Notes of Note from John F. Ince

Lloyd Blankfein, CEO of Goldman Sachs, took home $125 million in cash bonuses over the past decade, Bloomberg reports.Shareholders, however, havent been quite so lucky.Even though Goldman has outperformed its peers over Blankfeins tenure, Bloomberg points out that one-year certificates of deposit and 10-year Treasury bonds purchased in September 2000 beat Goldmans total return over the same period. The logic behind lavish CEO pay depends on maximizing returns for shareholders, but Bloomberg notes that the S&P 500 Financials Index, which includes 80 companies, has dropped 49 percent in the past ten years.Blankfein, who paid $26 million in 2008 for a condo in the Robert Stern-designed 15 Central Park West building in Manhattan, and who last month sold his previous apartment at 941 Park Avenue for $12.15 million, has overseen a period of relative strength since becoming CEO in June 2006.Even as the financial world nearly collapsed around it, Goldman has remained strong, or gotten even grown stronger. When Goldman settled with the S.E.C. for $550 million in July, the perception was that the bank and its CEO, who joined the company back in 1981 when it bought his then-employer J. Aron, had gotten off easy.Transparency regarding bonuses has been limited. This summer, the financial community braced for embarrassment in anticipation of a report by U.S. pay czar Kenneth Feinberg disclosing the total bonuses Wall Street paid during the beginning of the bailout f

via Lloyd Blankfein Took Home $125 Million In Bonuses In Last 10 Years, But Shareholders Havent Been So Lucky.


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