Tags: Goldman Sachs Bonuses

Goldman Sachs Ties Bonuses to Long-Term Profits

Sunday, 26 Dec 2010 02:17 PM

Goldman Sachs Group Inc. will tie the bonuses of top executives more closely to the company's financial performance.

The investment bank, based in New York, said in a regulatory this week that bonuses will be linked to financial benchmarks that might include return on equity, earnings, or the market price of shares or other Goldman securities.

The plan applies to unspecified "key employees" starting this year. It gives Goldman the ability to take back bonuses from employees who violate company rules.

Goldman says the plan aims to "align compensation with long-term performance in a manner that does not encourage imprudent risk-taking."

The financial overhaul law passed this summer prohibits pay that would encourage excessive risk.

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