Lawsuit: Goldman Sachs bonuses bigger than its earnings



A lawsuit filed against investment bank Goldman Sachs by a shareholder alleges that the company spent more money on corporate bonuses than it earned in 2008.

Shareholder Ken Brown's lawsuit is one of two suits filed against the company this week over its controversial decision to hand out billions of dollars in bonuses even after it was accused of playing a central role in the financial collapse of 2008 and receiving $10 billion in direct aid from the US government.

In his lawsuit (PDF), Brown states that Goldman Sachs gave out $4.82 billion in bonuses in 2008, despite earnings of only $2.32 billion that year. The lawsuit alleges that the company spent 259 percent of its income in the first quarter of 2009 on compensation.

Goldman Sachs handed out $16.7 billion in compensation in the first nine months of 2009, according to Bloomberg news service, and that figure may reach $22 billion for the entire year. Brown's suit says the company typically sets aside 44 percent of its net revenue for employees.

“Payment of this exorbitant amount of compensation, which has little to do with Goldman Sachs’s performance, and was financed in large part with government bailout and taxpayer money, is a waste of the company’s assets and a breach of duty and loyalty," Brown asserts in the suit.

Brown's suit asks the court to order the company to return the bonus money to company coffers.

In another lawsuit, filed Thursday, an Illinois pension fund that is a Goldman shareholder demanded that Goldman return some of the compensation it has handed out since the financial collapse. The Central Laborers' Pension Fund wants compensation for damages to shareholders from the company's compensation spending.

Reuters reports:

The lawsuit contends that Goldman's revenue for the year was artificially inflated by government bailouts of the banking industry and the insurer American International Group Inc, as well as a change in Goldman's fiscal year.

Such sums, and Goldman's practice of continuing to pay out nearly 50 percent of net revenue as compensation, show "scant regard" for the interests of shareholders, it said.
Both lawsuits "are completely without merit," Goldman Sachs spokesman Michael DuVally told Bloomberg news.

Goldman Sachs has paid back the $10 billion it received in direct aid from taxpayers, meaning the company is not bound by government compensation limits. But the $10 billion figure doesn't include the billions more the company received thanks to pressure by the Fed on insurance giant AIG to pay all of its debts to Goldman -- and other AIG creditors -- in full.

On Thursday, it was revealed that during the financial crisis, the New York Fed -- then run by current Treasury Secretary Tim Geithner -- tried to cover up its demand that AIG use taxpayers' money to compensate Goldman Sachs
http://rawstory.com/2010/01/lawsuit-goldman-bonuses-bigger-earnings/

Views: 80

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Sandy posted a video

EPSTEIN MAXWELL HIDDEN DOCUMENTARY

Real Time Intel Exclusively On Telegram t.me/brainwashed444
31 minutes ago
Less Prone favorited Sandy's video
4 hours ago
Less Prone favorited tjdavis's video
4 hours ago
Less Prone posted a video

Sydney Sweeney Has Great Jeans - Outrage AI Parody Song

AI Parody Music Video poking fun at the online hysteria surrounding Sydney Sweeney's American Eagle jeans campaign.✅ Blue jeans✅ Blonde panic✅ DEI gone wild✅...
4 hours ago
tjdavis posted a video

How "Free" P*rn Sites Really Work (and Who Runs Them)

Excerpt from This Past Weekend w/ Theo Von #559 Laila MickelwaitFull Episode: https://youtu.be/9J7187j4PO4?si=2GUNymssKJpe6nEvFind Theo Von:Website: https://...
14 hours ago
tjdavis posted a blog post
15 hours ago
Doc Vega posted blog posts
21 hours ago
Doc Vega commented on Ragnarok's video
Thumbnail

Charles Manson Talks About The Global Elite

"I've had my account with YouTube terminated before over bullshit excuses because they…"
23 hours ago
Doc Vega commented on Ragnarok's video
Thumbnail

Charles Manson Talks About The Global Elite

"Remember, though he makes his points, this man used the Beatles White Album as his own manifesto of…"
23 hours ago
Sandy posted videos
Monday
Sandy posted a photo
Monday
Sandy commented on Sandy's video
Sunday
Sandy posted a video
Sunday
cheeki kea posted a photo
Jul 30
Burbia posted a video

Strange Videos That Expose Something Massive

#disturbing #video #strange #scary #scaryvideos #strangevideos This is a compilation of the most disturbing videos on the internet, not only...
Jul 30
Doc Vega posted blog posts
Jul 29
Burbia commented on Burbia's video
Jul 29
Burbia posted a video

SUPEROLA & THE LOST BURGERS

This Game is RUBBISH !
Jul 29
pohonemas33 team commented on tjdavis's photo
Thumbnail

DejaVu

"nice very goodjob, i wish you can visit official situs pohonemas33"
Jul 26
Sandy posted a photo
Jul 26

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted