Top Goldman Executives Won’t Get Cash Bonuses This Year


Score one for the loudmouth populace: Despite their spectacular returns, Goldman Sachs, which has been widely reported to be "on track to pay record bonuses," will be giving its top executives restricted stock instead of cash this January.

Goldman said that all 30 members of its executive committee, which encompasses top managers across its businesses, will receive their discretionary compensation in the form of shares at risk, a form of restricted stock that cannot be sold for five years and includes a clawback option in case their businesses falter down the road.

Sure, you might say, but isn't this really just delayed gratification? They're still going to get millions of dollars in stock, and in fact, won't that be worth more someday? The answer is yes, probably, but who knows, plus, it doesn't feel nearly as good in the moment. A friend of ours at a financial institution that we will not name breaks it down thusly: "Getting 10 million in cash and 10 million in restricted stock is the difference between getting your boss a present he'll probably like and telling him to go fuck himself ."

Goldman Alters Pay Plan for Top Executives [DealBook/NYT]