Goldman Sachs boss nets $14.1m package
Goldman Sachs has signalled an end to a short-lived era of "restraint" in salaries and bonuses by awarding its chief executive $14.1m (£8.7m) in cash, stock awards and perks for the last year. The payout is a huge increase from 2009, when Lloyd Blankfein was awarded just over $1m for his efforts, according to the Associated Press.
Goldman Sachs was one of a number of Wall Street firms that appeared willing to restrict bonuses and payouts in the light of the financial crisis and the resulting government bailout. The firm received $10bn from Washington in 2008. In 2010, the bank's revenue fell 13 per cent to $39.2bn.
Nevertheless, Mr Blankfein's compensation for last year includes a cash bonus of $5.4m and stock awards of $7.7m. He was also granted restricted stock valued at $12.6m, which is not counted in the total annual package because the grants are paid out over a period of three years.
Mr Blankfein has been a controversial figure on Wall Street. After a childhood of intense poverty in the South Bronx, he rose through the ranks at Goldman's banking operations to became chief executive in 2006. Last year he jokingly described his company's role in the world economy as "doing God's work" – a slip for which he later apologised.
Although his salary is among the top tier for US executives, it is a fraction of what it was just a few years ago. In 2008, Mr Blankfein was known as one of the highest-paid chief executives in the world, taking home a package worth in excess of $42m.
However, the company's reputation took a beating during the financial crisis and has declined further in the light of fraud allegations by US regulators. The Securities and Exchange Commission last year brought a civil fraud lawsuit against the bank, charging it with misleading investors about the risk associated with some mortgage funds. Investors lost close to $1bn, while a Goldman client, Paulson & Co, profited from the investments, the government said. Goldman paid $550m to settle the lawsuit. The company has also set up funds to assist small US businesses and entrepreneurs.
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 2 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Nepal earthquake: Rescuers forced to dig with their bare hands in search for survivors as images show damage to historic buildings
Ed Miliband and Boris Johnson in angry clash live on BBC's Andrew Marr Show
Bali Nine executions: British grandmother on death row in Indonesia Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...