Tags: goldman sachs | blankfein | stock bonus | pay

Goldman Increases Blankfein's Stock Bonus 11 Percent to $14.7 Million

Friday, 31 Jan 2014 07:46 AM

Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein, the highest-paid head of a U.S. bank for 2012, got an 11 percent larger stock bonus for his work last year.

Blankfein, who also serves as chairman, received 88,422 restricted shares on Jan. 28 valued at $14.7 million, according to a regulatory filing. Blankfein, 59, had a $2 million salary, and the firm will disclose details of his cash bonus and long-term incentives later this year.

JPMorgan Chase & Co. and Morgan Stanley boosted stock awards for their CEOs this month after an improving U.S. economy drove up bank shares in 2013. Goldman Sachs had an 11 percent return on equity last year, topping its largest Wall Street rivals, while cutting pay costs amid revenue that was little changed. The stock jumped 39 percent in the year, more than the 33 percent climb in the S&P 500 Financials Index.

Blankfein is getting shares favored by less than a quarter of the Wall Street analysts who track Goldman Sachs. Eight analysts say the stock is a buy, 22 call it a hold and four give it a sell rating, according to data compiled by Bloomberg. Restricted shares typically have been the largest component of the CEO’s pay since the financial crisis.

His total compensation a year ago amounted to $26 million, including a $5.7 million cash bonus and a $5 million long-term incentive tied to performance targets. The package was his biggest since he set a Wall Street pay record of $69 million in 2007, his first full year as CEO. He took no bonus for 2008 after the financial crisis hit.

Dimon’s Raise

James A. Johnson, the former head of Fannie Mae and the longest serving member of Goldman Sachs’s board, leads the compensation committee. The New York-based company won approval from 87 percent of shareholders for its compensation plan at the last annual meeting in May.

Blankfein said in November that his firm, the U.S. bank most reliant on trading, can boost returns without a major strategic change and remains poised to benefit when global growth picks up. Goldman Sachs allocated 37 percent of revenue for compensation last year, the second-lowest figure as a public company, helping it boost net income by 8 percent.

JPMorgan, the largest U.S. bank, increased Chairman and CEO Jamie Dimon’s total pay 74 percent to $20 million, including $18.5 million in restricted stock. The board said it took into account long-term performance in addition to the mounting legal costs that broke the New York-based firm’s string of record profits. Pay for Dimon, 57, was highest in 2007 at $49.9 million, including special stock awards.

Morgan Stanley, the sixth-largest U.S. bank by assets, paid 55-year-old Chairman and CEO James Gorman $5.1 million in stock for 2013, almost double his award a year earlier. The New York-based firm hasn’t yet disclosed his cash bonus and long-term incentives.

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Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein, the highest-paid head of a U.S. bank for 2012, got an 11 percent larger stock bonus for his work last year.
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Friday, 31 Jan 2014 07:46 AM
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