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Lloyd Blankfein poised for US$85m payout when he leaves Goldman
[NEW YORK] Lloyd Blankfein could get as much as US$84.7 million in compensation when he departs Goldman Sachs Group Inc in October after 36 years at the investment bank.
Mr Blankfein, 63, who's been chief executive officer since 2006, will receive the bulk of that pay in performance-based shares and cash awards that were to be earned through 2024. It's unclear if these awards will be accelerated, prorated or forfeited when he leaves because Goldman Sachs doesn't have employment agreements that guarantee severance payments, according to its 2016 proxy.
Mr Blankfein will be succeeded as CEO on Oct 1 by David Solomon, 56, the firm said Tuesday in a statement. He will relinquish his role as chairman at year-end. Mr Solomon's status as the heir apparent was cemented in March, when the firm announced that he would become sole president while Harvey Schwartz - his chief rival for the job - would leave the company.
The target values for Mr Blankfein's performance cash grants and share awards were US$35 million and US$43.5 million, respectively, based on Monday's closing price. He also had US$6.2 million in pension and deferred compensation as of the fiscal year end, according to the most recent proxy filing.
"Lloyd does have not any severance arrangements, and the delivery of his outstanding deferred compensation is not accelerated upon his retirement," Michael DuVally, a spokesman for the New York-based bank, said in an emailed statement.
Mr Blankfein has a net worth of about US$1.3 billion, according to the Bloomberg Billionaires Index.