Goldman bankers cap pay at £1m

25th Jan 2010 08:25

Goldman Sachs is capping the total pay of its top 100 employees in London at £1m in an effort to appease the British government, keen to try and rein in bankers' salaries.The Wall Street bank's most senior staff over here are exercising restraint in response to calls from chancellor Alistair Darling to curb excessive pay following the financial crisis.Executives below partner-level will still get well over £1m, although any money above seven figures will be paid in deferred stock.Goldman will this week tell its 32,500 staff how much they all earned during 2009 and what the impact of Britain's 50% 'super tax' on bonuses of more than £25,000 will be.Last week, it reported near-record results as fourth quarter earnings of $8.20 a share smashed forecasts for $5.20. The total set aside for pay and bonuses for the year was $16.2bn versus $20.2bn in 2007.'We're not blind to the pain and suffering still going on around the world and we're not deaf to the calls for restraint. We heard them,' says Goldman Sachs' finance director, David Viniar.There are also reports that Barclays is deferring 2009 bonuses for directors and senior staff for up to three years.The bank is expected to reveal in March that bonuses will be paid mostly in shares over three years.