Goldman Sachs (GS) announced that its top executives will not receive cash bonuses for this year. Instead, the executives will receive stock that cannot be sold for at least five years. They will also permit the firm to recapture the shares in cases where the employee engaged in materially improper risk analysis or failed sufficiently to raise concerns about risks.
“The measures that we are announcing today reflect the compensation principles that we articulated at our shareholders’ meeting in May. We believe our compensation policies are the strongest in our industry and ensure that compensation accurately reflects the firm’s performance and incentivizes behavior that is in the public’s and our shareholders’ best interests,” said Lloyd C. Blankfein, chairman and chief executive.