This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Goldman Exec Bonuses Counter Wall Street's 'New Normal'

NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) Chief Executive Lloyd Blankfein is set to see his stock compensation rise sharply, in a bonus that reflects a sharp recovery in the shares and earnings of the standalone investment bank in 2012.

The move, along with rising stock awards for top lieutenants such as outgoing CFO David Viniar and COO Gary Cohn, may indicate Goldman's thinking of executive pay levels in a more normal earnings environment.

Still, the stock awards could conflict with a belief that Goldman's is poised for a tighter management of its expense, which impressed investors in fourth quarter earnings released on Wednesday.

According to a set of filings released to the Securities and Exchange Commission, Goldman chief executive Lloyd Blankfein will get 94,320 restricted stock units that vest over a three year period that can't be sold until 2018. At current share prices, the award is worth roughly $13.3 million after Goldman's near 40% stock surge in the past 12 months.

Blankfein's stock bonus is nearly double his stock award in 2011, when the CEO was given a stock bonus worth roughly $7 million, on the heels of a disappointing year for Goldman. Friday's stock award, however, is similar to Blankfein's 2010 stock earning of $12.6 million, according to SEC filings.

Retiring CFO Viniar and current COO Cohn will receive 85,136 in restricted stock awards, Friday SEC filings show. Meanwhile, incoming CFO Mark Schwartz will receive an award of 37,428 shares.

In fourth quarter earnings, Goldman Sachs was able to impress investors with higher than expected earnings growth and flat expense that pushed overall expense ratio's well below 40%, exceeding analyst estimates.

Generally flat expense figures reflected a 6% increase in overall employee compensation and benefits to $12.9 billion, and a 3% decline in headcount over 2012. Non-compensation expense fell 4% in 2012 to $10 billion, Goldman said in fourth quarter earnings.

Goldman still hasn't detailed Blankfein or any other executive's cash bonus, however, a Bloomberg News report, citing unnamed sources, notes that stock compensation may represent 70% of total payouts, indicating Blankfein could receive a $5.7 million cash bonus.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
GS $191.27 0.00%
JPM $61.97 0.00%
AAPL $129.36 0.00%
FB $79.60 0.00%
GOOG $573.64 0.00%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

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