Goldman Sachs 'asked to cut bonuses by shareholders'

20 November 2009

Goldman Sachs bosses have been asked to cut their bonus payouts to staff by shareholders, according to insiders.

The investors are believed to be frustrated that although earnings per share are 22 per cent lower than in 2007, Goldman Sachs is on course to pay out record bonuses this year.

Bonuses are expected to reach an average $717,000 each, but shareholders would like to see more of 2009's profits passed on to them, reports the Wall Street Journal.

Goldman Sachs, which received a $10 billion bailout from the US government last year, has been heavily criticised for its planned bonuses and it is believed that much of it will be paid in restricted shares rather than cash.

Earlier this week, Lloyd Blankfein, chief executive officer of the institution, apologized for the role his company played in the financial crisis.

"We participated in things that were clearly wrong and have reason to regret," he said.

"We apologize."

By Claire Archer

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