By Dow Jones Business News,
January 30, 2014, 04:51:00 PM EDT
By Justin Baer
Goldman Sachs Group Inc. awarded its chief executive, Lloyd Blankfein, $14.7 million in restricted stock, the
biggest slice of an annual bonus that will rise about 11% from a year earlier.
Goldman said in a securities filing that Mr. Blankfein received 88,422 shares that will vest over the next several
years. Stock awards comprise about 70% of senior leaders' year-end payouts. Including his cash bonus, an estimated $6
million, and his $2 million salary, the executive stands to earn $23 million for his 2013 performance. For 2012, his
salary and bonus totaled $21 million.
Mr. Blankfein approaches his eighth anniversary as Goldman's top executive at an uneasy time for Wall Street.
Regulators have imposed a number of new rules on big banks that seek to fortify balance sheets and rein in risk-taking.
While Goldman has continued to boast higher returns than its rivals, the firm hasn't been immune to questions on
how well some of its activities - and especially its massive fixed-income trading operations - can thrive in this new
Earlier this month, Goldman reported total annual revenues of about $34.2 billion, little changed from a year
earlier. Net income rose 8%, as expenses, including what the firm paid its employees, fell. Goldman's return on equity,
a closely watch measure of companies' profitability, stood at 11% in 2013.
But revenue from fixed-income, currencies and commodities, an area dealing with a particularly sharp increase in
regulation, saw trading slip 13%.
Mr. Blankfein successfully steered the firm through the worst financial crisis in decades - one that destroyed some
of Goldman's biggest rivals - and endured a bitter public backlash against Wall Street that at times singled out Goldman
for its actions leading up to the downturn.
Goldman, and Mr. Blankfein, weathered the storm, steadily rebuilding its relationships with governments and
regulators. In recent years, the firm has remained committed to its core trading business while quietly re-engineering
it in search of higher returns.
A year ago, Mr. Blankfein received a cash bonus of $5.7 million and stock awards then valued at $13.3 million.
Goldman paid him $2 million in salary.
Goldman's total costs for employee pay and benefits fell 3% to $12.6 billion last year.
Write to Justin Baer at firstname.lastname@example.org
Corrections & Amplifications
This item was corrected at 5:15 p.m. ET to show that annual revenue, in the fifth paragraph, was about $34.2 billion,
and total costs for employee pay and benefits, in the final paragraph, was $12.6 billion last year. The original
incorrectly stated the numbers in millions.
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