Former Exec Rails on Paydays

By J. Kelman,  Newser User
Posted May 17, 2007 2:22 PM CDT

(Newser) – Former Goldman Sachs chairman John Whitehead is appalled by Wall Street's salary binge, and he wants his ex-employer to snap out of it. In an ornery interview with Bloomberg News, Whitehead, who ran the company from 1976 to 1984, says hedge funds sparked the rush toward obscene paydays but Goldman is now the "leader in this outrageous increase.''

Whitehead, who now runs Goldman's foundation, suggests a tough love approach: cut salaries and let the chips fall. "I would take the chance of losing a lot of them and let them see what happens when the hedge fund bubble ends,” Whitehead told Bloomberg. Goldman's CEO Lloyd Blankfein pulled in $54 million last year.