Bailout-loving Goldman Sachs gives early bonuses to avoid taxes

When the Goldman Sachs team sits back and wonders why they’re so despised by so many, they should look at this as an example of why.

It’s only because of the generosity of the American taxpayer that Goldman and the rest of the pampered banking class still are in business, flush with money.

But that was so long ago in the minds of the greediest people on the planet. All has been forgotten, and the senior management of Goldman expect preferential treatment at every turn. Yes, their taxes are increasing — that kind of happens after we bailout you out and, rather than dying and paying no taxes (because you don’t exist anymore), you flourish.

Time after time, the bankers remind us of how poorly the 2008 bailout was implemented (from the perspective of the taxpayers). Many of these companies needed to be saved, but their million-dollar lifestyles did not need to be saved.

It’s also worth noting that the banking crisis these guys created is a major reason for the ongoing soft economy.  It’s not as if they’re out of the woods yet in terms of owning the ongoing mess we’re still in.  So perhaps it’s not yet time for them to celebrate by throwing their (our) cash around everywhere but the US Treasury.

So much for Goldman Sachs CEO Lloyd Blankfein’s empty words about his willingness to pay more in taxes to help address the fiscal cliff:

Goldman Sachs logo

Goldman Sachs logo

Goldman Sachs CEO Lloyd Blankfein wants politicians and business leaders to work together to avoid the “fiscal cliff,” even if it means the rich end up paying more in taxes.

“I believe that tax increases, especially for the wealthiest, are appropriate,” Blankfein wrote in a Wall Street Journal commentary in Wednesday’s edition.

Or not.

Thanks for nothing (literally):

Goldman Sachs Group Inc. (GS) accelerated delivery of $65 million in stock awards to 10 executives, including Chief Executive Officer Lloyd C. Blankfein, helping them avoid higher tax rates that take effect this year.

The awards are restricted stock granted for years prior to 2012, according to 10 separate filings made public at about 8 p.m. New York time on Dec. 31. Each executive surrendered 45 percent to 50 percent of their awards in order to pay taxes, according to the filings. Goldman Sachs stock climbed 41 percent in 2012, its first annual gain since 2009.

Goldman Sachs, the fifth-biggest U.S. bank by assets, typically delivers executives’ restricted stock during January. The decision to speed up the delivery came as the U.S. Congress debated and ultimately passed a bill that would increase tax rates on capital gains and on individuals who make taxable income of $400,000 or more.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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  • Isle of Palms. John

    I wonder if they run afoul of Section 162(m) of the IRC which has strict requirements for attainment of performance goals before payout of incentives to named( Section 16)executive officers. Paying out before results are certified to the banks comp committee could result in GS losing a significant tax deduction. Shareholders should rightfully be upset if the bank loses the excess dedution. Not too many large companies get away with this. The early vesting of stock awards solely to avoid the higher tax may be an issue here

  • eahopp

    Is it time to start investing in tar and feathers now?

  • janice

    Many a man has finally succeeded only because he
    has failed after repeated efforts. If he had never met defeat he would
    never have known any great victory.

  • lynchie

    Totally agree they are all blood suckers supported by Congress and their servants in the White House.

  • ZiaDisi

    Why are you singling out Goldman here? Pretty much all corporate entities that pay bonuses pulled that maneuver. Goldman sucks for many a reason: Double dealing, bailout shenanigans, the endlessly revolving door, sweetheart deals with the feds, but this bonus before new tax laws kick in is just business as usual in America. If you’re going to shine a light on this sleazy but totally legal loophole, shine it wide on this one.

  • bkmn
  • lynchie

    These same bastards should be doing time in Attica instead of getting another bonus for incompetence.

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