By Jennifer Glickel
DNAinfo Reporter/Producer
MANHATTAN — Goldman Sachs announced Thursday that their top 30 executives will not receive year-end cash bonuses for 2009.
Instead, they will receive bonuses in the form of stock and major investors will have a say in determining that compensation, according to the Wall Street Journal.
The banking giant has long been criticized for its hefty bonuses, which has only intensified in recent months with the company reporting third-quarter profits of $3.19 billion just a year after accepting $10 billion in federal aid to survive the financial crisis, the New York Times reported.
This year, the executives will be paid in the form of 'shares at risk,' which are stocks that cannot be sold for at least five years. Additionally, the firm can retract the stock bonus in the case that the executive does not appropriately account for risk during that time period.
Most of the heat have fallen on Goldman chief executive officer, Lloyd Blankfein, as he spent most of this year defending executive compensation.
"The measures that we are announcing today reflect the compensation principles that we articulated at our shareholders' meeting in May," Blankfein said in a statement Thursday. "We believe our compensation policies are the strongest in our industry and ensure that compensation accurately reflects the firm's performance and incentivize behavior that is in the public's and our shareholders' best interests."
Goldman's profits this year have hit record highs despite the weak global economy. The investment bank is on the path to recording $9 billion net income profits for 2009, in addition to the $16.7 billion set aside for bonuses throughout the first three fiscal quarters.
