[ by Melanie Gretchen and Howard Haykin ]

Goldman Sachs Chairman and CEO Lloyd Blankfein sports a mature 3-day beard, giving him the appearance of someone who might be thinking retirement.  Yet, the firm continues to heap monetary incentives on its chief executive, while Mr. Blankfein conveys an unwavering commitment to the firm. 

For 2012, Goldman Sachs increased Lloyd Blankfein compensation by 75% to $21 million - consisting of $2mn in pay (unchanged from 2011), plus a cash bonus of $5.7mn and a restricted stock award of $13.3 million (both of which nearly doubled).  The Goldman Board, however, extended the vesting time on long-term incentive awards issued to top executives in 2011 by 5 years - pushing the date from December 2013 to December 2018.  By this extension, executives can get up to 150% of such awards if Goldman's average return on equity over the time period reaches at least 15%.

The Board refers to Mr. Blankfein as a "strong leader" who has demonstrated commitment to the bank and its clients, while understanding nuances of the firm's business strategy.  And, under Mr. Blankfein's leadership, the Wall Street bank saw its earnings nearly triple in 2012, a tremendous achievement that followed on the heals of a major cost-cutting program.  All told, Goldman shares rose 41% in 2012 and another 17% in just the first 3-1/2 months of 2013.

Goldman's rivals on the Street have rewarded their chief executives, as well.  Bank of America, for example, rewarded Brian Moynihan with a 73% raise.

For further details, go to [Reuters, 4/15/13] and Who's News stories [Goldman Raises Blankfein Stock Bonus 90%], [The Blankfein Age] and [BofA CEO Rewarded with 73% Raise].

To contact Melanie Gretchen: melanie@compliance-insights.com; Howard Haykin: howard@compliance-insights.com.