A government gift to Goldman Sachs?
When Goldman Sachs (GS) decided to pay out bonuses to the top 30 employees in stock, a big issue was where the strike price--so to speak--will be set. That is, how much stock would it take to get the bonus level. It depends of course on how the calculation is made.
But it may be that the government, whose plans to restrict proprietary trading and other activity at some banks sent stocks tumbling, may have given executives a gift: More stock as part of their bonuses, notes the New York Post. Goldman's stock has fallen about 8 percent in the last few days. Even if they average prices over a set period, this would help a bit. At times, it seems that Goldman Sachs can't lose. Unfortunately, as the Post notes, state and local governments collect taxes when cash is paid and stock is cashed out. They might be the short-term losers.
For more:
- here's an article
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