Daily Banking Industry News
Monday 14th of December 2009

Banking Sectors:

By company:

By organisation:

Also see:

December 11, 2009

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.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Goldman Sachs to pay bonuses in shares

Goldman Sachs head breaks rank on bonuses  ...

Goldman Sachs threatens blogger with legal action  ...

Goldman Sachs posts $2.12bn fourth-quarter loss  ...

Goldman posts second quarter profit of $3.4bn  ...

Goldman Sachs announces $5bn fundraising  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Pension transfer incentives a threat to employees
Next: ICBC wins Golden Vessel and Platinum Award »

Visited 260 times, 3 so far today

Investment Banking News


Savings & Investment News


Borrowing & Lending News