Goldman Sachs CEO Lloyd Blankfein is in a pickle. How do you pay huge bonuses right after publicly declaring that Wall Street comp is too high?
Just a few weeks ago he publicly ranted: “Compensation continues to generate controversy and anger…And, in many respects, much of it is understandable and appropriate. There is little justification for the payment of outsized discretionary compensation when a financial institution lost money for the year.”
The New York Post says the bank’s HR department is scrambling to come up with a solution. Possibilities include imposing longer vesting periods for stock options. Top executive bonuses may be paid entirely in stock.
Of course, that last aspect is basically pure PR. Ask Lehman and Bear shareholders whether it helped that top brass had so much personal wealth in company stock.