(by Mani) The 2011 compensation of Lloyd Blankfein, the Chief Executive Officer of Goldman Sachs Group, Inc. (NYSE:GS), has been raised 14.5 percent to about $16.2 million, according to a regulatory filing.
The uptick in compensation comes as the leading investment bank reported a decline in profits, sales and share price during 2011 when the company's performance was challenged by instability in the Eurozone, depressed client activity and regulatory uncertainty.
In 2011, Goldman's earnings attributable to common shareholders fell 67 percent to $2.51 billion, and total net revenues dropped 26 percent to $28.81 billion. The company's shares fell 46 percent in in 2011.
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Meanwhile, Goldman has given a different calculation of compensation that excludes stock awards from previous years that vested in 2011. By that measure, Blankfein's compensation fell 35.5 percent to $12 million.
But, the SEC gives more priority to what executives actually take home in a year, rather than what they are awarded in a year. The SEC's calculation method also includes future period payments in compensation.
Blankfein's total 2011 compensation of $16.2 million includes an $2 million salary, a $3 million bonus, stock awards of $10.7 million. In 2010, he was paid $14.1 million in compensation, including an $600,000 salary, a $5.4 million bonus, and $7.65 million in stock awards.
In general, activist shareholder groups have been voicing against huge pay packets for Wall Street banks, citing lackluster financial performance and falling stock prices. In response, the large cap banks have revised their compensation policies by including more bonus money in the form of restricted stock units.
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Goldman, in its proxy filing, has disclosed that a shareholder named John Harrington asks Board to adopt a policy under which the Named Executive Officers (NEOs), including the CEO, will be required to hold 75 percent of the company's stock, for at least three years from the termination of their employment. Goldman urged the shareholders to reject the proposal.
Among others in the industry, Morgan Stanley (NYSE:MS) Chief Executive James Gorman saw his compensation for 2011 drop by 25 percent to $13 million. Meanwhile, JPMorgan Chase & Co. (NYSE:JPM) paid $23.1 million in compensation to its CEO James Dimon in 2011, representing an 11 percent increase from $20.8 million paid in 2010.
In addition, Bank of America (NYSE:BAC) CEO Brian Moynihan took home $18 million, and Wells Fargo chairman and CEO John Stumpf got $19.8 million in 2011.