Goldman Sachs hands out $16.5 Billion in bonuses, average pay = $622,000

[Regis Philbin]

It's amazing they could make that kind of money in this horrible Bush economy. Must have some really smart executives there...


:eek: http://www.nypost.com/seven/12132006/news/regionalnews/16_bil_sachs_of_loot_regionalnews_roddy_boyd_and_zachary_kou we.htm

$16 BIL
SACHS OF LOOT

RECORD BONUSES TO WALL STREETERS

By RODDY BOYD and ZACHARY KOUWE

December 13, 2006 -- Wall Street giant Goldman Sachs is set to throw gigantic bags of money at its bankers, traders and stockbrokers this year - lavishing them with more than $16.5 billion in bonus loot, the most ever doled out by a Wall Street firm.

Most of the Wall Street trading houses had a great year - but Goldman's was spectacular, and its blockbuster numbers generated blockbuster bonuses for the fat cats.

Between regular salary and bonuses, the average pay of Goldman employees will be a mind-numbing $622,000 this year - and that includes all the low-end workers.

At the top end of the pay scale, it has been reported that Goldman was likely to pay a "golden 25" managers, bankers and traders at least a cool $25 million each.

But a source close to the firm told The Post that some of the top performers may actually get four times that.

The $100 million bonus babies are in charge of making big bets with Goldman's money on the direction of the prices of commodities, including oil and natural gas. And this year, they won big.

All that money hitting the NYC market all at once should be a big boost to their economy...and their tax base.

[Richard Tafoya]

A New Yorker responds:
http://www.huffingtonpost.com/jonathan-tasini/goldman-sachs-owes-you-mo_b_36328.html

As a New York City taxpayer, I want a refund from Goldman Sachs. And you deserve one, too, before the company cuts checks to shower $16 billion in bonuses throughout its executive suites. We are all paying for the enrichment of the investment bankers and rainmakers who are going to pocket tens of millions of dollars.

...

In the summer of 2005, Goldman Sachs successfully extorted money from New York, threatening to leave the city unless it received tax breaks and low-interest bonds. It did so in a fairly ugly way. Using the specter of September 11th as a club, the company pocketed an unbelievable deal: $1.65 billion in low-interest, triple-tax-exempt Liberty Bonds, enabling the firm to save as much as $9 million a year in financing costs, which would save Goldman about $250 million over the life of the bonds. If that wasn't enough, the city also threw $115 million in sales and utility tax breaks at the company, in return for a commitment to maintain its headquarters in Lower Manhattan and employ more than 9,000 people through 2028; those breaks could rise to as much as $150 million if Goldman adds 4,000 new jobs by 2019.

...

So, here we are now: a company that is taking money out of my pocket and yours is setting aside $16.5 billion in cash to pay out as bonuses--an average pay day of $622,000 per worker. Of course, average really is misleading--the top dogs at the company will reap the big windfalls (CEO Lloyd Blankfein is reportedly in line to cash a check of up to $50 million), with the support staff probably getting a free Metro Card or maybe a nice holiday gift basket, at best.