Goldman Sachs will not give Cash Bonuses

Published on Thursday, 10 December 2009 13:44 Written by Gerard Lerod

New York, Dec 10^th (TradersHuddle.com) – Goldman Sachs group (NYSE:GS) released a press release stating that its top executive will  not receive cash bonus this year, and that 100% of the bonus will be given in restricted stock.

Bonuses represent the vast majority of senior management’s compensation and are directly tied to Goldman’s performance. Goldman has been facing public outrage after setting aside close to $17 billion for year-end bonuses.

The criticism stems from Goldman receiving $10 billion of taxpayer money as a bailout during the financial crisis, which helped the banking giant weather the crisis, and return to very strong profits for the past two quarters, with net income in excess of $3 billion.

Goldman employees were on pace to earn on average $717,000 per person in 2009, which puts them at odds with main street that is still struggling with the recession and high unemployment.