New Year bonus bounty for Goldman Sachs chiefs

GOLDMAN Sachs chief executive Lloyd Blankfein ( pictured) capped the most shameful year in banking history by cashing in share bonuses worth £2.5m after tax.

In total, ten top executives at the US investing banking giant indulged in the New Year’s festivities by netting a cool £16.4m.

Departing chief financial officer David Viniar pocketed £2.5m. Vice chairmen Michael Evans and John Weinberg both received £2.8m.

The awards triggered on New Year’s Eve and were based on a share price of $126.24.

Blankfein, who notoriously claimed to be doing ‘God’s work’, has scooped £6.2m from cashing in share awards since October.

The windfalls all came from longterm share awards issued to the executives before 2012. They have reaped the rewards as Goldman’s share price bounced back 41pc last year. The news comes as banks prepare to unveil their bonuses for last year. Goldman has set the benchmark for high pay, with its investment bankers receiving average pay awards of £238,000 last year. Blankfein received a package of £7.8m, despite receiving a 35pc pay cut. The bank will unveil the pay round for 2012 on January 16.

Deborah Hargreaves, chair of the High Pay Commission, said: ‘It is absolutely extraordinary that anyone in banking is taking a bonus at all after the scandals that have hit most banks.’ Goldman Sachs managed to steer relatively clear of controversy last year, and has not been embroiled in the rigging of Libor interest rates. It has also managed to ride out a storm of controversy after former trader Greg Smith described the ‘toxic and destructive’ culture at the bank and claimed that senior executives referred to clients as ‘muppets’ behind their backs.