Goldman could require charitable donation of employees
Menu JTA Search

Goldman could require charitable donation of employees

 As Goldman Sachs prepares to give away mammoth bonuses to its employees, the bank is considering requiring its top employees to give away a portion of their bonuses to charity, long a practice of the failed bank Bear Stearns, according to the New York Times.

Though details of the move are not yet known, the move appears as much a PR move as it is a charitable move:

The move would be the latest in a series of initiatives by Goldman to soften criticism over the size of its bonuses, which are expected to be among the largest on Wall Street, bringing average pay to about $595,000 for each employee — with far higher amounts for top performers.

Goldman set aside $16.7 billion for compensation in the first nine months of 2009, and in good years, the firm dedicates about three-quarters of its compensation budget to year-end bonuses. The firm is expected to report later this month what could be record profit of about $12 billion for 2009, according to analysts’ estimates, compared with $11.7 billion in 2007. Its final compensation pool and executive bonuses will be announced then.