A Plan for Goldman Sachs Excessive Compensation

by Karen Topakian

Goldman Sachs can’t quite figure out how to compensate their employees with a giant bonus without incurring the wrath of their investors and the federal government. So they developed a new plan. Pay them an ungodly amount and demand that they turn a percentage over to charity. Therefore, not really benefiting from the largess. Though they will benefit tax-wise from their substantial charitable contributions.

If Goldman Sachs is wondering where to direct those charitable gifts, how about starting with giving it back to the people and communities who lost their jobs or businesses because of Goldman Sachs merger and acquisition activities?

They could start with the 215 Gillette workers in South Boston who lost their jobs manufacturing razors when Proctor & Gamble bought out Gillette with Goldman Sachs’ help and moved their jobs to Mexico and Poland.

Or the 1,200 people in Lawrence, MA who worked at a P&G packaging plant when their jobs moved to Mexico. Also as a result of the Goldman Sachs orchestrated acquisition of Gillette.

I bet the good people at Merrimack Valley Project, a coalition of labor and church organizations, could put the diverted bonuses to very good use.

Comments

  1. Diana Lee says:

    Karen, I agree, but really, that’s the way philanthropy happens anyway. The whole system of charitable tax deductions leads to foundations as tax shelters. The foundation assets are mostly invested in the stock market, and nonprofit organizations are funded, essentially, by the ‘excess’ of capitalism. I don’t mean to dismiss the truly philanthropic intentions of many people, or the considerable good that is accomplished in this system, but it’s disturbing to me that we increasingly leave the welfare of our most vulnerable citizens to the marketplace in this way.

  2. SEC fine = 2 wks of profit at Goldman. Slap on the wrist or an incentive to misbehave?

    See: http://euandus3.wordpress.com/2010/07/19/990/

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