Lloyd Blankfein, the chairman and chief executive of Goldman Sachs, is expected to get a bonus of more than $40 million for last year.
Lloyd Blankfein, the chairman and chief executive of Goldman Sachs, is expected to get a bonus of more than $40 million for last year.

Buzz builds over Goldman pay



An announcement on the size of the annual bonus of the chief executive of Goldman Sachs Group is imminent, but whether or not the figure breaks the record US$67.9 million (Dh249.4m) of two years ago, there will be widespread criticism that the bank has been "tone deaf" in its approach to the financial crisis. Efforts to deflect criticism and keep regulators at bay have already prompted Goldman to change its bonus strategy, curbing compensation in the fourth quarter of last year and eliminating cash bonuses for top managers, instead paying them in stock.

But the Wall Street investment bank still may face a storm of criticism when it announces the bonuses of its top executives even as it seeks to trim the headline numbers after a year of record profits. "They have made a number of moves to try to ameliorate the issues," said Alan Johnson, a Wall Street compensation consultant. "I would be shocked if it didn't have an impact on his and everybody else's total."

Mr Johnson estimated that Lloyd Blankfein, Goldman's chief executive, would get a bonus of more than $40m for last year, a period for which Goldman reported record earnings of $13.39 billion. That would fall well below the $67.9m he received in 2007, but would be a considerable improvement on his 2008 bonus, which was nothing. The Times of London reported on Monday that Goldman could pay Mr Blankfein as much as $100m, thumbing its nose at Barack Obama, the US president, and his recently announced intention to clamp down on the banking industry. The newspaper cited bankers who were in Davos, Switzerland, for the World Economic Forum as its sources.

The bank denied the report, calling it "speculative nonsense". "Underneath that cool exterior, it is apparent that there is some very great sensitivity at Goldman about executive compensation these days," said Scott Tangney, a consultant with the New York public relations firm Makovsky. "Because of the government pressure and the public scrutiny, it has already forced Goldman to handle executive compensation in a very different way."

Last month, Goldman sidestepped controversy over its ballooning bonus pool by limiting compensation to three quarters and giving $500m to charity. Before the shift, Goldman was on pace to surpass its record payout of $20bn in 2007. The bonus total for the three quarters was $16.2bn. While political pressure could affect high-profile executives such as Mr Blankfein, it leaves open the possibility of outsize paydays for lesser-known executives and star traders who helped the firm earn a record profit last year.

And rather than setting a different example, business executives in the UK are seeking to emulate their banking peers. This week it was announced that the British retailer Marks & Spencer had agreed a "golden hello" of up to £15m (Dh87.94m) for its new chief executive, Marc Bolland, sparking renewed criticism over its boardroom practices. The clothing, food and home goods retailer said on Monday that Mr Bolland would start on May 1, ending a protracted wrangle with his previous employer, Wm Morrison Supermarkets.

Mr Bolland will get a basic salary of £975,000, an annual bonus of as much as 250 per cent of his salary, and an award of shares under the company's performance share plan which in 2010-2011 will be worth 400 per cent of his salary. M&S will also compensate Mr Bolland for a number of bonuses he forfeited by relinquishing his role as chief executive of Morrison, Britain's fourth-largest grocer. "This is a bad start for the new regime at M&S," said PIRC, a research and consultancy company that advises shareholders on corporate governance issues. "We are opposed to this sort of golden hello. It distorts the market for executives, and compensating directors for the loss of bonuses and incentives at their previous company makes a mockery of the idea that the already high levels of remuneration act to retain key people."

In a separate move, it was announced that Adam Crozier, the former chief executive of the Football Association and the Royal Mail, the postal service, had been hired by ITV, an independent commercial television channel. He could earn up to £16m over the next five years, plus a further £5m to £6m if ITV performs better than its peers. * with agencies @Email:rwright@thenational.ae

Squad

Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas) 

Results

Stage 7:

1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29

2. Sam Bennett (IRL) Deceuninck-QuickStep - same time

3. Phil Bauhaus (GER) Bahrain Victorious

4. Michael Morkov (DEN) Deceuninck-QuickStep

5. Cees Bol (NED) Team DSM

General Classification:

1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28

2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35

3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02

4. Chris Harper (AUS) Jumbo-Visma - 0:01:42

5. Neilson Powless (USA) EF Education-Nippo - 0:01:45

Scoreline

Liverpool 4

Oxlade-Chamberlain 9', Firmino 59', Mane 61', Salah 68'

Manchester City 3

Sane 40', Bernardo Silva 84', Gundogan 90' 1

The specs: 2017 Dodge Ram 1500 Laramie Longhorn

Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km

if you go

The flights

Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes. 

The hotels

Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes. 

When to visit

March-May and September-November

Visas

Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.

Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

UAE currency: the story behind the money in your pockets

'The Coddling of the American Mind: How Good Intentions and Bad Ideas are Setting up a Generation for Failure' ​​​​
Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse