Goldman Sachs takes care of its execs

Two Goldman Sachs executives with financial difficulties were "bailed out" in a sense by the bank. Before the TARP deal was struck, Jon Winkelried, the co-chief operating officer who retired last month, was paid $19.7 million to purchase about 30 percent of his investments in internal hedge funds and private equity investments, the New York Times reports. Gregory Palm, its general counsel, was paid $38.3 million for about a quarter of his investments. The bank was concerned that a massive sale of Goldman shares by either man would exacerbate an already rough stock slide.

Lots of Goldman employees have been stung by the stock swoon and internal investment funds. Goldman offered loans this month to more than 1,000 employees who invested in such funds. Also, one bank executive, not identified in the proxy, has pledged 500,000 shares of stock in exchange for loans. The two big buybacks mentioned here occurred before the TARP deal. Going forward, such deals might be a bit trickier. 

For more:
- here's the New York Times article

Related Articles:
Nuances in the Goldman Sachs-AIG controversy
Analysts duel on Goldman Sachs, Morgan Stanley
Goldman Sachs PE fund to focus on debt
Goldman Sachs loans to pay employee margin calls

Post a comment