Goldman Sachs Has Considered Moving Up Bonus Payouts
In a break from recent practice, Goldman Sachs has considered paying out 2010 compensation before the end of the year, rather than early next year, according to people familiar with the matter.
That move, if Goldman were to make it, would be one way to combat the uncertainty hanging over income tax rates in 2011 and beyond by allowing employees to take advantage of the current tax rates. But an early payout could also be perceived by critics of the firm as a way to enrich Goldman employees by gaming the system.
A Goldman spokesman declined to comment on the firm’s compensation plans.
Historically, say people close to the firm, Goldman at times paid out year-end bonuses before December 31, partly in order to help employees take advantage of more favorable tax rates. » Read More