Goldman Sachs boss Lloyd Blankfein hit with pay cut after net revenue falls
Goldman Sachs boss Lloyd Blankfein has been hit with a 1 million US dollar (£800,000) pay cut after the American investment banking giant suffered a slip in net revenue in 2016.
A regulatory filing by Goldman Sachs showed that the bank's compensation committee reduced Mr Blankfein's package by around 4% to 22 million US dollars (£17.8 million) following weaker company performance last year.
His fixed salary held steady at 2 million US dollars (£1.6 million) but Mr Blankfein saw his variable cash bonus slip to 4 million US dollars (£3.2 million) from 6.3 million US dollars (£5 million) a year earlier.
The Goldman CEO was also paid 16 million US dollars (£12.9 million) worth of stock units - a total which relied on meeting business performance targets.
"The committee determined a reduction for 2016 was appropriate in light of, among other factors, the firm's decrease in net revenues compared to 2015, primarily due to the challenging operating environment during the first half of 2016, particularly during the first quarter," the filing, lodged with the Security and Exchange Commission, said.
It marks the second consecutive annual pay cut for the chief executive, who also saw his total compensation package fall by 1 million US dollars to 23 million US dollars (£18.5 million) for 2015.
It comes after the investment bank reported a 9% drop in total net revenues to 30.6 billion US dollars (£24.7 billion) for the year ending December 31 2016.
However, a fall in litigation costs last year meant net earnings rose from 6 billion US dollars (£4.8 billion) to 7.4 billion US dollars (£5.9 billion) in 2016.
Cost-cutting measures - including a 7% reduction in its global workforce - helped full-year operating expenses drop to their lowest level since 2008 at 20.3 billion US dollars (£16.4 billion).
Goldman employees have also shared out a smaller pay and bonus pot worth 11.65 billion US dollar (£9.4 billion), down 8% from 2015, "reflecting a decrease in net revenues and the impact from expense savings initiatives", Goldman Sachs said in its full-year results released in January.