No Bonuses for Goldman’s Chiefs

November 17, 2008

Wall Street (ChattahBox) – Goldman Sachs has announced that its seven Chief Executive will not receive any bonuses this year for the work done. The directors of the bank received a letter on Sunday signed by the top executives at Goldman Sachs asking that they receive no bonus pay for their work in 2008. The directors accepted the request, said the company spokesperson, Lukas van Praag.

Goldman Sachs Group Inc. set a record last year for the Wall Street pay. It has now become the first bank to scrap bonuses for its top executives. With the intensifying public scrutiny, such a move from Goldman Sachs will put immense pressure on its competitors like Morgan Stanley to take similar steps. Goldman and Morgan have already been approve $10 million each from the $700 billion US Federal bail out plan.

The Chief Executives including the CEO Lloyd Blankfein will be eligible for only their basic salaries which are $600,000 for each executive. The banks had received prior warnings from public officials such as the New York attorney general, Andrew M. Cuomo, Representative Henry A. Waxman, Democrat of California, industry lobbyists and interest groups regarding the bonus handouts this year. They had been asked to refrain using any taxpayer money in the form of awarding bonuses to their executives. Mr. Cuomo and Mr. Waxman had both requested the banks to provide detailed information on what they intend to pay this year.

In a statement Sunday, Mr. Cuomo said, “This gesture by Goldman Sachs is appropriate and prudent and hopefully will help bring Wall Street to its senses. We strongly encourage other banks to follow Goldman Sachs’s step.”


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