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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Reader Comments (Page 7 of 7)
11-30-2008 @ 3:27PM
Ronda said...
Washington doesn't care about us. Why should they?
I mean they get free health care, they don't have to buy gas because they are riding around in limosines, they don't care.
The amount of money that was spent on the elections is pathetic. There were and are betters ways that money could have been spent. It is sad when you have American people going hungry with nothing or barely nothing to eat, and the hypocrits in Washington are having parties, hosting other governments and feeding them like royalty while their on people go without.
I wonder if they think about us when they are eating their lobster and steak. I bet you they aren't. They don't give us a second thought because they have their lobster and steak, who cares what the people that put their asses in office are eating.
11-18-2008 @ 1:55PM
david price said...
If the government is really interested in saying millions there is a very easy way to do it.
Take the Senators,Congressmen and President off their "Golden Egg" retirements and put them on Social Security like the rest of us.
Of course that will never happen because they dont care about anyone except themselves.
Another easy way to stop spending is to remove the IRS and start a 1% tax each time money changes hands. No income tax at the end of the year and no Billions to fund the IRS system itslelf. Of course all the non-profit organizations will sream at that one, so it wont happen either. But it would get more money than the present system and eliminate a large money grabbing portion of the Federal Government.
No one seems to remember the constitutional signers who said that small government is the best government and that it should be watched continuously to insure it dosnt grow. Any bueracy's only interest is only interested in perpetuating itslelf.
11-18-2008 @ 1:11PM
You said...
I'll give them credit for doing on their own something that should have been a condition of the bailout! If you are receiving money it's because your business is FAILING... If our businesses fail do we get bonuses... no we get fired!
11-18-2008 @ 4:23PM
Audrey said...
First of all, betting that shares will fall, when you are in the business of selling shares, persuading people to buy, is a disgraceful practice called "short selling." It is this that has brought about, in part, the financial disaster. In New York, and in Londonat Lehman Brothers, these bastards bet on shares falling, then went to ritzy restaurants to celebrate -- I read that in the London Daily Express. As for the shareholders? They'd better be screaming about huge bonuses for these manipulators of the stock market. As for giving up bonuses ... please, I'm not crying in my tea cup. They had too, the pressure was on them and it was too hot to handle. Not only that, the Senate Banking Committee was waiting for just that stupid and selfish and greedy move. Stop applauding these self-servers. They had a reason for giving up the bonuses - it was a matter of survival.
11-18-2008 @ 9:45PM
Kath Walsh said...
It's about time!! No lie. They should also
take at least 25% salary cut seeing as they were in charge to begin with. But better yet the 25% should apply to all our government officials as well seeing as they let it happen. The little guy can't bail them out any more.
11-18-2008 @ 11:04PM
DAVE said...
Very disappointed in the way banking system has done & wall st. also.
however at $28,000 a yr. Your $600,000 would last me a lifetime. But not taking any bonuses I do think is the right thing to do. Anyone getting my bailout money would not get it if they did want a bonus for fixing somthing they messed up in the first place. If I broke something my employer say's that on you & I have to pay to repair it or fix it myself without pay.