Top Goldman Sachs (GS) execs take no bonuses

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The top seven executives at Goldman Sachs (NYSE:GS) will take no bonuses for 2008. That will leave them with their $600,000 base salaries and perhaps the status of heroes as Wall Street crumbles. According to The Wall Street Journal, "they are giving up potentially tens of millions of dollars in payouts in a year that reshaped the securities industry."

It is also a politically savvy move which may move Goldman out of the spotlight as being a firm where greed rules and bankers will do anything to make money, even at the expense of the financial markets.

Probably none of the people on the list needs the money, but Goldman needs a boost to its reputation. The firm did make bets that mortgage-backed securities, some of which it sold, would fall in price. It is also famous for handing out money to partners as if it were candy. Plus, its shareholder have taken a beating as the company's stock has fallen to $247 to $67.

Perhaps the most interesting question now is whether other Wall Street fat cats will follow. There is pressure from Congress for large financial firms taking bailout money not to have that cash leave the companies in the form of compensation. Goldman has upped that pressure on its peers by setting a precedent.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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Last updated: February 09, 2010: 05:30 PM

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