Goldman Sach's Blankfein collects &68 million bonus for 2007...WOW

fkornre

Boogity Boogity Boogity...Let's go racing boys...
Nov 4, 2006
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monroe twp, nj
#1
His base salary for 2007 in $600,000


Goldman's Blankfein collects $68M bonus
Payday in restricted stock, options and cash marks biggest ever for Wall Street CEO.
By David Ellis, CNNMoney.com staff writer
December 21 2007: 6:51 PM EST
NEW YORK (CNNMoney.com) -- Goldman Sachs Chairman and CEO Lloyd Blankfein will take home nearly $68 million in restricted stock, options and cash, making it the largest bonus ever given to a Wall Street CEO.

Blankfein was awarded $26.8 million in cash and $41.1 million in restricted stock and stock options, according to a company filing with the Securities and Exchange Commission issued Friday.

With this year's bonus, Blankfein shatters the record he set a year ago, when he was awarded $54 million.

News reports had originally projected that Blankfein will take home as much as $70 million, after helping to lead the company through this summer's market meltdown and the ongoing credit crisis.

Unlike some of its rivals, which have witnessed billions of dollars evaporate from their balance sheets, Goldman Sachs has proved unshakable. Just this week, the company reported better-than-expected fourth-quarter earnings, while peers like Morgan Stanley and Bear Stearns recorded steep losses.

As it stands right now, Blankfein will be among the few Wall Street CEOs to collect a bonus this year. After this week's dismal results, Morgan Stanley (MS, Fortune 500) Chairman and CEO John Mack and Bear Stearns (BSC, Fortune 500) chief James Cayne both announced they would forsake their 2007 bonuses.

While bonuses are common throughout corporate America, they are a far bigger part of overall compensation for all levels of employee pay on Wall Street than they are at a typical corporation.

Tom McMullen of the Hay Group, a human resources and management consultant, estimates that cash bonuses typically equal between 40 and 100 percent of base salary for top executives on Wall Street, while senior managers receive between 15 to 30 percent of base pay as bonus payments. Even entry-level employees might see 10 to 20 percent of their base pay in the form of a bonus.

This year was expected to be a difficult one for finance pros given the recent market turmoil and the ongoing credit crisis. Overall, financial firms were expected to cut bonuses up to 10 percent from a year ago, according to industry projections.

A year ago, bonuses on Wall Street reached a record $23.9 billion, averaging more than $136,000 per employee, according to the New York State Comptroller's office.

Facing the biggest bonus squeeze were those individuals working in mortgage-related areas, with their bonuses declining by as much as 50 percent from a year ago, according to a report published last month by the compensation research firm Options Group.

Even though dealmaking has slowed considerably on Wall Street, investment bankers are still expected to enjoy a bump in their annual bonus from a year ago given the frenetic pace of merger-and-acquisition activity in the first half of 2007.

With so many banks underperforming, many financial firms were widely expected this bonus season to shift from cash to stock in an effort to compensate employees while retaining talent. Some firms have already said they would cap their cash compensation, including UBS, which announced a limit of $750,000 for its workers.

Goldman Sachs (GS, Fortune 500) stock finished more than 3 percent higher in Friday trade.

Your bonus is safe, your boss' isn't
 

JimsInfectedEye

That's very hurtful, sir.
May 21, 2005
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#2
News reports had originally projected that Blankfein will take home as much as $70 million, after helping to lead the company through this summer's market meltdown and the ongoing credit crisis.

Unlike some of its rivals, which have witnessed billions of dollars evaporate from their balance sheets, Goldman Sachs has proved unshakable. Just this week, the company reported better-than-expected fourth-quarter earnings, while peers like Morgan Stanley and Bear Stearns recorded steep losses.
I guess I don't see a problem with it - its not like the company tanked and had to lay off thousands. If he was largely responsible for the success, why not reward him and retain his services?
 
Dec 25, 2005
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I guess I don't see a problem with it - its not like the company tanked and had to lay off thousands. If he was largely responsible for the success, why not reward him and retain his services?
true.. but 70mil just seems absurd when you're hoping for a few hundred for your bonus.
 

fkornre

Boogity Boogity Boogity...Let's go racing boys...
Nov 4, 2006
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#4
true.. but 70mil just seems absurd when you're hoping for a few hundred for your bonus.
yup...also if your base salary is $600,000/year, how do you qualify for a $68 million dollar bonus??? his $26.1 million in cash is more than he would make in like 40 years...
 

FellowTraveler

Frank Reynolds is my hero
Jul 24, 2005
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#5
kinda makes the gym bag I got look like a piece of shit
 

domelogic

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Feb 16, 2005
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#7
thats why his salary is so low. that way he can make more in a bonus if the company does well. its like being a sales rep and going mostly on commission. that being said this is absurd. i would find it hard to believe that customers arent shouldering the bulk of this payout. imagine how much less the fees would be if these type of payouts stopped.

i dont care how well the company does or did, he isnt soley responsible for that and to make 122mil in two years is ridiculous.
 

fkornre

Boogity Boogity Boogity...Let's go racing boys...
Nov 4, 2006
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monroe twp, nj
#8
holy shit...i did not do the research where he got $54 million last year...that is just insane!!!!!!!!!!
 

fkornre

Boogity Boogity Boogity...Let's go racing boys...
Nov 4, 2006
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monroe twp, nj
#10
not at all moe...i do not follow this stuff at all...just briefly heard about this goldman sachs guy so i posted it...

$1.5 billion is something i could not even imagine making in a year...

and why do you wish you were a jew???
 

moegolden

Perv-switch toggler
Oct 3, 2004
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#11
and why do you wish you were a jew???
because, stereotypes aside, they seem to have done a better job education-wise into being prepared for and getting these types of jobs.

someone may want to call me out on stereotyping, but I don't take it further than the anecdotal evidence of reading the business section every day.

personally, i'm not too bitter about it, because I've got other things I want to do more than high finance.

check this out...
http://nymag.com/nymetro/news/culture/features/1478/
 

fkornre

Boogity Boogity Boogity...Let's go racing boys...
Nov 4, 2006
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#12
because, stereotypes aside, they seem to have done a better job education-wise into being prepared for and getting these types of jobs.

someone may want to call me out on stereotyping, but I don't take it further than the anecdotal evidence of reading the business section every day.

personally, i'm not too bitter about it, because I've got other things I want to do more than high finance.

check this out...
http://nymag.com/nymetro/news/culture/features/1478/

i will def read that article in full tonight...seems interesting...

as for that stereotype...it passed me by at full speed...i am the brokest jew in the history of man...
 

Nortonsmeatytit

"That ball is outta here"
Sep 11, 2005
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#13
More & more corporations have setups that allow senior execs to receive ridiculous bonus perks even based on mediocre performance metrics while pushing off the losses further down the food chain to mid level execs and even to sales people out on the street. Everyone makes less except them, come hell or highwater it's basically "fuck you, pay me"
 

domelogic

Registered User
Feb 16, 2005
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#14
those hedgefund managers make a killing because its there job to make money any way they can. reading one of ben mezrich's books said that they get people to invest in their hedgefund and then expect profits, somehow someway. for this they are paid ridiculously well. from what he said it pushes the ethics to a new level as some arent dealing with just the stock market

hey norton on a side note about execs. i am in sales and the new vp of sales decided to change some things. well long story short he tied our commissions into the company budget. he sets it way to high and if we hit it everyone wins if we dont we get nothing and well the company still does cuz if they had set it right we would have hit our mark. crazier is the fact that this ahole actually has 3 sales divisions selling competing products against one another to get more market share. again a win for senior execs and a loss down the ladder
 

Nortonsmeatytit

"That ball is outta here"
Sep 11, 2005
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#15
hey norton on a side note about execs. i am in sales and the new vp of sales decided to change some things. well long story short he tied our commissions into the company budget. he sets it way to high and if we hit it everyone wins if we dont we get nothing and well the company still does cuz if they had set it right we would have hit our mark. crazier is the fact that this ahole actually has 3 sales divisions selling competing products against one another to get more market share. again a win for senior execs and a loss down the ladder
There is so much crazy barely ethical bullshit being perpetrated by senior exec's towards sales people & compensation (for us at least) I recently left a company I was with for 6 years in which I built my business into yearly annualized revenue of about $1.2 million and was compensated well on new business revenue goals, retention percentage was good month to month, good salary, etc. To make a long story short they took away the monthly residual business commission to promote retention (I lost $60,000 right there) and they started this three month revolving commission structure (quarterly based, makes sense right?) so you couldn't bury a shit load of cancelled contracts in one month and start fresh the next. If you had a bad month that shit haunted you for like 90 days where you'd miss other percentage goals and you would be fucked into living off salary alone. Took $75,000 out of my pocket like a fart in the breeze but fuck'em, the place has lost all of it's seasoned & best sales staff. Exec's forget that sales occur from long term trust relationships sales people have aquired over time with senior exec's/owners of companies they deal with, not slashing bottom line costs and fucking your most revenue productive people, that shits just short sighted fuckin stupidity if you ask me. These idiots develop sales compensation plans in order to drive numbers on a spread sheet for maybe three quarters if their lucky, if sales people have no trust in the organization you can kiss it all goodbye and hire 23yr olds right out of college and turn & burn them every 2.5 years, fucktards.
 

domelogic

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#16
it makes me wonder if the execs ever had a sales background. the constant switching of compensation plans never produces results. i have worked for some clueless assholes that will never realize relationships drive most sales. you have to pay sales people based on their own numbers and not just how the company does. its counter productive to a competitive enviorment. i have yet to hear of a company that didnt fuck with how they paid their best reps and ended up losing most of them.
 

HummerTuesdays

Another girrrrl!!!
Apr 24, 2005
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#17
I like the companies that have a rule that the highest paid employee can't make more than a certain amount above the lowest paid. I can't remember which companies do that, probably because I've never worked for one.
 

Don the Radio Guy

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#18
The guy made a shitload of money for his company. Who cares how much he made unless he owes you money?

This coming from someone who never gets a cash bonus from work. If I could run Goldman Sachs I'd make that much too. Just like if this guy could only drive a truck, he'd make what I do.

The world needs ditch diggers too.
 

Nortonsmeatytit

"That ball is outta here"
Sep 11, 2005
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#19
i have yet to hear of a company that didnt fuck with how they paid their best reps and ended up losing most of them.
and yet they will maintain to keep on some "weak stick" sales people who hit goal like three or four times a year and expect more from the field sales people who grind out goal 10 or 12 mos a year??? WTF is that???

The wholes "sales funnel" concept seems fine when you look at it except senior management at most companies is working overtime to pack pure shit up the pipe in the opposite direction and how they set up these schemes almost guarantees them a solid payoff no matter what. They've put the loss squarely on the backs of the field sales reps w/little or no exposure to themselves.

In the past couple years I've yet to hear from a good field sales rep who hasn't been seriously fucked out of commission comp from a territorial re-arrangement, they are skimming millions off the backs of the people who helped build their business, so many people are just fed up w/this shit, fuckin con artistry at it's best.
 

Schmed

I'm a corpse without a soul...
Nov 4, 2002
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#20
I work as an IT consultant at a large hedge fund, and some of these guys, even the desktop support guys get a 90% bonus on top of their 90-100K a year base salaries, they do work 11-12 hr days though.

These guys are very clever in terms of making $$ with things such a Market Neutral and long/short funds that are profitable in bull and bearish market conditions. To me, it's all a ponzi scheme waiting to collapse. CMOs and CDOs just seem another method to wrap shitty underlying assets (junk bonds, subprime mortgages) in a pretty wrapping and hawk to the rich public.

Fuck George Soros, he's a socialist pig.
 
Jul 13, 2006
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#22
$122,000,000 isn't bad for two consecutive annual bonuses. I wouldn't mind having that job.
 

Max Johnson

Registered User
Oct 14, 2004
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#23
This is why I have a problem with people complaining about the salaries of pro athletes. You can statistically prove beyond a shadow of a doubt that nobody on planet Earth can do what A-Rod does as well as he does it (taking the post season out of the equation). We cannot say it about this guy. This guy could very easily be taking credit for the work of the people around him.

On the other hand maybe he is worth it. If he is legitimately this good, then he deserves the big money. If this company doesn't give it to him, somebody else will. Free market. Excellence costs money. My problem really is only when these CEO's get big pay even when they don't get the job done. Big bonuses despite the company going into the shitter.

As for Jews being smarter, I think they have no more potential than anybody else but there are a couple of things that factor into their success:

1) They are driven from an early age. Parents constantly staying on top of their kids about education and success and all that.
2) They look after each other in a way that is basically a form of discrimination. Let me explain with a simple example. A guy at work doubles as a tow truck driver. He got a call for a guy whose truck broke down in mid-Westchester and needed a tow. This guy - a hasiddic jew - demanded that he be towed to a station owned by hasids down in Brooklyn. It cost him hundreds of dollars extra and they passed a ton of perfectly good stations on the way, but that's what he wanted. Now if the tables were turned and the guy said "Take me to any garage that isn't Jewish owned" then that'd be anti-semitic discrimination but it's allowed when it's minorities doing it.

The same thing could easily be the case in hollywood or in business. I'm completely non-ethnic. My family celebrates no customs and I don't have reams of relatives of the same racial/ethnic/religious background that all get together all the time. I have noticed that this is not the case with Jews and in my areas Italians, Latins, ...once any of them get anywhere, they are stepping stones for everyone else of their group (again...discrimination when you get right down to it). If you go for a job interview or a role and the person in charge is the same group as you, with all else being equal, you get some favoritism over the guy next to you.

When you combine the relentless drive cultivated since birth with looking out for the other members of your group, you eventually will get more success than the rest of society. Every individual breakthrough is a victory for the group as a whole.

Man I got off on a tangent here.
 

domelogic

Registered User
Feb 16, 2005
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#24
On the other hand maybe he is worth it. If he is legitimately this good, then he deserves the big money. If this company doesn't give it to him, somebody else will. Free market. Excellence costs money. My problem really is only when these CEO's get big pay even when they don't get the job done. Big bonuses despite the company going into the shitter.


I have to agree with this. I just have a problem with someone getting 2 years of a bonus for 122mil. its as absurd as what pro athletes make. but someone will pay them if they are good. the only problem is that joe worker is paying for everything somehow someway.
 

Nortonsmeatytit

"That ball is outta here"
Sep 11, 2005
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#25
The hasiddic's I've come across in business all stick together like friggin glue, be it business trading, banking, etc. something to be said for that IMHO they are fiercly loyal.