Best of Buds

[don]

To be precise, it is Goldman’s ties to Ruth J. Simmons, Brown’s beloved president, that has some students and alumni buzzing.

The trouble began in December, when Ms. Simmons’s long tenure on Goldman’s board — which, until then, it seems, had gone virtually unnoticed at Brown — suddenly came to the fore. Dr. Simmons, it turned out, was among the 10 people who decided how big those Goldman bonuses would be — including the $9 million payout for the bank’s chairman and chief executive, Lloyd C. Blankfein.

The Bears — the ones at Brown, not on Wall Street — roared.

It is a remarkable reversal for Dr. Simmons, 64, and, indeed, for the stature of corporate directorships. A spot on a board, particularly at a moneymaker like Goldman, used to be considered a plum job. The demands were relatively modest compared with the rewards. Dr. Simmons, for instance, was paid $323,539 last year for her work on the board, and will soon leave her position at Goldman with stock that is currently worth about $4.3 million. That was on top of her salary at Brown, which was $576,000 this year.

An e-mail message sent among a group of alumni showed surprise that Dr. Simmons was deciding Mr. Blankfein’s bonus, saying, “Who knew Brown had this much power?”

Corporate America has a long history of stocking boards with people plucked from academia and elsewhere. Roger S. Berlind, the theatrical producer, sat on the board of Lehman Brothers. Gen. Tommy R. Franks sat on the board of Bank of America. And Beverly Sills, the operatic soprano, served on the board of American Express. But now, in this postbailout world, would-be corporate directors are having second thoughts.

“Directors are looking in the mirror and thinking, this was a great gig a few years ago, but do I necessarily want to sign up for this again?

”Goldman, for its part, seems unbowed.


Change, change, change...change for fools....


http://www.nytimes.com/2010/03/02/bu...l?ref=business

[GRG55]

Re: Best of Buds

To be precise, it is Goldman’s ties to Ruth J. Simmons, Brown’s beloved president, that has some students and alumni buzzing.

The trouble began in December, when Ms. Simmons’s long tenure on Goldman’s board — which, until then, it seems, had gone virtually unnoticed at Brown — suddenly came to the fore. Dr. Simmons, it turned out, was among the 10 people who decided how big those Goldman bonuses would be — including the $9 million payout for the bank’s chairman and chief executive, Lloyd C. Blankfein.

The Bears — the ones at Brown, not on Wall Street — roared.

It is a remarkable reversal for Dr. Simmons, 64, and, indeed, for the stature of corporate directorships. A spot on a board, particularly at a moneymaker like Goldman, used to be considered a plum job. The demands were relatively modest compared with the rewards. Dr. Simmons, for instance, was paid $323,539 last year for her work on the board, and will soon leave her position at Goldman with stock that is currently worth about $4.3 million. That was on top of her salary at Brown, which was $576,000 this year.

An e-mail message sent among a group of alumni showed surprise that Dr. Simmons was deciding Mr. Blankfein’s bonus, saying, “Who knew Brown had this much power?”

Corporate America has a long history of stocking boards with people plucked from academia and elsewhere. Roger S. Berlind, the theatrical producer, sat on the board of Lehman Brothers. Gen. Tommy R. Franks sat on the board of Bank of America. And Beverly Sills, the operatic soprano, served on the board of American Express. But now, in this postbailout world, would-be corporate directors are having second thoughts.

“Directors are looking in the mirror and thinking, this was a great gig a few years ago, but do I necessarily want to sign up for this again?

”Goldman, for its part, seems unbowed.


Change, change, change...change for fools....


http://www.nytimes.com/2010/03/02/bu...l?ref=business

Too damn funny for words...

Goldman Sachs concedes it could be damaged by public outrage over pay

Wall Street bank includes 'negative publicity' in a list of risks to its prosperity and says responding to criticism can be 'time consuming and expensive'

...For the first time this year, the Wall Street bank's annual report includes "negative publicity" in a list of risks to its prosperity, alongside economic conditions, market volatility, competition and regulatory uncertainty.

The admission comes at a difficult time for Goldman which has been forced onto the back foot to defend its bonus payouts, its dealing in mortgage-backed securities, its involvement in the collapse of the insurer AIG and, most recently, its role in helping the Greek government to take on unsustainable quantities of debt.

"The financial crisis and the current political and public sentiment regarding financial institutions has resulted in a significant amount of adverse press coverage, as well as adverse statements or charges by regulators or elected officials," says Goldman's disclosure.

It says responding to criticism is "time consuming and expensive" and can distract senior management, while government scrutiny or bad press can have an impact on Goldman's reputation and on the "morale or performance" of employees...

...Last month, Goldman lost a long-serving board member when Ruth Simmons, the president of Brown University, announced she intended to stand down after a decade as a director. Although she cited pressure on her time, students had been critical of her association with Goldman – one undergraduate told Brown's student paper that Simmons had "brought shame" on the university...

[GRG55]

Re: Best of Buds

Too damn funny for words...

Goldman Sachs concedes it could be damaged by public outrage over pay

Wall Street bank includes 'negative publicity' in a list of risks to its prosperity and says responding to criticism can be 'time consuming and expensive'...

Too damn funny for words - Part II...

Goldman board rejects shareholder demands on pay

NEW YORK
Mon Mar 1, 2010 10:27am EST

NEW YORK (Reuters) - Goldman Sachs Group Inc's (GS.N) board has rejected demands from shareholders that the firm investigate recent compensation awards, recoup excessive compensation and reform pay practices.

Wall Street's dominant bank, criticized for paying billions of dollars in bonuses soon after the taxpayer bailout of the banking industry, reported the board's decision in a regulatory filing on Monday.

Goldman reported the shareholder demands last year and said at the time that its board was considering them...