COINCIDING with the biggest recession that America has seen in 80 years, it has been revealed that an American investment banking group’s top executives are receiving a total of over $100 million in bonuses this year.
Risky bank lending left the country in a case of financial meltdown from which companies are struggling to recover. Despite this, Goldman Sachs bosses are, on average, receiving $20 million in bonuses alone.
The bonuses were agreed just a few months before a U.S. bailout sum of $10billion was taken out by Goldman, causing an outrage to taxpayers and businesses struggling to make ends meet.
An astonishing $111 million payout will be granted at a time when millions of Americans have hit redundancy, additionally the current economic climate has resulted in federal workers being informed by President Barack Obama that they must take a pay freeze.
Though America’s biggest financiers will defend the distributions by claiming the bonuses were confirmed prior to the emergence of the recession, Goldman Sachs’ London-based partners have agreed to limit their income for last year to £1 million each as a result of the British Government’s bonus tax policy.
Not only will current bosses such as Chief Executive Lloyd Blankfein and President Gary Cohn receive payouts of $24 million each, but former co-president Jon Winkelried will receive $20.8million despite leaving the firm in March 2009.
Though currently demonstrating a disposable approach to its economy, Goldman once relied heavily on America’s state funded financial assistance programme to accommodate struggling banks; the firm was once borrowing up to $35 billion a day.
Managing Director at recruitment firm Boyden Global Executive Search, Jeanne Branthover said “There’s nothing you can do about it. The payouts were in stone. But hopefully, in the future, they won’t be. The public will be outraged.’
Bloomburg’s News’ recent survey revealed that more than 70% of Americans believed that distributing such bonuses should be restricted to banks that have not been previously assisted by the government.