Goldman Gives Paulson $45 Million Bonus, Blankfein $50 Million
Goldman Sachs reportedly gave Treasury Secretary and former Goldman chief executive Henry Paulson a $45 million bonus this year, on top of $53.4 million salary and bonus it gave current CEO Lloyd Blankfein for fiscal year 2006.
Paulson, who left as Goldman CEO to join President Bush's Cabinet in July, was awarded close to $45 million in stock, Dow Jones reported.
Blankfein's bonus comprises $27.2 million in cash with the rest of it in equity grants that become exercisable in January 2010, although the underlying shares are subject to transfer restrictions until January 2011.
One person with knowledge of Blankfein's pay package says the firm is only required to release the stock portion of his pay, but Goldman has chosen to disclose the cash portion as well as a nod "to good corporate governance," CNBC's Charlie Gasparino said
Other sources on Wall Street, however, say the reason Goldman released all the bonus information is because it has been embarrassed by the publicity surrounding the huge compensation packages this year, and would like to end the speculation that has become tabloid news, CNBC's Gasparino added.
CNBC reported that in addition to Blankfein's bonus package, as many as fifty Goldman executives would each receive $25 million or more for their work in 2006.
Blankfein is the highest-paid CEO on Wall Street, ahead of people like Morgan Stanley's John Mack, who recently received $40 million in stock for 2006. Blankfein was eligible to make as much as $87 million based on a firm-wide compensation formula.