Friday, December 11, 2009

Goldman Sachs Top 30 To Get Stock Instead Of Cash Bonuses

After a seemingly never ending string of bad PR, Goldman Sachs seems to have finally gotten one right. Facing the potential for never-ending scrutiny over paying out $19 Billion in bonuses this winter, the firm has decided that the top 30 beneficiaries will be paid only in restricted stock that cannot be sold for 5 years. Additionally, the bonuses will contain "claw back" provisions should any of those executives take extraordinary risk (at least risk that results in losses). I know this move has created a stir in the real estate community with unfounded concern that this move will effect the market. But really, what are we talking here, 30 people? Sure, they are very rich people, but how many of them need a new place? End result, a few, and I mean maybe single digits here, that won't be in the market for a place at 15 CPW.
Goldman Sachs Scraps Cash Bonuses For Top 30 Execs (L.A. Times)
Goldman Blinks On Bonuses (WSJ)

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