Goldman Sachs (GS) 01 (Jun 08 - Apr 10)

[kennynah]

i suppose i would treat at as i would a horse bookie's tip.... take them for the 1st 2 times... bet small with that tipper...but huge with another runner... the idea is to give the tipper the idea you are bait for the long haul...

and by the 3rd tip... i would fade the tip and bet the opposite

do u think this is a good idea?

[winston]

Not vested.

The guys on Fast Money are commenting on GS now, saying that it lead the market up the last few months and it is leading the market down now.

I think it could be because of another reason..

GS has changed their date of bonus payment this year. Bonuses will now be paid in mid January and as always, a lot of their bonuses would be in shares.

If you follow the listed companies closely, you would notice that their stock prices would drop just before bonus time, so that the exercise price on their stock options and stocks would be lower.

Use the comments above at your own risk. I dont invest in US shares and dont intend to, in the near future.

[millionairemind]

Goldman scraps cash bonuses for leaders
By Justin Baer in New York

Published: December 10 2009 18:10 | Last updated: December 11 2009 00:33

Goldman Sachs moved to quell public anger over executive pay on Thursday by unveiling plans to eliminate cash bonuses for its top 30 executives this year and give shareholders a vote on compensation.

The new policies come as some of the world’s financial capitals weigh steep taxes on bonuses paid to employees of banks that drew government support during the credit crisis. Goldman’s rapid recovery from the downturn, and the likely windfall many employees will reap next month thanks to surging profits, has made the bank a frequent target for politicians and shareholders.
http://www.ft.com/cms/s/0/1ba50b30-e5b6 ... ab49a.html

[kennynah]

i'm under the impression that GS has returned the TARP money...and if so, why are they still beholden to goovernment and public on their internal policies of compensating their employees?

one of the reasons for GS outperforming many of its industry peers must be due to their aggressive compensation scheme for the top performing employees...and once it starts restructuring this successful model, how can they retain existing talents and attract the brightest and the best to their firm in future?

[financecaptain]

i'm under the impression that GS has returned the TARP money...and if so, why are they still beholden to goovernment and public on their internal policies of compensating their employees?

one of the reasons for GS outperforming many of its industry peers must be due to their aggressive compensation scheme for the top performing employees...and once it starts restructuring this successful model, how can they retain existing talents and attract the brightest and the best to their firm in future?

Do not worry for these investmenty bankers.
They are more innovative than you can think.
They will be able to financial engineer their incentive pacakages. Maybe they may not call it bonus or in cash form, they will still be well rewarded.
Remember during the worse times last year, many wall street bankers were incentivised with securitised notes that have fallen sharply in value - to incentivise them to manage the battled portfolio - these notes are now worth at least 2X their values since they were awarded.

[kennynah]

many wall street bankers were incentivised with securitised notes that have fallen sharply in value - to incentivise them to manage the battled portfolio - these notes are now worth at least 2X their values since they were awarded.

and how do you know this?

[financecaptain]

The structured notes incentives were widely reported.
And given the rebound in capital mArkets, all structured notes prices have recovered from their lows.
Remember, these notes were awarded when these notes were trading at their lows.

[kennynah]

orhhh... from widely circulated reports...

and i thought you were one of those that received structured notes as incentive to work harder...since you spoke with such conviction...as if you knew it for a fact....

but nevertheless, it was good to hear about those "widely circulated reports"... thanks...

[millionairemind]

December 16, 2009
Goldman sued over multi-billion pay pool
Christine Seib in New York

The pension fund of the Security Police and Fire Professionals of America (SPFPA), the country’s biggest union of security staff, filed a suit in the New York Supreme Court, claiming that Goldman’s pay plans overestimated its employees’ contribution to the bank’s success.

Grant & Eisenhofer (G&E), the SPFPA’s class action lawyers, said: “Instead, the plaintiffs contend, the payouts are based on a trillion dollar investment made by American taxpayers that was meant to stabilise the financial industry.”
http://business.timesonline.co.uk/tol/b ... 957991.ece

[kennynah]

seems to me, the plaintiffs are also trying to land their hands on some TARP generated money...

what is it with people about GS.... cant GS be recognized for their superior performance?