Bloomberg News

Blankfein’s Bonus Said to Surge 90% to Surpass Dimon’s

January 19, 2013

Goldman Sachs Group CEO Lloyd Blankfein

Blankfein, 58, who was awarded a record- setting $67.9 million bonus for fiscal 2007, received $12.4 million in compensation for 2011. Photographer: Peter Foley/Bloomberg

Goldman Sachs Group Inc. (GS:US) Chief Executive Officer Lloyd C. Blankfein’s bonus surged 90 percent, surpassing JPMorgan Chase & Co. (JPM:US) CEO Jamie Dimon’s pay for the first time since Blankfein’s record-setting award for 2007.

Blankfein, 58, was granted $13.3 million in restricted stock that comprises about 70 percent of his total bonus, according to a person with knowledge of the matter. On that basis, the total is about $19 million including $5.7 million in cash, up from a $10 million stock-and-cash award for 2011. Blankfein, who is also the bank’s chairman, receives a $2 million salary.

A $21 million total compensation package would be Blankfein’s highest since his $68.5 million record in 2007, when Goldman Sachs’s earnings per share were 75 percent higher. Dimon, 56, who leads the biggest U.S. bank by assets, had his pay slashed in half to $11.5 million because of a trading loss even as JPMorgan reported a third year of record profit.

“In the world of CEOs, it’s a major statement when you’re the highest paid,” said Jeanne Branthover, head of the financial-services practice at Boyden Global Executive Search Ltd., a New York-based recruiting firm. “They are giving a message that, ‘We’re Goldman. We continue to do well.’”

Dimon’s pay cut was announced on Jan. 16 when the bank issued a 129-page report detailing management lapses behind the firm’s biggest-ever trading loss. “Mr. Dimon bears ultimate responsibility for the failures that led to the losses,” JPMorgan said in the report. Dimon, who is also chairman of the New York-based company, “has accepted responsibility.”

Blankfein’s Deputies

The latest stock bonus was also the first time in five years that Blankfein was awarded more than senior deputies including President Gary D. Cohn, 52, and Chief Financial Officer David A. Viniar, 57, who is retiring this month after 32 years at the firm.

The biggest restricted-stock award was to Michael S. Sherwood, 47, a London-based vice chairman. He was awarded 109,461 restricted shares, worth $15.4 million. While his cash bonus wasn’t disclosed, it will probably be smaller than other executives’ because of European regulations that limit cash payouts, according to the person familiar with the matter.

Goldman Sachs, the fifth-biggest U.S. bank by assets, reported its first revenue gain in three years, as the New York- based firm’s investments almost tripled in value and investment banking fees climbed. The stock (GS:US) rose 41 percent in 2012, the first annual increase since doubling in 2009.

Blankfein also boosted profit (GS:US) by paring the portion of revenue paid to employees to 38 percent from 42 percent.

Restricted Shares

Blankfein got 94,320 restricted shares worth $13.3 million at the $141.01 closing price on Jan. 17, according to a filing. His cash bonus won’t be disclosed until the bank issues its annual proxy statement, which is typically in April. He was awarded $7 million in stock and $3 million in cash for 2011.

Goldman Sachs disclosed restricted-stock awards for 11 other senior executives in filings. Cash bonuses aren’t scheduled to be disclosed until the firm files its proxy statement.

Cohn and Viniar, who both get salaries of $1.85 million, were each awarded 85,136 restricted shares, worth $12 million at the Jan. 17 price. Viniar will join the board of directors after he retires at the end of the month.

James A. Johnson, the former Fannie Mae CEO who is the longest-serving member of Goldman Sachs’s board, is chairman of the board’s compensation committee. Johnson was re-elected to the board last year over public opposition from shareholder Ruane Cunniff & Goldfarb Inc.

JPMorgan Awards

JPMorgan raised the average stock award for Dimon’s operating committee by 6.6 percent, according to regulatory filings yesterday. The 11-person panel collected $54.9 million in restricted shares plus stock options for their performance in 2012. That compares with $60.9 million for 13 people in 2011.

The following are restricted stock awards to Goldman Sachs’s named executive officers, based on regulatory filings made public on Jan. 18.

Executive                Number         Award Value
Name                     of Shares      at $141.01/Share

Lloyd C. Blankfein       94,320         $13.3 Million
Gary D. Cohn             85,136         $12.0 Million
David A. Viniar          85,136         $12.0 Million
Michael S. Sherwood      109,461        $15.4 Million
J. Michael Evans         75,208         $10.6 Million
John S. Weinberg         75,208         $10.6 Million
Mark Schwartz            37,428         $5.28 Million
Sarah Smith              36,594         $5.16 Million
Gregory K. Palm          29,998         $4.23 Million
John F. W. Rogers        28,509         $4.02 Million
Edith W. Cooper          26,382         $3.72 Million
Alan M. Cohen            24,254         $3.42 Million

To contact the reporters on this story: Christine Harper in New York at charper@bloomberg.net; Dawn Kopecki in New York at dkopecki@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $184.04 USD
    • 0.06
    • 0.03%
  • JPM
    (JPMorgan Chase & Co)
    • $59.99 USD
    • 0.05
    • 0.08%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus