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Goldman CEO to Get $70 Million Paycheck: FT

Goldman Sachs Chairman and Chief Executive Lloyd Blankfein is likely to get a 30 percent pay rise this year to about $70 million, despite the liquidity squeeze which has seen shares in the banking sector tumble, the Financial Times reported on its Web site.

Lehman Brothers , set to report results later today, will award its CEO Dick Fuld $41 million in restricted stock, taking his total compensation for this year at $50 million, the paper reported.

Investment banks have been hardest hit by the credit crunch as revenue from fixed income fell. Lehman's profit is forecast to fall 16 percent and revenue expected to drop by 6 percent. Its shares fell more than 20 percent this year.

But both Lehman and Goldman came out of the financial markets turmoil better off than their peers by putting successful hedging strategies in place.

Their activities could now come under closer scrutiny, the FT said, because of the high bonuses paid to their executives at a tough time for the industry.

Goldman's return on equity rose 32 percent over the first three quarters of the year and its shares rose 9 percent this year despite the problems in the banking sector.

Blankfein's final remuneration has yet to be set by the bank's compensation committee, insiders told the FT.