Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, November 17, 2008

Goldman, UBS Announce No Bonuses for Top Executives

Both Goldman Sachs and UBS AG have announced that their top executives will not receive bonuses for 2008.  Goldman's seven top executives decided it would not be politic to receive bonuses this year.  InvNews, Goldman execs just say no to bonuses. In addition, UBS announced that its top executives and senior managers will receive no bonuses in 2008.  InvNew, Bonus spigot runs dry at UBS.

New York Attorney General Andrew Cuomo commended Goldman and UBS for foregoing bonuses and "encouraged" Citicorp and AIG to do the same:

"Citigroup's announcement today that it will cut an additional 50,000 jobs is a sad and disturbing development for the company. As Citigroup suffers, so too do investors, employees, and taxpayers. At the very least, Citigroup should follow Goldman Sachs' lead and announce quickly that top executives will not be receiving bonuses this year. Citigroup's stated intention to wait until the new year to make its bonus decisions is a mistake. After four consecutive quarterly losses, it seems only fair that top executives should shoulder their fair share of these difficult economic times. It would send exactly the wrong message for Citigroup's top brass to collect bonuses while investors, taxpayers, and now Citigroup's own employees suffer."

"Citigroup is, of course, not the only company in this situation. Other companies like AIG, who have received billions in rescue financing from taxpayers, also need to take a hard look in the mirror when determining the right thing to do on executive bonuses during these very difficult economic times."

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