Bloomberg reports that Salem said in an arbitration hearing that he was led to believe that his 2010 bonus would be $13m, down from a $15m award for 2009 when he was paid more than CEO Lloyd Blankfein. Instead, Salem said his bonus was unfairly docked because of a written warning he received about his 2007 self-evaluation.
Salem, 35, said the $8.25m bonus for 2010 didn’t reflect his contributions, while Goldman Sachs argued he was aware that the firm could pay him whatever it wished and that the company considered his conduct in determining compensation. Salem said promises from executives kept him around for another year before a $3m bonus led him to jump to a hedge fund.
In January 2011, Salem told his mother, who was staying with him because her house had burned down on Christmas, that he expected at least $13 million for 2010, according to the arbitration transcript.
'Let’s be very clear: I was one of the most sought-after investment professionals in the mortgage industry', Salem said during the February 25th hearing.
'These claims are utterly ridiculous, which is why they were rejected by a Finra panel, and unworthy of any further response', a Goldman spokesperson said.
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