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Goldman Execs To Get $111 Million In Delayed Bonus Payoffs Next Month

Tyler Durden's picture


For those who are concerned that the head executives of the bank that does god's work, and has repeatedly claimed it did not need taxpayer bailouts even though it borrowed from the Fed's Primary Dealer Credit Facility not once (that would be explainable), not twice (also), but 84 times, worry not: Bloomberg reports that in January, Lloyd Blankfein and his top deputies will receive $111.3 million in stock in a "payoff from last year and their record-setting 2007 bonuses." Specifically, Lloyd will get $24.3 million, $24 million will go to President Gary Cohn, $21.3 million to CFO David Viniar, $20.8 million to Jon Winkelried, and $14.3 million to Edward Frost, former co-head of investment management. And as Bloomberg reports: "The payouts, just a portion of the $67.9 million bonus awarded to Blankfein for 2007 and the $66.9 million paid to Cohn, reflect a 24 percent decline in the stock’s value since it was granted at $218.86." To be sure, this money was well-earned: "Within a year after the bonuses were approved, Goldman Sachs took $10 billion from the U.S. Treasury, converted to a bank and was borrowing as much as $35.4 billion a day from Federal Reserve emergency programs. This year the firm paid $550 million to settle U.S. regulators’ fraud charges related to a mortgage-security the company sold in 2007." Luckily, the violent images in the prior clip are from Athens, and not south Manhattan: after all Americans have so much to be grateful to their bankers for: for one, there are least 10% of the benefits in the recent tax extension left that have not been consumed by the recent spike in oil prices.

And some more facts that will most certainly not get anyone's blood boiling:

JPMorgan Chase & Co. CEO Jamie Dimon, 54, is set to receive $6.8 million worth of shares next month that were awarded for 2007. John Mack, 66, who served as CEO of New York-based Morgan Stanley until this year, didn’t take a bonus in 2007, 2008 or 2009. He will receive about $5.4 million of previously vested shares in January that Morgan Stanley awarded him for 2005.

Of the $111.3 million in restricted stock awards due to be doled out in January, $94.9 million was from 2007 grants, the filings show. While Vice Chairmen John S. Weinberg and J. Michael Evans will each receive $3.3 million from their 2009 bonus grants, their 2007 awards weren’t published in the proxy.

The executives will be restrained from cashing in the stock they receive. Blankfein, Cohn, Winkelried and Viniar were all required to keep 90 percent of their shares under an agreement reached with Berkshire Hathaway Inc., the company controlled by billionaire Warren Buffett, when it bought $5 billion of the firm’s preferred stock in 2008. That limit expires when Buffett’s investment is repaid or on Oct. 1, 2011, whichever comes soonest.

Even before the Buffett restrictions were imposed, Goldman Sachs’s CEO, CFO, presidents and vice chairmen were required to keep at least 75 percent of the shares they had received since becoming senior executive officers, with the exception of shares received in Goldman Sachs’s 1999 initial public offering or through any acquisition by Goldman Sachs. Morgan Stanley and JPMorgan also require top executives to retain 75 percent of the shares they are awarded.

And the kicker: this is fair money earned based on performance targets.

About 88 percent of the 2007 awards were restricted stock units the firm granted for performance, which were vested at that time. The executives receive the shares underlying those units in January 2011. The remaining 12 percent are shares the executives purchased at a 25 percent discount using their 2007 cash bonuses. Those shares are either delivered or have restrictions lifted next month.

And since these gentlemen are about to be paid bonuses on short-term performance, we are confident they will be claw-backed all their stock-based bonuses since the beginning of their careers at Goldman, as their bonus (not to mention net worth) would be zero based on the banks' performance in 2008, had the taxpaying public not stepped in and bailed each and every one of them.

As for what the popular reaction will be to this news...

“The public will be outraged,” she said. “Wall Streeters will be excited that there’s still money being made on Wall Street, and there’s still a reason to be working so hard.”

Whoever said hard work (aka infinite moral hazard, and a perpetual taxpayer bailout fallback) does not pay off...


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Wed, 12/15/2010 - 15:44 | 808996 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You know you're at the end game stage when they don't bother to try and hide their criminal activites anymore.

Wed, 12/15/2010 - 15:48 | 809018 Malcolm Tucker
Malcolm Tucker's picture

Don't worry , they are doing "God's work" in funding our war against 157 million muslim terrorists!


Wed, 12/15/2010 - 17:36 | 809515 Fredd00
Fredd00's picture

Obviously this is another good news for the stocks

Wed, 12/15/2010 - 19:27 | 809906 dogismyth
dogismyth's picture

EAT THE RICH! Or better yet, boil'em slowly like a frog.


BTW...the sense is the satanist/luciferians/reptilians will crash the markets for Xmas. That's just how arrogant and evil they can be.

Wed, 12/15/2010 - 15:47 | 809009 NoBull1994
NoBull1994's picture

More gold chains and hair gel for all these guido bankers!

Wed, 12/15/2010 - 16:14 | 809165 squexx
squexx's picture

More like matzos and gefilte all those tribe bankers!

Wed, 12/15/2010 - 15:48 | 809013 RobotTrader
RobotTrader's picture

After they cover their gold and silver shorts, its going to be a huge bonus season.  Next year at The Hamptons is going to be a record.

Wed, 12/15/2010 - 15:49 | 809022 TonyV
TonyV's picture

I want to work for GS

Wed, 12/15/2010 - 16:54 | 809356 Sabibaby
Sabibaby's picture

That's like saying you want to work for Al-Qeada. That isn't something to be saying outloud.

Wed, 12/15/2010 - 15:59 | 809080 john milton
john milton's picture

robo change the girl pls, it does not arouse me anymore, apolozies if shes your wife

these guys are so complitely out, they dont realize what they are doing, but I am more confident that the day of reckoning just came a little closer

Wed, 12/15/2010 - 16:58 | 809377 Bob
Bob's picture

Sure, at this point resentment about the bonuses seems wasted; you can only hope they get everything they've earned.  All of it . . . compounded, please. 

Wed, 12/15/2010 - 15:48 | 809016 LongSoupLine
LongSoupLine's picture

They all need Columbian necktie bonuses.

Wed, 12/15/2010 - 15:49 | 809025 Ragnarok
Ragnarok's picture

By now I would have expected some of these guys to start "retiring" to nondescript, non-extradition treaty countries.  What gives?

Wed, 12/15/2010 - 15:51 | 809037 Raymond K. Hessel
Raymond K. Hessel's picture

Still a lot of looting to be done yet. God's work..

Wed, 12/15/2010 - 17:00 | 809381 Bob
Bob's picture

I wonder how many private pilots are staying at the airports these days, ready to fire up the engines on a moment's notice.

Wed, 12/15/2010 - 15:50 | 809029 Cdad
Cdad's picture

Wow!  In my wildest dreams, I did not think doing God's work was that profitable. 

This is good, probably in ways that I do not understand.  I'm sure the public will be thrilled just as I'm sure the criminal syndicate known as Wall Street won't give a rip about what the public feels on the matter.

Could this be the year of the Lear Jet Exodus from America?

Wed, 12/15/2010 - 16:33 | 809254 squexx
squexx's picture

It is if you are "the Chosen" and your god is Lucifer!

Wed, 12/15/2010 - 15:50 | 809032 TruthInSunshine
TruthInSunshine's picture

This was announced due to the new tax deal.

And because they know that no 'banker bonus tax' will now not be coming.

All is well as The Giant Vampire Squid resembles the 4th branch of government with its friends in high places in government and at the Private Federal Reserve.

Wed, 12/15/2010 - 15:52 | 809041 Sudden Debt
Sudden Debt's picture

don't they get a late payment fee on those bonuses?! ROBERY!


Wed, 12/15/2010 - 15:53 | 809044 Kaiser Sousa
Kaiser Sousa's picture

americans like greeks, italians, the irish and all the rest deserve all that their getting if they remain docile without resisting n every way and form getting FUCKED BY THE BANKERS... u r a bitch if u allow urself to b treated like bitchez....


Wed, 12/15/2010 - 15:58 | 809064 DB Cooper
DB Cooper's picture

Our Greek protests should start outside Lloyd's house.

Wed, 12/15/2010 - 15:59 | 809082 Raymond K. Hessel
Raymond K. Hessel's picture

Which one?

Wed, 12/15/2010 - 16:04 | 809113 DB Cooper
DB Cooper's picture

All of 'em - that way everyone in the country won't have to travel too far and we can save gas for the important stuff.

Wed, 12/15/2010 - 16:00 | 809083 pitz
pitz's picture

Tell me, why the common man on the street, who has some savings and can support himself, would work even a tiny bit more than necessary, simply to have his productive surplus stolen from him and given to these assturds?


Wed, 12/15/2010 - 16:29 | 809238 centerline
centerline's picture

Ah, the hallmarks of the -isms without actually admitting we are one!  But that would be unpatriotic of course.  LOL.

Wed, 12/15/2010 - 16:10 | 809142 squexx
squexx's picture

Look at all those names from the "Evil Tribe!" Don't fly a plane into an IRS, fly it into a Sin-agog!

Wed, 12/15/2010 - 16:50 | 809339 Terminus C
Terminus C's picture

Brilliant plan dip shit.  Lets kill average people because of their religion.  These bankers may all be jewish and they might all need to be hung from lamp posts but inciting random race violence does you no justice.

If this is an issue with the Isreali governmental leadership then we need to deal with that as well.  For now, "jump you fuckers!"

As for you Squexx... stfu

Wed, 12/15/2010 - 17:28 | 809472 squexx
squexx's picture

Hey Terminus, yer mom! Aim those planes! And STFU yourself, you syphilitic dick drip!

Wed, 12/15/2010 - 16:13 | 809168 johngaltfla
johngaltfla's picture

In an unofficial statement released by the Squid:

"It's a good thing. At least we didn't rape nuns."

Wed, 12/15/2010 - 16:23 | 809209 TruthInSunshine
TruthInSunshine's picture

And on the 15th of December, in the Year of our Lord 2010, the Giant Vampire Squid, glistening in its rapaciousness, said unto the Plebes: "All your labor and taxes are belong to us, for we have The Bernank & your politicians on our side. And if The Bernank & your politicans be with us, who can be against us?"

And so it was.

Wed, 12/15/2010 - 17:10 | 809422 TexDenim
TexDenim's picture

Where are they investing all this loot? Not, surely, in US equities?

Wed, 12/15/2010 - 17:34 | 809507 Fredd00
Fredd00's picture

Jump you fuckers!

Wed, 12/15/2010 - 19:27 | 809916 dogismyth
dogismyth's picture

I wonder how much cash they carry on themselves?  Think they're worthy of a fleecing?

Wed, 12/15/2010 - 19:31 | 809939 Sub Dude
Sub Dude's picture

But don't forget, they must pay lots of taxes, right? More than you and I, right?

"The company’s effective income tax rate dropped to 1 percent from 34.1 percent, New York-based Goldman Sachs said today in a statement."




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