Goldman Bosses Take a Pass on Bonuses

Wall Street's meltdown prompts top 7 execs to settle for $600,000 base pay

By Jim O'Neill, Newser User

Posted Nov 17, 2008 7:10 AM CST

(Newser) – After an abysmal year, Goldman Sachs' top seven executives—including CEO Lloyd Blankfein—will give up their 2008 bonuses, totaling tens of million of dollars, reports the Wall Street Journal. The decision could force other execs on Wall Street to follow suit, reducing some of the pressure on investment banks that have been pilloried for their role in the Wall Street meltdown. The execs will be paid their base salary of $600,000.

In 2007, Blankfein collected $68.5 million in cash and stock from the investment bank, a record payout. One senior executive at another firm joked about what he calls the “Lloyd watch,” adding "If Lloyd doesn't take home a bonus no one will." Goldman fared better than other investment banks, but its stock is down more than 60% and it's expected to post its first-ever quarterly loss in December.

[Images (4)]

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Lloyd Blankfein, right, CEO of Goldman Sachs, leaves the New York Stock Exchange Oct. 10. (AP Photo/Mark Lennihan)

Lloyd Blankfein, right, CEO of Goldman Sachs, leaves the New York Stock Exchange after attending a panel discussion Friday, Oct. 10. (AP Photo/Mark Lennihan)

Lloyd C. Blankfein, CEO of Goldman Sachs. (AP Photo/David Karp)

The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs. (AP Photo/Richard Drew, file)

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While the firm has distinguished itself through many aspects of the crisis, we cannot ignore the fact that we are part of an industry that is directly associated with the ongoing economic distress."
- Goldman Sachs spokesman

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Goldman Bosses Take a Pass on Bonuses