Goldman Said To Speed Up Exec Stock Awards To Avoid Higher Tax

Old Goldman Sachs

Goldman Sachs accelerated delivery of $65m in stock awards to 10 executives, including CEO Lloyd Blankfein, helping them avoid higher tax rates that take effect this year.

Bloomberg reports that the awards are restricted stock granted for years prior to 2012, according to 10 separate filings made public at about 8 p.m. New York time on December 31st.

Each executive surrendered 45% to 50% of their awards in order to pay taxes, according to the filings. The firm’s stock climbed 41% in 2012, its first annual gain since 2009.

Goldman Sachs, the fifth-biggest U.S. bank by assets, typically delivers executives’ restricted stock during January. The decision to speed up the delivery came as the U.S. Congress debated and ultimately passed a bill that would increase tax rates on capital gains and on individuals who make taxable income of $400,000 or more.

'The December delivery of shares went to a wider group of employees than the named executive officers' who were included in the filings, said Michael DuVally, a spokesman for the New York-based firm. He declined to comment on the reason for the accelerated delivery or on which other employees received stock early.

Hit the link below to access the complete Bloomberg article:

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