Maybe Goldman Sachs (GS) does care what outsiders think about it. The company has come under plenty of fire this year for its post-financial crisis bonus payments, especially after having accepted TARP money from the government. In order to keep the world off its back, the bank is going to pay managers their annual bonuses in stock this year instead of cash.

And the stock issued will have to be held for five years. So, recipients will have a long-term stake in the company. But it seems they're being compensated for that, too as GS is spending a total of over $20 billion in compensation.

Continue reading Goldman Sachs to pay $20 billion bonuses in stock, not cash

Goldman Sachs to pay $20 billion bonuses in stock, not cash originally appeared on BloggingStocks on Fri, 11 Dec 2009 09:40:00 EST. Please see our terms for use of feeds.

At Microsoft, the world really is flat - at least its stock price for the past few years. Yet, the company's executives are getting paid as if they are really improving stockholder value.

In fact the overall performance bonuses amount to almost $1 billion, according to recent SEC filings. Yes, it's an unusual definition of performance. Then again, in Corporate America, it seems that executives get bonuses whether they perform or not.

In the case of Microsoft the bonuses are in the form of stock. The idea is that the executives' interests will be aligned with the shareholders'. Well so far it hasn't worked out very well.

How about firing some of these executives? Maybe that will be an incentive to get better performance?

Ironically, these bonuses were the result of a compensation plan Microsoft established three years ago. Because of the steep fall in the company's stock after the dot-com boom, the company's stock options were severely out-of-the-money. So, the company moved to restricted stock grants. These grants vest over time, and now we are seeing this happen.

Here are just some of the payouts: Jeff Raikes, the president of Microsoft Business Division, got $7.5 million; Kevin Johnson, the co-president, Platforms & Services Division, got $6 million; and Brad Smith, general counsel, got $2.3 million.

This is definitely a cool gig if you can get it.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Microsoft Execs Get Millions in Awards. Huh? originally appeared on BloggingStocks on Fri, 01 Sep 2006 13:10:00 EST. Please see our terms for use of feeds.