Wednesday, September 9, 2009
Goldman Sachs' chief executive admitted that anger over bankers' stratospheric pay was largely "understandable and appropriate" and called on rivals to dump multi-year guaranteed bonuses. Lloyd Blankfein said that there was little justification for the payment of outsized discretionary compensation by loss-making banks. Only junior employees should get most of their pay in cash, he said, with the percentage of compensation made in equity increasing with a workers' seniority. Senior executives should be required to keep most of their equity, even if they leave the bank.