Goldman Sachs' (GS) Bonus Pool Could Reach $16 Billion
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Goldman Sachs (NYSE: GS) CEO Lloyd Blankfein is in an interesting position, Goldman Sachs has done well and has built a significant bonus pool, but Blankfein does not want to face the embarrassment of paying his employees record bonuses.
In this economic climate, there would likely be an uproar from the public and government officials if Goldman Sachs awards their employees record bonuses. Blankfein is struggling to figure out how to pay his employees in a way that keeps them happy, while avoiding another round of public outrage like it experienced this past summer, the NY Post reported.
According to the Post, Goldman's human-resources department is looking at a number of changes to employee compensation, including imposing longer vesting periods for stock options. Also under consideration is paying top executives' bonuses almost entirely in stock in order to avoid making such large cash payments.
Typically, a CEO would happy about his company doing so well that it can can afford to give such large bonuses, but for Blankfein another amazing quarter represents more of a headache, as the firm's success has been met with ridicule by most of the public.
Goldman took $10 billion in government rescue funds to help it stay afloat last year as the credit crisis hit everyone on the Street, but it has recovered the quickest, leading some to question why the Government didn't get more in return for giving Goldman the essentially 'free' money.
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In this economic climate, there would likely be an uproar from the public and government officials if Goldman Sachs awards their employees record bonuses. Blankfein is struggling to figure out how to pay his employees in a way that keeps them happy, while avoiding another round of public outrage like it experienced this past summer, the NY Post reported.
According to the Post, Goldman's human-resources department is looking at a number of changes to employee compensation, including imposing longer vesting periods for stock options. Also under consideration is paying top executives' bonuses almost entirely in stock in order to avoid making such large cash payments.
Typically, a CEO would happy about his company doing so well that it can can afford to give such large bonuses, but for Blankfein another amazing quarter represents more of a headache, as the firm's success has been met with ridicule by most of the public.
Goldman took $10 billion in government rescue funds to help it stay afloat last year as the credit crisis hit everyone on the Street, but it has recovered the quickest, leading some to question why the Government didn't get more in return for giving Goldman the essentially 'free' money.
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