Proving you just need a little patience, Lloyd Blankfein saw his compensation of 2013 soar to $23 million for his performance at the top of the world’s largest investment bank. And that’s not all, Lloyd Blankfein remains in line for an additional $6 million if the firm hits targets it has set for the coming years.
Lloyd Blankfein not the only one receiving compensation increases
The CEO is not alone in receiving major compensation increases at Goldman Sachs Group Inc (NYSE:GS) this year, Gary Cohn, Goldman’s president, and Harvey Schwartz, its finance chief, each received $21 million in salary and bonus. John Weinberg, a vice chairman, was paid $18.5 million. J. Michael Evans, another vice chairman who retired in February, collected $15 million.
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Even without the $6 million in potential future earnings, his compensation dwarfs his counterparts at the other five domestic “giants,” but as others have repeatedly said, Goldman has been showing better returns than the other five banks.
While profits have fallen from Goldman Sachs Group Inc (NYSE:GS)’s core businesses: currency, commodities, and fixed-income trading, Goldman has continued to practice cost-cutting measures. This cost cutting, seemingly, doesn’t affect its upper-tier of executives.
“Lloyd Blankfein continued to demonstrate impressive leadership, drive and a keen focus on serving our clients and inspiring our people,” the Goldman board’s compensation committee wrote in Friday’s filing. “He successfully navigated the competitive landscape this past year, driving our commercial performance.”
While at the surface that may seem like an ungodly amount of money, his compensation for 2007 was $70 million and his 2013 package was the most he had seen since the financial crisis hit.
In 2013, he earned a $2 million salary. Restricted shares worth $14.7 million and $6.2 million in cash comprised his year-end bonus with the long-term goals still not applicable.
This number represents the calculation of reporting executive pay by the Security and Exchange Commission which counts the calendar year. This means that his 2012 bonus that was paid out in 2013 is reflected rather than his bonus for 2013 which was paid this year and will be added to his salary and stock at the end of 2014.
With Goldman Sachs Group Inc (NYSE:GS) riding high it’s unlikely that compensation will be discussed at the annual shareholder on May 16, 2014.