Posted by: Lily Mei
One Goldman Sachs executive thinks the bank’s rich bonuses are a good thing, and he’s not afraid to say it.
Bumper payouts to bankers should be seen as part of a longer-term investment in London’s economy, the vice chairman of Goldman Sachs International, Brian Griffiths, told a debate on ethics at St. Paul’s Cathedral in London on Tuesday.
Defending lavish bonuses expected at the U.S. investment bank, Mr. Griffiths said he was not “ashamed” of his bank’s compensation package, which has inflamed the bonuses debate, Reuters reported.
The British public should “tolerate the inequality as a way to achieve greater prosperity for all” Mr. Griffiths, a former adviser to Margaret Thatcher when in power, said at the public meeting examining what role morality should play in the marketplace.
Goldman last week reignited the fight over excessive compensation after setting aside $5.4 billion for pay in the third quarter alone. It is on course to pay out $20 billion this year, infuriating critics in part because it comes so soon after repaying $10 billion in taxpayer bailout funds.
Mr. Griffiths said that if bonuses were capped the industry’s highest fliers would leave London’s financial services sector for other countries.
“I believe that we should be thinking about the medium term common good, not the short term common good… we should not, therefore, be ashamed of offering compensation in an internationally competitive market which ensures the bank businesses here and employs British people,” he said.
He also said Goldman rewarded only those who showed a commitment to company values and not simply to whoever brings in the most profit.
Click here to read more
No comments:
Post a Comment