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Goldman Exec: Pay Inequality Is Good for All

Soaring Wall Street bonuses should be tolerated for economy's sake

By Rob Quinn, Newser Staff

Posted Oct 21, 2009 6:00 AM CDT

(Newser) – Believe it or not, lavish Goldman Sachs bonuses are good news for everybody, a company official told a discussion panel yesterday. The out-of-whack pay inequality will give the economy a kick in the pants, insisted the vice chairman of Goldman Sachs International. "We have to tolerate the inequality to achieve greater prosperity and opportunity for all," he explained to conference members attending discussions on "The Price of Morality in the Marketplace."

He also emphasized that bankers should give more to charity to boost the industry's image. "To whom much is given, much is expected,” he said. “There is a sense that if you make money you are expected to give." The company has paid back $10 billion in bailout funds and is on course to hand out a near-record $20 billion in pay and bonuses this year, Bloomberg reports.

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Goldman Sach's headquarters towers over a New York street. (AP Photo/Mark Lennihan)

A man walks out of Goldman Sachs headquarters in New York. The company has paid $16.7 billion in salaries and bonuses so far this year. (AP Photo/Mark Lennihan, File)

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I believe that we should be thinking about the medium term common good, not the short term common good. - Brian Griffith, vice chairman
of Goldman Sachs International

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Goldman Exec: Pay Inequality Is Good for All