Goldman awards CEO Blankfein $23 million in pay for 2015

Fri Jan 22, 2016 3:39pm EST
 
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By Olivia Oran

(Reuters) - Goldman Sachs Group Inc (GS.N: Quote) Chief Executive Officer Lloyd Blankfein received $23 million in salary and bonuses for 2015, according to a person familiar with the matter.

That's the first decline in four years for Blankfein, who received $24 million in 2014.

Goldman said in a regulatory filing on Friday it had awarded Blankfein a restricted stock bonus of 96,934 shares worth $14.7 million, based on Goldman's closing price of $151.65 on Thursday when the bank said it granted the award. Half of that bonus is in share units tied to performance.

Goldman's board of directors typically awards executives 70 percent of their bonus in stock and 30 percent in cash, suggesting that Blankfein also received a $6.3 million cash bonus. Goldman does not disclose the full details of executives' pay packages until it files its proxy statement.

Combined with a salary of about $2 million, Blankfein's total pay package for last year was roughly $23 million.

Goldman Chief Financial Officer Harvey Schwartz and president Gary Cohn both received restricted shares worth $13.4 million.

Goldman in 2015 posted a return on equity (ROE) of 7.4 percent, after being hit in the fourth quarter by a $5 billion settlement related to its dealings with mortgage backed securities during the financial crisis reduced ROE. Adjusting for the settlement, the bank's return on equity would have been 11.2 percent, which is in line with its profitability over the last several years.

Rival Morgan Stanley (MS.N: Quote), in contrast, posted a return on equity of 8.5 percent in 2015, below its target of 10 percent.   Continued...

 
Goldman Sachs Chairman and CEO, Lloyd Blankfein, waits to speak at the 10,000 Women/State Department Entrepreneurship Program at the State Department in Washington, March 9, 2015.  REUTERS/Gary Cameron