Goldman eyes perks for profit idea

Photo / Thinkstock

Goldman Sachs Group, weighing 2010 pay packages for a year that could rank as Wall St's second best, said it might grant bonuses that depend on future earnings, in addition to stock performance.

The awards would go to "key employees" and be tied to a variety of financial measures including revenue, net income and return on equity, a gauge of profitability, the New York-based company said yesterday. Awards might consist of cash, securities or other equity-linked components, and carry provisions allowing cancellation or return.

The plan "is a tool the compensation committee may use to further align incentive compensation with long-term performance", said Stephen Cohen, a company spokesman.

Cohen declined to provide figures on potential payouts, saying that awards had not been set.

Regulators have pushed banks to design pay packages for top employees that would discourage excessive risk-taking, after a financial crisis wiped out firms including Lehman Brothers Holdings and led to government bailouts. Most firms have interpreted the guidance to emphasise deferred stock awards over cash bonuses.

- BLOOMBERG