Lloyd C. Blankfein, the chief executive of Goldman Sachs, had a rough 2010. But at least he got a raise: his bonus increased by $3.6 million, according to a regulatory filing.
The firm’s board granted restricted stock valued at $12.6 million to Mr. Blankfein and other senior executives, including Gary D. Cohn, the firm’s president. The board also approved a new annual base salary of $2 million for its chief executive, up from $600,000. Mr. Cohn and others will see their base salaries increase to $1.85 million, according to the filing on Friday.
With his previous salary of $600,000, Mr. Blankfein’s 2010 compensation comes to $13.2 million. Senior executives often receive part of their compensation in cash, but Goldman did not release details on this component of Mr. Blankfein’s compensation.
In 2009, amid a widespread public outcry over sky-high pay on Wall Street, Mr. Blankfein and other senior Goldman executives received compensation packages valued at $9 million each. In 2007, the year before the financial crisis, Mr. Blankfein made $68.5 million.
The lowered bonuses in 2009 were not the only compensation change to come out of the financial crisis. Most financial firms also increased the base salaries of employees, a move regulators hoped would cut down on excessive risk-taking. While Mr. Blankfein’s base was only recently increased, Goldman had earlier raised base salaries for other employees. The base pay for Goldman managing directors was recently increased to $500,000, from $300,000.
Still, not everyone at Goldman got a raise in 2010. Last year the firm set aside $15.38 billion for pay, down 5 percent from the $16.19 billion it earmarked for compensation in 2009. The ratio of compensation to revenue was 39 percent. That is up from a record low of 35.8 percent in 2009. The current compensation pool amounts to pay of more than $430,000 a person.
Goldman had a challenging 2010. Its stock performance was relatively flat, and it reported earnings of $8.35 billion, down 37 percent from 2009. But the firm did better than many of its rivals, which were still rebuilding from the financial crisis.
Goldman’s reputation, nonetheless, took a severe blow last April, when the Securities and Exchange Commission filed civil fraud charges against the firm, saying that it had duped clients by selling mortgage securities that were secretly designed by a hedge fund firm to cash in on the housing market’s collapse. The day the charges were announced, Mr. Blankfein has said, was “one of the worst days in my professional life.”
The firm paid $550 million to settle the charges. It did not admit or deny wrongdoing.
Mr. Blankfein isn’t the only Wall Street chief to get a raise for his work in 2010. JPMorgan Chase has not yet announced the pay of its chief executive, but Jamie Dimon is expected to earn as much, if not more, than the $17.5 million he took home in 2009.
This month, Morgan Stanley’s board awarded its chief executive, James Gorman, stock and options valued at $7.4 million. But this represented only the equity portion of Mr. Gorman’s pay package; the cash component will be announced later this year. Mr. Gorman, in his first year as chief executive of Morgan Stanley, will earn less than the $15 million he took home in 2009, when he was the firm’s co-president, according to a person familiar with his compensation but not authorized to speak publicly about it.
Citigroup’s chief executive, Vikram S. Pandit, after nearly two years of earning $1 a year while he tried put the bank back on track, was recently awarded a $1.75 million salary.
At Goldman, David A. Viniar, the firm’s chief financial officer, and the vice chairmen J. Michael Evans and John S. Weinberg also received stock valued at $12.6 million, regulatory filings show. Their base salaries also rose to $1.85 million.