Goldman CEO gives up 2008 bonus

While in theory I agree with you. Governmental salary caps are communist.

However, I wouldn't mind being hired at 50,000 to oversee the disbursall of the funds appropriated for the bailout. I lost my job at a hedge fund.

No matter what you do to control big business they will find a way to get around it. It's in their blood.

dog

Too true

Not really.  You must realize that these bonus and options are in written contracts and the employers themselves can't ask people to give up what they promised them.  That these people did it of their own freewill is commendable and yes, they still earning big salaries which carry huge responsbilities.

Maybe you should check out what our government officials get paid and their benefits.  Not to mention the payments they have been getting in kickbacks such as the top three people on Fanny Mae's list!  These guys don't get full salary retirments like Nancy Pelousi will.........she's rich, born rich, married rich........why isn't she donating her service to our country......maybe the President should call in all the Senators and Congressman and ask them to give up their salaries and freebies!  Our country needs their salaries too!

Firstly, Last, I'm not American so I can't ask what "our" government officials are taking home, but I do take the point.  However....

Are you telling me that the contracts say "You will get a bonus of $54 million, although it's not really a bonus because it's not linked to performance in any way"?  If so, it's not a bonus it's a salary.  Bonuses can only ever be truly considered bonuses if they are linked to performance.  Given that the performance has been abysmal, I see no problem with telling them that they cannot have it.

Well, who agreed to give them those bonuses?  The Board of Directors and yes most bonuses are based on performance.  These guys did perform in the past to high expectation and beyond.  Bonuses are computed on the bases of profits percentagewise.  They did not say he made $54M this year because they don't know what he has made in bonuses so far this year.  Last year we all thought everything was going along just fine.

But if a company offers someone this kind of bonus system they do it because they expect to be making outlandish profits and you need to remember people don't pay their employees more than themselves.   So, what did the Board Members make last year?  That isn't even being told.  They are blaming their own mismanagement on the CEO's ........ got to point the finger at someone else!

So what has happened is that with the failing economy the Board of Directors didn't write any safeguards into the contracts they offered these men and suddenly they are still eligible to make their $600,000 salaries which the Board doesn't like one bit.  The Bonuses would be less this time as would the amount of stock option they are eligible to receive........in fact there may not be any bonus to be recieve as performance of their companies is at a halt.

The salary is fine, to my mind. 

They did not say he made $54M this year because they don't know what he has made in bonuses so far this year.  Last year we all thought everything was going along just fine.

We all thought so, but we didn't know what they did.  The company has performed appallingly recently, so no bonus is applicable if it is truly a bonus.

So, what did the Board Members make last year?  That isn't even being told.  They are blaming their own mismanagement on the CEO's ........ got to point the finger at someone else!

The board does not run the company day-to-day, the CEO does.  He is exactly where the buck should stop.

did these guys honestly think it would have been okay to take a bonus with things the way they are? I can see the meeting where they were trying to figure out a way to sly it past everyone that they were taking bonuses while cutting jobs. That would have been interesting.

Yes the CEO runs the company day to day.  But the Board of Directors set his salary and he earned what they promised him in salary only so far this year unless they have paid quarterly bonuses.  As to a 2008 Bonus.....he may not have even been eligible to receive much of anything this year which has not been brought up.  That's true.

It is the Board of Director responsibility to make the biggest decisions even so.  He didn't just take over total control with no one overseeing what was happening.  He is, however, the one who everyone is blaming when the economy has caused major losses in their business. 

Everyone is so upset at what he made when the company was doing well that they haven't considered that now he may not get a bonus for 2008 and if he does it won't be anywhere near as much.

I don't know the specifics of this company, but very often the board does not draw a salary, or if they do it is a token.  The board is in place to represent shareholders, not to earn money.

We need to take away the power of the board.  The CEO usually runs shot-gun over them anyway.  (they give to the CEO whatever he/she asks for) and only believe the information he gives them.  He doesn't have personal finances in the company, they give him stock.

The people actually doing the work and actually accumulating those figures do not get paid near what the CEO does.  In fact, I'm trying to figure out WHAT DOES THE CEO DO to deserve so much money? 

We need to take away the power of the board.

The point of the board is to make decisions from an outsider perspective i.e. the shareholders.  This may not be happening in the right way, but I still think that oversight is required.  What would be good, in my opinion, would be to have worker representation on the board as well, so that shareholders and workers have a voice.

Then you'd need to be screaming at your Board Member who you signed a proxy to vote for you wouldn't you?  The CEO's are employees of the Board of Directors who are the ones controlling the CEOs salaries and stock options plus bonuses

Well they deserved it because they worked hard...right?

They take lots of Ambien and keep the drug companies going.

Probably so, although I absolutely don't feel sorry for them nor do I applause their gesture. I wish common sense would win over greed every time especially in those situations. I also agree with Stu-4803409, no job should be worth that much money.

They did the right thing.  It's a shame that even when someone finally does something right, many still pile on with the negative comments. 

You can't throw all people in one bucket.  Some of these folks may see a business and ethical need to make changes.  What is wrong with that?  Goldman is still standing, and that may be attributable to their management being a little better than some of their counterparts.

I resent the entire financial mess as much as anyone.  But let's be sure we know who we are throwing under the bus.  Many financial institutions did not make bad loans - they purchased investments that were sworn to be high quality that are now worth nothing (e.g. FNMA paper). 

This guy made more than a $1,000,000 per week last year for running his company nearly bankrupt.  Some say that his position carries huge responsibility and thus deserves this huge compensation.  Where is he taking responsibility?  He has recieved compensation in one year that will make him and his heirs rich for generations - meanwhile many of the people who had their pensions invested in his company are broke.  He should be discharged.

PS: Now I know why 100,000,000 Americans are out of work

exactly, i've said for about 3 years now (since things started taking a turn) that executives should take a step back, and use their exhorbatant salaries and bonuses to try and grow their businesses...you know...the way it worked back when the nation was...you know...growing.

Rockefeller, Carnegie, Archbold...

goldfish4obama,

Bush deregulation and tax cuts for the wealthy have sure put us in a good spot!  The Clinton years were the best in the last 40 because he understood that the economy grows from the bottom up.  The wealthy business owners can not make money if working class people do not have money too spend.  If I remember well I think EVERYONE did well under that philosophy.  Bush I lost because the Reggan economic theoryes did not work.  Twelve years after he took control the economy was so bad that the sitting president could not win re-election despite haviing won a major war that was widely supported by the public.  It is the same pattern today.  Trickle-down just does not work. 

Actually Tex, I already rue the day a dime was given to AIG...

That's what I was thinking as well...give me a 54 million dollar bonus just once and I'll work the rest of my days for free...give me a break!

Shawn...tell you what...we won't even be greedy....I will split it with you.

And your ???

Gee goldfish...didn;t mean to make you so crabby this moring. So here's a short version of my resume, ok.

1. I work...have since I was 16...no handouts.

2. Married 30 years...to boys 23 and 25, one a Marine.

3. Former police officer, I won't go into the former divisions of that, SWAT, etc.

4. Former military,

5. Put myself through law school.

6. Former State Attorney in my home State (prosecutor)

7. Now General Counsel for a Corporation.

I think I'll stop there so I don't board you but hopefully you can see I have never looked for a handout. I think I have contributed positively to society....and have not been contributory to being part of the executory management of a financial institution and withheld information from the public or ever let greed get the best of me.

I simply tried to point out that one years salary (54 million) is I think more than anybody is worth.

Hope you have a better part of the day...

goldfish....P.S. I don;t play the lotto...

Do something or become someone worthy of that pay, and it will happen. My guess, is you're just wishing someone will hand it to you. Stick with the lotto tickets. 

According to the New York Times, the chief executive of the failed Washington Mutual bank, Alan H. Fishman, is eligible for $19.1 million in compensation.

He is eligible for $11.6 million in cash severance and will get to keep a $7.5 million signing bonus, according to an analysis by James F. Reda and Associates. 

He held the job for 17 days.

You're right "goldfish"...what he did over that 17 day career was MORE THAN WORTHY of that type of payout.

Oh...and I own two small companies myself (working hard at them, not just feeding off of others)...and have worked in some capacity (going back to babysitting, mowing lawns, shoveling snow, and delivering newspapers) since I was about 12.

congrats Shawn...and good luck!

You can't make an all incompassing state like "everyone should give up bonuses"  A lot of companies give employees bonuses instead of salary increases.  The bonuses reward people during the good times but they don't get them during bad.  It's a company's way of rewarding people when business is good but not being tied to a higher salary when business is down.  There are all levels in the bonus system just like anything else.

Unemployment is high because Jimmy Carter pushed for NAFTA and did away with the import tax.  That was a safeguard to keep our industries competive price-wise with countries like China who now have taken our job because our labor costs make it impossible to make the same things cheap enough.  China who hates us enough to try to poison our children with their melamine and lead paint!

The execs. have already said they they would not take bonuses.  More than I can say for the fat cats on Wall Street.

To Last:

http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp  

Jimmy Carter wasn't in on NAFTA.   Even though he was a Socialist President and raised havoc on American workers and was by far the worst President we have ever had.  (By his accounts, it was G.W Bush, but so much for calling the kettle black). 

NAFTA was implemented in 1994 during the first Clinton Administration.

 Please read the above link. 

NAFTA doesn't send car companies or other Businesses to other countries; poor management sends companies to other countries.  Please read a book called, "Who moved my Cheese?" by Spencer Johnson.   It will show you how management thinks and what they will do to survive or not survive.  You will see the Big three Auto makers in there.  See if you can guess which group they are.   There has been some reports of NAFTA not being good for America, but you can look it up and make your own decision.  We get a lot of our food from other countries for which NAFTA was originally designed to do.  It also was designed to keep people in their own countries to get wealth and not to come here to America.

Nope!  They didn't cause this mess.  It's the House and Senate who did that with their pork programs and bad management.  It took them nearly 50 yrs but they finally got it done!  So should they be the ones trying to fix it with more pork programs and bad management like the bailouts they've passed without restricting the use of that money?

You want everyone to go to jail for working hard and making a good salary?  Send all the doctors to prison too!  Especially the Specialist who spent years in school to make big money.  Wow, spend all the plastic surgeons to jail!  You think a surgeon charging what they charge for some of these operations isn't ripping off the public?

Well, they are better than socializing health care.  Ask any Canadian!  Their taxes are far higher and they wait on long waiting lists for critical surguries......some even come to the US and pay their expenses themselves!

Last -

Absolutely correct.  All those twits out there with their comments and fears about Obama and socialism?  Capitalism is alive and well in the US.  It's each individuals choice as to what their future holds.  You want to grab for the brass ring - DO IT!  You want to grab for that gold ring - DO IT!  It's your choice.  Freedom, choice, opportunity - you want it - work for it - it's all there.  Plan your work - work you plan.  The American Way!

I don't know of any doctor that earns $1,000,000 per week.  As far as years in school - probably two years earning an MBA. This mess came about because of complicity between our republican law makers and their free market ideas and the businesses that they are supposedly regulating.  CEO compenastion went from 25 times workers compensation to more than 200 times average compensation in 20 years.  It's just crazy.

Redburn-

Agreed - BUT- the shareholders and the board state earnings and bonus by equation.  No one simply pulls a number out of the air - it's all relative.  It's the whole package.

Remember they are talking last year not 2008 and things weren't in this mess then.  The blame for their salaries lays squarely at the feet of the Board of Directors.  You all act like they wrote themselves blank checks and went on a spend spree with your money.  They payed income tax on every dime of what they made. 

Look around yourself.  How many people do you see living off Welfare who never worked and don't want to work.  How many of them are driving nicer cars than you are.  How many do you know who are getting disability checks that they didn't work for or deserve? 

You scream at the guys who went to school and worked their way up to this kind of pay level and you scream about the one who won't work............ 

This is a free country.  If you take away a person's right to make high salaries you want communism.  Unfortunately, that isn't as fair as anyone of think either.  Spread the wealth......... is Obama going to let a bunch of poor people live in his 1.65M home in Chicago? 

2 questions Last.  1) How much is too much? and 2) Morally how do you take that much after you lay of thousands of workers that combined don't cost the company as much in salary as your bonus?

I know of no one on welfare that wants to be there and drives a nicer car than I do.

I agree with you to some extent but you don't know what some of the people do give to the less fortunate.  You are assuming that they don't give anything and you may be wrong. 

Look at Warren Buffitt......he still lives in a modest home that he's had for nearly 50 years.  He gives a great deal to charities and recently auctioned off a dinner with him that sold for over $1M.......the money went to a fund for homeless people.  Gates gives huge amounts.  There are others less well-known

Don't tell Obama because the work he brags so about doing in the slums of Chicago was not free at all.

What I am saying is not all people who make big money don't give any back.  Good luck on the stimulus payment!  It sure won't come any time soon enough to even help any of us have a decent Christmas.  Thanks Nanci Pelousi, I'm sure you're reaping the AIG bailout with your hubby's big investment

Warren is advising Obama.

Frog Prince -I agree with you    AIG insured both end of the mortgage and got caught in the middle.  How stupid can you get!  They insured the bank's expense of a mortgage and turned right around and insured the buyer's mortgage for them.   So how can anyone figure that works.  They were betting no one would default!  Well, a bad economy sure put the shucks on that bet!

AIG has some very influential people connected directly to the Senate and they will get anything they want from them.  Talk about needing regulations on the money they gave them!  They gave all this funding to banks who are sitting on it and denying car loans too.  They are all protecting themselves...........some trickle down economy effect!