General Question

softtop67's avatar

So do you have a problem with Goldman paying such large bonuses?

Asked by softtop67 (1256points) July 15th, 2009

Seems Goldman is funding their bonus pool at somewhere between 400k and 775k per employee. Its been less than a year that taxpayers had to bail out the financial services industry, has nothing changed?

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13 Answers

sap82's avatar

Nothing has changed its all gonna fall apart. This country is screwed and we will see burn itself into ashes.

ubersiren's avatar

YES. This administration has ensured the biggest bonuses in history for Wall Street for 2009. I guess we’ll have to wait another 4 or 8 years for someone to make improvements.

marinelife's avatar

Yes, as I do not think the average GS salary of $800,000 a year is reasonable recompense. On the other hand, at least GS paid back their government loans.

“Where are the yachts of the customers?” From The Wealth Effect

The_Compassionate_Heretic's avatar

I don’t see why companies that are failing should be giving their executives that are causing them to fail, bonuses.
Why their shareholders tolerate this is beyond me.

marinelife's avatar

@The_Compassionate_Heretic Goldman is not failing. They just posted record profits and have paid back all federal bailout money.

cwilbur's avatar

If Goldman Sachs doesn’t owe any federal bailout money and is otherwise in compliance with the law, the amount of bonus money they pay out is entirely up to them.

The_Compassionate_Heretic's avatar

If they are performing well, then why not give out reasonable bonuses? I’m ok with rewarding exceptional performance.

I’m not ok with the AIG style bonuses.

skfinkel's avatar

Even it “deserved,” it appears unseemly.

mattbrowne's avatar

Excessive bonuses often lead to money addiction. Eventually new “innovative” financial instruments will be invented to create new bubbles and the next financial crisis.

softtop67's avatar

The question can go deeper, if they took their bonus pool and cut it in half for the last 5 years would they have needed a govt bailout at all? To me it just allows executives to take unnecessary risks because they know if it goes sour the taxcpayer is there to bail them out. And although they repayed their TARP they are a big stakeholder in AIG which is nowhere near solvent yet

CMaz's avatar

From the left pocket to the right.

faceman's avatar

they will do it again now we have bailed them out once

mattbrowne's avatar

Goldman Sachs is a disgrace. We can only hope that reputation damage solves the problem in the mid term. That the majority of the people prefers to deal with ethical companies.

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