Last year, the average Goldmanite earned $662k. In 2006, he/she earned $623k. And in 2005, the average was $498k. Now that the firm has been recapitalised by the US government, such jaw-dropping bonuses could be a thing of the past.
According to Bloomberg, Goldman is one of nine banks which will receive $125bn from the US Treasury.
Participating banks will be obliged to accept restrictions on executive pay. Lloyd Blankfein, who last year earned $74m in salary, bonus and other inducements, is likely to be most adversely affected by the restrictions. But having had state cash foisted upon it, it seems unlikely that Goldman will be free to pay as handsomely as usual for some time to come.
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