Investment bank under fire again as investors protest at record bonuses of $717,000 each
Goldman Sachs has had to defend itself from angry taxpayers, regulators, the government – and now its own shareholders.
Some of the US investment bank's largest investors are furious about the New York-based firm paying record bonuses to its staff – bonuses are estimated to be $717,000 (£435,000) each for 2009, the biggest payout in the firm's 140 years.
Investors claim that now profits are back, rewards should go first to shareholders because they suffered the cost of the credit crunch more than anybody else.
"Most of the losses were for equity shareholders," said a fund manager at a large investment firm. "If they had cared about the preservation of equity value, the crisis wouldn't have been nearly as bad as it was. It would be in everybody's interest, the taxpayer and of banks themselves, if management's interests were more aligned with shareholders."
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