Is Goldman Sachs (GS) CEO Lloyd Blankfein snubbing Tim Geithner?
It sounds as though he favours the type of regulations proposed by the Europeans, which focus on pay, rather than the the framework favoured here, which emphasises capital requirements and taxes on size.
Bloomberg: Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said multiyear guaranteed contracts for bankers should be banned and the “clawback” of pay should be permitted to discourage excessive risk-taking.
The portion of pay in stock should rise “significantly” as compensation increases, senior bankers should get most of their pay in deferred equity and top executives should be required to retain the bulk of the equity until they retire, Blankfein also said at a banking conference in Frankfurt today.
“Compensation continues to generate controversy and anger,” Blankfein said. “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.”