Seven top executives at The Goldman Sachs Group Inc. of New York have asked not to receive bonuses this year, as the financial-markets crisis has fueled an outcry over hefty compensation.
The executives, including chief executive Lloyd C. Blankfein, will be eligible only for their $600,000 base salaries, according to The Wall Street Journal.
A Goldman spokesman said it was the "right thing to do," The Journal reported.
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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," the spokesman said.
Goldman, which has recorded record profits in recent years, recently transformed itself from an investment bank to a commercial bank to shore up its balance sheet.
Last year, Mr. Blankfein received a salary and bonus package that was worth $68.5 million.
Goldman also paid its two co-presidents, Gary D. Cohn and John Winkelried, about $67.5 million.
All three will forgo bonuses next year.
Others who will not take a bonus include the chief financial officer, David A. Viniar, and vice chairmen J. Michael Evans, Michael S. Sherwood and John S. Weinberg.
Analysts have predicted that Goldman will post a loss for its fiscal fourth quarter ending this month.
The loss would be a first for the company since it went public in the 1990s.
New York Attorney General Andrew Cuomo called the move "the right decision."
"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' step," he said in a statement.
Goldman execs just say no to bonuses
Aaron Siegel
Seven top executives at The Goldman Sachs Group Inc. of New York have asked not to receive bonuses this year, as the financial-markets crisis has fueled an outcry over hefty compensation.
The executives, including chief executive Lloyd C. Blankfein, will be eligible only for their $600,000 base salaries, according to The Wall Street Journal.
A Goldman spokesman said it was the "right thing to do," The Journal reported.
"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," the spokesman said.
Goldman, which has recorded record profits in recent years, recently transformed itself from an investment bank to a commercial bank to shore up its balance sheet.
Last year, Mr. Blankfein received a salary and bonus package that was worth $68.5 million.
Goldman also paid its two co-presidents, Gary D. Cohn and John Winkelried, about $67.5 million.
All three will forgo bonuses next year.
Others who will not take a bonus include the chief financial officer, David A. Viniar, and vice chairmen J. Michael Evans, Michael S. Sherwood and John S. Weinberg.
Analysts have predicted that Goldman will post a loss for its fiscal fourth quarter ending this month.
The loss would be a first for the company since it went public in the 1990s.
New York Attorney General Andrew Cuomo called the move "the right decision."
"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' step," he said in a statement.
The weak company performance is also expected to translate to lower bonuses for rank-and-file company employees, said spokesman Michael DuVally.
"Ít is clear, given the performance of Goldman Sachs this year, that the bonuses for employees will be down significantly," he said, but added that the company cannot say how much they will decline until the end of the year.
