This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Goldman's Bonus Plan Draws More Fire

Stocks in this article: GS

NEW YORK ( TheStreet) -- Goldman Sachs (GS) may have forgotten that investors are taxpayers, too.

Some large Goldman shareholders are reportedly unhappy with the firm's plans to pay big bonuses this year -- a rare example of Wall Street and Main Street being on the same side of an issue.

From bonus and dividend payments to the amount of leverage and lending they're engaged in; the government has kept a firm grip on the banking sector over the past year. It has used both carrots and sticks to achieve its goals, with varying success -- financial incentives to rework bad mortgages have been effective, but its notion to create a "pay czar" may have been doomed since the brainstorming session for his title.

Banker pay has been a lightning rod, not just for the seven firms whose compensation is closely monitored by the czar, Kenneth Feinberg, but also for healthy, profitable banks like Goldman that are struggling to move past the bailout stigma. Feinberg has flexed his muscle already, nixing some pay practices at American International Group (AIG), Citigroup (C), Bank of America (BAC) and others.

The banking industry, and many investors, appeared as though they just wanted to get past the compensation "scandals." They were content with revisions that tied compensation more closely to long-term performance; for example, by weighting pay in stock that doesn't vest for a few years.

But on Friday, the Wall Street Journal reported that "some of the largest shareholders," who hold tens of millions of Goldman shares, are unhappy with its pay practices, and have been urging management to reduce its 2009 bonus pool. The news was a headscratcher, since Goldman appeared to have done everything right from a stockholder point of view.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs