Goldman Sachs top executives to receive all-stock bonuses

08:34, December 11, 2009      

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The Goldman Sachs Group Inc., announced Thursday that the firm's top executives will receive all-stock bonuses this year.

"The firm's entire 30-person management committee, which comprises all global divisional and regional leadership, will receive 100 percent of their discretionary compensation in the form of Shares at Risk, which are subject to restrictions for five years," the Wall Street giant said in a statement on its website.

"The five-year holding period on Shares at Risk includes an enhanced recapture provision that will permit the firm to recapture the shares in cases where the employee engaged in materially improper risk analysis or failed sufficiently to raise concerns about risks," it added.

Goldman has reported record profits in the past two quarters, with net income in excess of 3 billion U.S. dollars. According to the Wall Street Journal, Goldman employees were on pace to earn 717,000 dollars per person in 2009.

"The measures that we are announcing today reflect the compensation principles that we articulated at our shareholders' meeting in May. We believe our compensation policies are the strongest in our industry and ensure that compensation accurately reflects the firm's performance and incentives behavior that is in the public's and our shareholders' best interests," said Lloyd C. Blankfein, chairman and CEO of Goldman Sachs.

Goldman has faced public anger for setting aside nearly 17 billion dollars for year-end bonuses after receiving a 10-billion-dollar taxpayer bailout during the financial crisis.

The announcement also came a day after Chancellor of the Exchequer Alistair Darling said the U.K. will require banks to pay a 50 percent tax on any bonus they pay to employees for 2009 that exceeds 25,000 pounds (or 40,611 dollars).

Source: Xinhua
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