NEW YORK - Goldman Sachs has become the first US bank to scrap 2008 executive bonuses in response to market events. The bank set a record for pay on Wall Street only last year. Chief executive officer Lloyd Blankfein and six deputies told the bank's compensation committee they would only take their standard salaries of $600,000 each. Blankfein's bonus was almost $70 million alone last year.
Banks have faced political pressure over bonuses since mounting writedowns, job cuts and the passing of the US Treasury's $700 billion bank bail-out bill. Last month, New York attorney-general Andrew Cuomo demanded pay information from the nine US banks associated with the government's Troubled Asset Relief Programme (Tarp). This scheme is now being played down in favour of capital injections in return for direct government shareholding in US banks.
More on Regulation
ABA calls for better ways to compare bank capital between countries
US regulator will pursue a quicker route to exempt foreign CCPs
ECJ decision means new problems for data preservation
Discussion crystallises over regulatory streamlining
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.