Goldman CEO pockets $6m through stock options
NEW YORK (AP) — Goldman Sachs Group Inc. CEO Lloyd Blankfein has reaped a $6.1 million gain by cashing in more than 90,000 stock options before they expired in November.
Blankfein realised the windfall last Wednesday by exercising his right to buy 90,681 Goldman shares at $82.875, according to a Friday regulatory filing. He then sold the stock at prices ranging between $149.49 and $152.
Goldman shares closed on Friday at $148.08. That's a 79 percent increase from the stock's price in November 2000 when Blankfein received the options.
Goldman is considered the leading Wall Street bank, usually outdistancing its rivals with its trading and investment banking operations. The company beat second-quarter earnings forecasts although its net income fell 83 percent due to the $550 billion it paid to settle civil fraud charges brought by the SEC and a $600 million charge for a British employee bonus tax.
Goldman has been sharply criticised for its high compensation levels after it accepted a $10 billion government bailout during the financial crisis in 2008. It also received $13 billion from insurer American International Group Inc. after the government bailed that company out.
Two other top Goldman executives also profited from expiring options.
Gary Cohn, Goldman's president, made $4.9 million by exercising more than 73,600 options and David Viniar, the bank's chief financial officer, made $4.5 million on more than 67,300 options.