No cash bonuses for Goldman Sachs` top 30 executives
New York: Amid the growing uproar over
exorbitant executive salary, financial services firm Goldman
Sachs has said its top 30 executives will receive their annual
bonuses only in stocks rather than cash this year.
The company`s 30-person management committee, including
Chairman and Chief Executive Officer Lloyd Blankfein, Chief
Financial Officer David Viniar and leaders of the firm`s
global and regional divisions, would get bonuses in stocks,
which cannot be sold for five years.
"The firm`s entire 30-person management committee, which
comprises all global divisional and regional leadership, will
receive 100 per cent of their discretionary compensation in
the form of Shares at Risk, which are subject to restrictions
for five years," Goldman Sachs said in a statement.
According to reports, earlier top executives of Goldman
received their bonuses in the ratio of 70 per cent stocks and
30 per cent cash, with the bonuses vesting over four years.
The moves comes amid a public furore worldwide over huge
bonuses and incentives paid to bankers, which is widely
believed to one of the causes for the global financial crisis.
Earlier this week, the UK government proposed a temporary
50 per cent tax on bonus payout for the bankers. The
government added that it attached great importance to tackling
remuneration practices that contributed to excessive risk-
taking by the banking industry.
Further, Goldman Sachs said shares can be taken back in
cases employees are engaged in materially improper risk
analysis or fail to raise concerns about risks.
The board of directors have approved changes in the
compensation policy for 2009, and shareholders would have an
advisory vote in the compensation of its named executive
officers at the firm`s annual meeting of shareholders in 2010.
The move of share recapturing would ensure that "our
employees are accountable for the future impact of their
decisions, to reinforce importance of risk controls to the
firm and to make clear that our compensation practices do not
reward taking excessive risk," the statement added.
"The measures that we are announcing today reflect the
compensation principles that we articulated at our
shareholders` meeting in May," Goldman Sachs Group Chairman
and CEO Lloyd C Blankfein said.
We believe our compensation policies are the strongest in
our industry and ensure that compensation accurately reflects
the firm`s performance and incentivizes behavior that is in
the public`s and our shareholders` best interests," Blankfein
"In addition, by subjecting our compensation principles
and executive compensation to a shareholder advisory vote, we
are further strengthening our dialogue with shareholders on
the important issue of compensation," Blankfein added.
More from India
More from World
More from Sports
More from Entertaiment
- IAF Mirage fighter plane lands on Yamuna Expressway!
- 'Maggi' under regulatory scanner for excess amount of lead, MSG
- Watch: Michelle Obama's 'Gimme Five' fitness video
- When Subramanian Swamy shocked people at a wedding!
- Mumbaikars join hands to save Pakistani teen with rare illness
- DNA: Analysis of Hurriyat chief Syed Geelani's passport issue
- DNA: Analysis of traffic system of Vancouver, Canada
- Mumbai: Diamond export company denies job to Muslim youth
- Aapke Sitare: Astro prediction for May 21, 2015
- Mirage 2000 fighter jet landing was part of capability demonstration: IAF
- DNA: IAF Mirage 2000 fighter plane lands successfully on Yamuna expressway
- DNA: Osama documents show 'Indian brother in Madinah' financed al Qaeda
- PM Modi's key campaign team member may join Nitish Kumar
- Woman robbed at gunpoint inside Hyderabad ATM
- Watch: Top 25 Headlines @10 am
- RBSE (rajresults.nic.in) Class 12th science and commerce results 2015: Rajasthan Board Class 12th XII exam results 2015 expected to be announced on May 21
- RBSE (rajresults.nic.in) Class 12th science and commerce results 2015: Rajasthan Board Class 12th XII exam results 2015 to be announced today at 4 PM
- JAC 12th Inter Arts Result 2015: JAC 12th Inter Arts Result 2015 (jharkhandeducation.net) likely to be announced on Thursday May 21 at 1 PM
- CBSE Class 10 Results 2015 to be announced today?
- IAF jet lands on Yamuna expressway
- Check Jharkhand Board jac.nic.in: Class 12th Art Results 2015 declared
- Log on to apeamcet.org AP EAMCET Results 2015: Andhra Pradesh EAMCET Marks and AP EAMCET Ranks 2015 declared
- Andhra Pradesh EAMCET results 2015: Andhra Pradesh EAMCET results to be announced on May 21 at www.apeamcet.org
- Fawad Khan doesn’t want intimate scenes with Sonam Kapoor?
- We hire only non-Muslim candidates, diamond export firm tells Muslim youth
- Is MSG in 'Maggi' noodles harmful for you?
- DHSE (dhsekerala.gov.in) 12th Result 2015: Kerala DHSE Class 12th XII exam results 2015 to be announced on May 21
- Mumbai firm booked for denying Muslim MBA graduate job on religious grounds, probe ordered
- SSLC (tnresults.nic.in) Tenth 10th Results 2015: Tamil Nadu Board Class 10th X Higher Secondary exam results 2015 to be declared on May 21
- 'IAS officer DK Ravi possibly committed suicide, suffered big loss in real estate business'