Lawfuel.com – The reduced drawings of Goldman Sachs chief executive Lloyd Blankfein, whose stock bonus was cut for the first time since the financial crisis, giving him shares worth $7 million last year – a 44 per cent drop from his 2010 payout, may signal a post-Occupy Wall Street era of reduced earnings more out of ‘social responsibility’ than anything else.
The lower Blankfein payout was based on a regulatory filing on Friday.
This is Blankfein’s lowest payout since he received no bonus for 2008, a year in which the New York securities firm accepted government funds, offering the latest sign that Wall Street executives are paying for a year of mixed financial performance and steep stock-price declines.
Goldman Sachs didn’t disclose whether Blankfein also received a cash bonus for 2011; he received $5.4m for 2010. The company said last year that Blankfein would make $2m in salary for last year, up from $600,000 for 2010.
Michael Sherwood, a London-based vice-chairman who also is a co-chief executive of Goldman Sachs International, received restricted stock worth $9.5m for 2011, according to a filing on Friday. Sherwood’s stock bonus for 2010 was $14.4m.
Four other Goldman Sachs executives – president Gary D. Cohn, vice-chairmen John S. Weinberg and J. Michael Evans, and chief financial officer David A. Viniar – each received $7m in restricted stock, the filings said. Like Blankfein, each of those executives received $12.6m in restricted stock for 2010.
Does this actually demonstrate a greater heed of public relations requirements or social responsbility, or is it just a ‘down’ market creating down remuneration for banking executives. Time and a little more analysis will tell.