RECORD INEQUALITY IN THE U.S.- BILLION$ for WALL $TREET BO$$E$

[Orwellian_Ghost]

Record inequality in the US: Billions for Wall Street bosses as workers’ share of income shrinks

By Patrick Martin
20 December 2007

Goldman Sachs, the most profitable US investment bank, will distribute a staggering $12.1 billion in bonuses this month, up from $9.9 billion last year. The company will pay $20.2 billion in all forms of compensation, up from $16.5 billion last year.

While the total compensation figure includes salaries and benefits for all 30,000 people employed at Goldman Sachs—leading to breathless media reports of an “average” compensation of $661,490 per employee—the lion’s share will go to a few hundred top executives, managers and partners, who will receive tens of millions apiece.

Chairman and CEO Lloyd C. Blankfein will rake in about $70 million himself, up from $53.4 million last year, which at the time was the highest income ever reported by a bank CEO. The bank reported Tuesday that its fourth-quarter profits rose 2.2 percent to $3.2 billion, $7.01 for each share of stock, well above the expectation of $6.61 a share set by stock analysts. Total profits for 2007 were $11.6 billion, up 22 percent over 2006, on total revenues of $88 billion.

Lehman Brothers, the fourth-biggest securities firm, announced last week a bonus pool of $5.7 billion and total compensation of $9.5 billion, with CEO Richard S. Fuld Jr. awarded a $35 million stock bonus, on top of his salary and benefits.

...

http://wsws.org/articles/2007/dec2007/gold-d20.shtml

[entanglement]

1. Kick

[patrice]

2. e.g. Gary Forsee further screws up an already struggling telecom and

is rewarded with the presidency of MU http://www.bizjournals.com/kansascity/stories/2007/12/17/daily27.html

While millions of people expect daily to hear that their jobs are no more any day now, no matter how good their work is.

[SweetThingy]

3. I understand why Goldman Sachs pays out fat bonuses.

They made a lot of money by calling the subprime fiasco correctly.

What I don't understand is how the CEO's of places like Citi or Merril Lynch can walk away with giant paychecks after posting record losses.

[balantz]

4. I've been on the street.

It's cruel and closer than we think.