Goldman Sachs' latest 'PR move'

Goldman's top executives will get stock instead of cash bonuses—but will that ease anger at Wall Street?

Facing an uproar over the return of record bonuses so soon after taxpayers bailed out Wall Street, Goldman Sachs announced last week that its 30 top executives would get stock instead of cash bonuses this year, and that shareholders would get to vote on executive pay. The news came after Goldman CEO Lloyd Blankfein launched a charm offensive in November by apologizing for his company's role in the financial meltdown. But Goldman is still awarding billions of dollars in bonuses—rivaling the record payouts of the bubble years—and the shareholder vote won't be binding. Has Goldman turned over a new leaf, or are the changes just window dressing?

This is nothing but a 'PR move': The press is playing this up as if Goldman is "curbing or cutting pay," says Ryan Chittum in the Columbia Journalism Review. "It's doing no such thing." Giving top executives stock they can't immediately sell is supposed to mean they won't "be as tempted to blow up the world economy again in search of a quick buck," but the bottom line is that their bonuses will probably get bigger.

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