Meet the new billionaire LLoyd Blankfein
Hello monkeys !
Reading Bloomerg a few days ago I came across this (link inside post)
Goldman Sachs Group Inc. made hundreds of partners rich when it went public in 1999. Its performance since then has turned Lloyd Blankfein into a billionaire.
The chief executive officer of the Wall Street bank for the past nine years, Blankfein has seen his net worth surge to about $1.1 billion as the firm’s shares quadrupled since the initial public offering, according to the Bloomberg Billionaires Index. As the largest individual owner of Goldman Sachs stock, he has a stake in the company worth almost $500 million. Real estate and an investment portfolio seeded by cash bonuses and distributions from the bank’s private-equity funds add more than $600 million.
For Blankfein, the son of a New York postal worker, the accumulation of wealth has been dramatic. He’s one of the few current leaders of a big global bank who reached a senior-executive rank before his firm went public. That won’t happen again anytime soon, as Goldman Sachs was the last major Wall Street firm to end its private partnership.
“It will be a rare thing,” said Alan Johnson, managing director of compensation-consulting firm Johnson Associates. “Most people won’t have as long of a career at a high level, and it’s certainly unusual to keep as much of that stock that you’ve been granted. And then, of course, the firm you work for has to be really successful.”
http://www.bloomberg.com/news/articles/2015-07-17/blankfein-becomes-bil…
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The chief executive officer of the Wall Street bank for the past nine years, Blankfein has seen his net worth surge to about $1.1 billion
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Why don't they change the name Goldman Sachs to Goldman Blankfein hah?
If you guys don't believe that Paulson is a fucking scumbag, then take this straight from the article:
"Henry Paulson, the bank’s CEO before and after the IPO, had almost $600 million of stock and options when he left to become U.S. Treasury Secretary in 2006, a move that allowed him to sell his stake without paying taxes."
Effectively the guy earned nine figures as a 'pubic servant' by avoiding taxes. It makes me sick.
Why do you think so many big wig Wall streeters go work for the government towards the end of their careers? Paulson was not the first to do it, and sure as hell won't be the last if the laws still stand
no offense, dick... but that was a smart move by paulson..
DickFuld correct me if I'm wrong but he had to convert these into government securities so its not like he cashed in, right?
See http://www.forbes.com/2006/06/01/paulson-tax-loophole-cx_jh_0602paultax….
This post is hilarious ironic considering your username :)
Fuck Paulson.
Well maybe you should have paid for Bush's presidency.
Uber/Tesla is just finnally realizing that growing big without giving a cut to the relevant politicans is going to bite you down the line
Normally when I see a news story of a CEO becoming extraordinarily wealthy simply because they've been a CEO I kind of cringe but most of Blankfein's wealth seems to be because he held his partner interests that went into stock and he reinvested into risk equity PE investments. The flying spaghetti monster blesses him.
Entrepreneurs, obviously, who build companies or CEO's like Jack Welch who built a middling F500 industrial company into a giant deserve the money they've created. I know the headline wants people to dislike Lloyd but he's made a market rate comp as the CEO of GS while navigating it around pretty hairy times. He just came in with equity, held it and/or reinvested it in his own gamble. I hate, absolutely hate, seeing CEO's making god awful amounts of money when they do nothing or hurt companies on an annual basis then get a parachute.
Not to get into a whole political discussion but isn't it a little absurd how so much wealth is concentrated in the hands of one person...its like he's an emperor. Yeah yeah, free market, pull by boostraps, shareholders approve, blah blah blah...but seriously
Um ... Paulson isn't wiping away his tax liability. He just gets to defer it (specifically, until he sells the assets that he purchased with the proceeds). Big difference.
You get a step up in cost basis when you die. The guy has more money than he could ever spend and I'm sure he bought a few investments that are diversified enough that he never has to sell, so he actually won't pay that tax.
I wonder sometimes about places like Goldman and Glencore going public. Sure, the paydays at both places were absolutely ridiculous, and it made sense from a strategic perspective (definitely so for Glencore, probably so for Goldman) but it changes the relationship of future employees to the company so totally, it makes you wonder if it was really worth it. No new blood at either place is going to commit so totally performing over the long haul and the word 'exit opp' becomes instantly relevant once the possibility of such a big payoff is gone and your compensation becomes tied to the vicissitudes of the market and investors/regulators looking at your paycheques.
Do anyone work at Goldman? how is LLoyd in real life? is you ever met him
Have met in a sbux before. He was alone waiting for a meeting to start next door.
Nothing like what I imagined. Looks much older & rounder IRL. Nobody else in the store noticed him despite the place being packed.
Did not talk shop at all. Just giggled about how addicting their muffins are & other mindless shit. Very jovial - kinda like a bankster Santa Claus.
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