Goldman Sachs forgo chief exec bonuses due in year when value of company decimated (EDITORIAL)
Goldman Sachs top execs, we read in this morning's papers, are forgoing their bonuses this year, making do with their $600k/yr salaries. They are, the Wall Street Journal reports, giving up "tens of millions" they are contractually due in 2008 bonuses because "it's the right thing to do" given the problems of the economy and the industry.
But the real question is: what kind of employment contract is it which gives these guys bonuses in a year when the stock price of the company has plunged 60% and it is expected to post a major loss for the year?
What kind of dolts or accomplices to thieves sit on a board of directors that will sign off on contracts that pay management tens of millions when its value tanks.... guess the answer is the same kind of morons or crooks who looked the other way when the company put billions into derivatives and bundled securities they now say are too complicated to value, and which threaten them and us with ruin.
Jump, guys, jump!
We think the "right thing" for these guys to do would be to jump from the 38rd floor window, the way honorable wallstreeters used to do.
PS Guess this is an old urban legend - see http://www.slate.com/id/2200633/
Too bad. But we love the story of the cops dragging a window washer off a ledge as a suicide suspect.
Editor - TOLLROADSnews 2008-11-17