Goldman Sachs Group Inc.'s top brass decided to fall on their swords for the sake of the firm this weekend, as CEO Lloyd Blankfein and six of his deputies told the bank's compensation committee that they would forgo their year-end bonuses. Also taking a pass were CFO David Viniar, co-presidents Jon Winkelried and Gary Cohn, and vice chairmen J. Michael Evans, Michael Sherwood and John S. Weinberg.
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According to various published reports, Goldman's management thought it
was the right thing to do in light of the industry's upheaval and injection of
government funds. Blankfein, who received a $70 million bonus last
year, was well aware of the harsh spotlight that would be put on
whatever bonus he and the bank's top management received. Management's
thinking is likely that with those slated to get the largest bonuses
out of the picture, the year-end awards for their troops won't cause a
political firestorm.
The decision by Goldman also ratchets up the pressure on other large
banks to follow in its footsteps as they decide on their bonus pools
in coming weeks. Politicians will be closely watching Citigroup Inc., Morgan
Stanley and Merrill Lynch & Co. in the expectation of similar
decisions. Congress has lost no
time putting banks to task even though year-end rewards have been reduced from 2007's and thousands are getting laid off in the industry.
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George White
