By Michael J. Moore and Christine Harper
April 12 (Bloomberg) -- Lloyd C. Blankfein’s top deputies
are no longer equal in terms of pay at Goldman Sachs Group Inc.
President Gary Cohn, 52, was awarded a $19 million
compensation package, 12 percent more than Vice Chairmen J.
Michael Evans and John S. Weinberg, according to the New York-
based firm’s annual proxy filing. The disparity is the first
since 2007, when Blankfein’s bonus set the record for a Wall
Street chief executive officer.
The change may further fuel speculation about which
executive is most likely to succeed Blankfein, 58, who sometimes
out-earned his own boss Henry Paulson. Blankfein, who succeeded
Paulson as Goldman Sachs chairman and CEO in June 2006, said in
a February interview with Bloomberg Television that he has plans
to stay in the top job indefinitely.
“If somebody gets more money that could be a sign” that
they’re in the running for the job eventually, said Jeanne
Branthover, managing director at Boyden Global Executive Search
in New York. “A partnership is very big about ‘what message are
we giving each partner?’”
Evans, 55, the vice chairman who oversees Goldman Sachs’s
emerging-markets business, received $17 million, as did
Weinberg, 56, who helps oversee investment banking. David
Viniar, who retired as the firm’s chief financial officer
earlier this year, was awarded $19 million.
Cohn’s package for 2012 included a $5.15 million cash
bonus. Evans and Weinberg each got a $4.55 million cash award.
Differences in pay among the named executive officers, or
NEOs, were “primarily to reflect their individual performance,
as well as their roles,” the bank said in the filing. “No
specific individual performance goals were used by the committee
in making these NEO compensation determinations.”
Blankfein received a larger bonus than his deputies for the
first time since 2007, when he set a Wall Street pay record. All
of Goldman Sachs’s named executives received no bonus in 2008,
and then got cash and stock awards of $9 million, $18 million
and $10 million over the next three years.
Blankfein got $21 million for last year, his highest annual
package since 2007, as reported by Bloomberg News in January.
That consisted of $13.3 million in restricted stock and a $5.7
million cash bonus for 2012 in addition to his $2 million
salary, according to today’s filing.
That made him the highest-paid CEO among those at the 10
largest U.S. banks, exceeding the $9.75 million for Morgan
Stanley’s James Gorman and $11.5 million awarded to JPMorgan
Chase & Co.’s Jamie Dimon.
Goldman Sachs, the fifth-biggest U.S. bank by assets,
reported its first revenue gain in three years in 2012, as each
of its four divisions showed an increase last year. The bank’s
return on equity was 10.7 percent, up from 3.7 percent in 2011
while less than one-third of what the firm earned in 2007.
The stock rose 41 percent in 2012, the first annual
increase since doubling in 2009. While the shares have rallied
16 percent this year, they’re still 12 percent below their level
at the end of 2010.
Goldman Sachs’s compensation committee has been led by
James A. Johnson, a former CEO of Fannie Mae, as long as the
bank has been a public company. Johnson was re-elected to the
board with about 84 percent of the vote at last year’s
shareholder meeting, overcoming opposition from investment firm
Ruane, Cunniff & Goldfarb Inc.
Goldman Sachs cut 900 jobs last year, and compensation
costs rose 6 percent, trailing the 19 percent increase in
revenue. In November, the firm named 70 employees to its so-
called partnership, the fewest in 13 years as a public company,
and said last month that it will start naming managing directors
every two years instead of annually.
For Related News and Information:
Goldman Sachs CEO Blankfein Says He Plans to Stick Around
Blankfein Bonus Said to Surge, Surpass Dimon in First Since 2007
Goldman Keeping Lid on Pay as Revenue Rises Cheers Investors
Top financial stories: FTOP
Goldman Sachs earnings: MS US EM
On bank earnings: TNI BNK ERN
People in the news: WHO
--Editors: Peter Eichenbaum, David Scheer
To contact the reporters on this story:
Michael J. Moore in New York at +1-212-617-6919 or
Christine Harper in New York at +1-212-617-5983 or
To contact the editor responsible for this story:
David Scheer at +1-212-617-2358 or
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