Thursday, January 20, 2011

Lloyd Blankfein Took Home $425 Million In Goldman Stock & Cash Bonuses Over The Last 10 Years, While Shareholders Made Less Than 3% Per Year

Lloyd got lucky. He stole from shareholders and got away with it. Includes a classic clip from Michael Moore and Dylan Ratigan on Wall Street bonuses.

Look at the bottom right corner of the screenshot image above.

  • Total Return During Tenure.....-6%

The Bloomberg headline of $125 million just counts cash bonuses. Including stock bonuses given to Blankfein, the true number is $425 million.

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Editor's Note: We are reposting this story from last Fall in light of Goldman's earnings reported today...

From Bloomberg

One-year certificates of deposit earned an average rate of 3.17 percent in the last 10 years, beating the 2.78 percent annual total return on Goldman Sachs. Buying a 10-year Treasury note in mid-September 2000 would have yielded 5.8 percent annually.

Wall Street firms have defended the pay of chief executive officers, including Blankfein, by pointing to the value they generate for shareholders. Yet over the last decade, the S&P 500 Financials Index, which includes 80 members, has dropped 49 percent. Bank of America Corp., Citigroup Inc. and Morgan Stanley have lost money for shareholders, while JPMorgan Chase & Co. returned an annual 1.23 percent, Bloomberg data show.

One investor who guaranteed himself a higher dividend was Warren Buffett, the billionaire chairman and CEO of Berkshire Hathaway Inc., who has produced an 8 percent annual return for shareholders over the last decade. When Buffett, 80, injected money into Goldman Sachs at the height of the financial crisis in 2008, he steered clear of the common stock and instead purchased a special class of preferred shares that pay him a 10 percent annual dividend.

Watch

Video: Ratigan and Michael Moore On Record Wall Street Bonuses

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