Goldman Sachs CEO, six leaders give up 2008 bonuses

WASHINGTON (AFP) – Goldman Sachs CEO Lloyd Blankfein and six company leaders have renounced their 2008 bonuses, a company spokesman said Sunday.

Blankfein and the other company directors requested the company’s central committee in charge of bonuses not to make the payments due to the company’s poor performance in 2008. Their request was accepted, the spokesman told AFP.

“This decision applies to seven top executives,” he said.

“The fiscal year is not ended. For other executives, the compensation will be determined by what the company earns,” the spokesman added.

The investment bank‘s 2008 cycle ends in November.

In 2007, despite a looming subprime mortgage crisis, Blankfein received a Wall Street record-setting 68 million dollar bonys payment. His annual salary is 600,000 dollars.

In September, after third-quarter profits (845 million dollars) dipped 70 percent from one year earlier, Goldman Sachs converted to a bank-holding company allowing it to dip into the Federal Reserve’s bailout plan for commercial banks.

At Monday’s New York Stock Exchange closing, Goldman Sachs closed at 66.73. It has lost 70 percent of its value since the start of the year.

At the end of October, Goldman received 10 billion dollars from US government in return for a part of its capital, as part of the bailout plan of Treasury Secretary Henry Paulson, a former Goldman CEO.

The plan called for restrictions to bonus payments to CEO.

 

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