Incentive Compatibility
A good move by Goldman Sachs.
Sue Chong:
Goldman Sachs management won't get cash bonus: SAN FRANCISCO (MarketWatch) -- Goldman Sachs Group (GS 166.27, -0.18, -0.11%) said Thursday its management committee will be receiving its bonus in the form of "shares at risk" in 2009 instead of cash. The shares at risk cannot be sold for five years and include other restrictions. "Discretionary compensation represents the vast majority of senior management's compensation and is directly tied to the firm's overall performance," Goldman Sachs said in a statement. Shareholders will also have an advisory vote on the compensation package at the financial firm's annual meeting in 2010. The announcement comes after the board approved various changes to the 2009 compensation program.
