Goldman Sachs to pay bonuses in shares
by Gill Montia
Story link: Goldman Sachs to pay bonuses in shares
As bankers’ bonuses continue to enrage governments and taxpayers, Goldman Sach has announced that its 30 highest-paid earners will in future receive their bonuses in shares that cannot be sold for five years.
The investment bank’s participation in the US Troubled Asset Relief Programme left it with government debt of $10 billion which was repaid in June, after a successful $5 billion fundraising.
Having relied on taxpayer support, the bank’s chief executive, Lloyd Blankfein, broke ranks with other banking heads and sympathised with public outrage over bonuses, saying it was “understandable and appropriate”.
He has also advocated a link between bonuses and the long-term profitability of financial institutions.
Meanwhile, in France and Germany, ministers have voiced support for Chancellor of the Exchequer Alistair Darling’s one-off tax of 50% on bankers’ bonuses, introduced in his pre-Budget report earlier this week.
The charge, which will be paid by banks paying discretionary individual bonuses of over £25,000, could raise £500 million.
The money will be used to provide opportunities for the unemployed.
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