Goldman CEO Takes One For The Team
Over the weekend, Goldman CEO Len Blankfein agreed to accept a mere $9 million in bonus this year. Quite a difference from his $ 68 million+ bonus of two years ago, isn't it?
Not only that, but all of the $9 million will be paid in Goldman stock - none in cash. Two years ago, around $30 million of the 68 was paid out in cash.
I've got no personal bone to pick with Mr. Blankfein, and I'm very leery about inciting envy and anger. I don't envy him what he's paid, whether it's $9 million or $68 million. He's cut his deal with his employer. It's his business.
Then again, as we've pointed out in this blog and you may have seen elsewhere, for the the last couple of years Goldman's been on the dole. They accepted bailout money and, in spite of what they now say, there was a chance they could have gone down the tubes were it not for the money the government gave them, as well as the special privileges they received when the government guaranteed the money owed them by AIG. Again, we've covered this in some detail before.
There are two important points I want to bring out here. One is this issue of envy and anger. Envy's bad for us. Some of us call it a sin to be envious. If you're not happy with your own situation, don't envy others. Do something about whatever it is you're unhappy about. You don't have to believe envy is a sin to know it's simply bad for you. You get nothing from being envious and it ultimately demeans you. It certainly isn't something that builds up your character. Avoid it, OK?
But there's still that matter of anger. I'm not the only one who's commented on this. There's a growing sense of anger at the sort of special deals Goldman (and others) have received from the government. There's a growing anger over what people see as unfair advantage or privilege being given to some people who are, by any accounting, already quite rich, even as so many others have lost their jobs and are struggling.
That anger brings me to my second point. What we should focus on is "justice." Justice is a virtue. We'll all better off with more justice in this world (as long as we live in a society where "mercy" is also considered a virtue). If we focus on justice, our time and energy is well spent. Not only will we have no time to engage in envy, but if we do get angry based upon our understanding that something unjust has taken place, then our anger is righteous, not simply based on our feelings of the moment, or some random anger directed at someone because we got up on the wrong side of the bed or we resent the fact that someone has more than we do.
So if you're thinking about justice and and feeling righteous anger when you think about the Blankfeins of the world, that's fair. As a matter of fact, I suspect Blankfein's feeling some of that anger - righteous and otherwise - being directed at him and Goldman right now. And so he publicly announces his relatively "small" bonus of $ 9 million.
Of course, a really good question that pops into my head is exactly what he ever did for the $9 million. Is there some special, unique skill the man has that called for being compensated this way? Or maybe he and his firm provided some benefit to society - something that benefits all of us to such a degree that he deserves such compensation. Or maybe he works really hard for his money. Of course, if you've every worked hard for a living, you might wonder, just how hard Mr. Blankfein could possibly have worked for even the $9 million bonus.
Well, I'm getting off track here. The Goldman CEO isn't unique in getting big bonuses. So I guess we could ask the same questions of dozens, perhaps hundreds of others.
What does this industry of financial services actually provide in goods or services to others that explains what some of these characters make?
Not only that, but all of the $9 million will be paid in Goldman stock - none in cash. Two years ago, around $30 million of the 68 was paid out in cash.
I've got no personal bone to pick with Mr. Blankfein, and I'm very leery about inciting envy and anger. I don't envy him what he's paid, whether it's $9 million or $68 million. He's cut his deal with his employer. It's his business.
Then again, as we've pointed out in this blog and you may have seen elsewhere, for the the last couple of years Goldman's been on the dole. They accepted bailout money and, in spite of what they now say, there was a chance they could have gone down the tubes were it not for the money the government gave them, as well as the special privileges they received when the government guaranteed the money owed them by AIG. Again, we've covered this in some detail before.
There are two important points I want to bring out here. One is this issue of envy and anger. Envy's bad for us. Some of us call it a sin to be envious. If you're not happy with your own situation, don't envy others. Do something about whatever it is you're unhappy about. You don't have to believe envy is a sin to know it's simply bad for you. You get nothing from being envious and it ultimately demeans you. It certainly isn't something that builds up your character. Avoid it, OK?
But there's still that matter of anger. I'm not the only one who's commented on this. There's a growing sense of anger at the sort of special deals Goldman (and others) have received from the government. There's a growing anger over what people see as unfair advantage or privilege being given to some people who are, by any accounting, already quite rich, even as so many others have lost their jobs and are struggling.
That anger brings me to my second point. What we should focus on is "justice." Justice is a virtue. We'll all better off with more justice in this world (as long as we live in a society where "mercy" is also considered a virtue). If we focus on justice, our time and energy is well spent. Not only will we have no time to engage in envy, but if we do get angry based upon our understanding that something unjust has taken place, then our anger is righteous, not simply based on our feelings of the moment, or some random anger directed at someone because we got up on the wrong side of the bed or we resent the fact that someone has more than we do.
So if you're thinking about justice and and feeling righteous anger when you think about the Blankfeins of the world, that's fair. As a matter of fact, I suspect Blankfein's feeling some of that anger - righteous and otherwise - being directed at him and Goldman right now. And so he publicly announces his relatively "small" bonus of $ 9 million.
Of course, a really good question that pops into my head is exactly what he ever did for the $9 million. Is there some special, unique skill the man has that called for being compensated this way? Or maybe he and his firm provided some benefit to society - something that benefits all of us to such a degree that he deserves such compensation. Or maybe he works really hard for his money. Of course, if you've every worked hard for a living, you might wonder, just how hard Mr. Blankfein could possibly have worked for even the $9 million bonus.
Well, I'm getting off track here. The Goldman CEO isn't unique in getting big bonuses. So I guess we could ask the same questions of dozens, perhaps hundreds of others.
What does this industry of financial services actually provide in goods or services to others that explains what some of these characters make?
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