Friday, November 20, 2009

Goldman Sachs Is Even Screwing Its Shareholders, and Bonuses Are Even Higher Than They Look

Goldman Sachs employees can't help themselves when they see a buck. In the name of doing "God's work," Lloyd Blankfein apparently is going along with the GS is evil mantra and is going to screw GS shareholders and keep more GS money for himself and his GS top dogs.

Despite record net income and compensation at Goldman, analysts expect its 2009 earnings per share to be 22% lower than in 2007.

The decline is caused by GS issuing more than 100 million shares in the past year to bolster Goldman's financial position and capital. Major shareholders have said that reining in the bonus pool, and boosting earnings instead, would deliver an upward jolt to the share price, according to people familiar with the discussions, reports WSJ. Blankefein has reportedly gone blank on this idea.

In other not surprising news from the world of Goldman, GS has changed its financial statements and now adds temps and consultants as employees. Naturally, since these people are not employees they will not be getting bonuses. But, because they are reported in the financials, it reduces per-employee compensation, making it look like Goldman employees earn less than they actually do.

Based on the bogus number, Goldman employees will earn $717,000 apiece for 2009. Excluding temporary employees and consultants would increase compensation per employee to about $775,000, according to WSJ.

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