Skip to comments.Goldman Sachs Trader sues over skimpy $8.25 million bonus
Posted on 06/21/2014 4:51:04 PM PDT by Wolfie
Goldman Sachs Trader sues over skimpy $8.25 million bonus
A former Goldman Sachs (GS) trader, still furious at getting only an $8.25 million bonus in 2010, has taken the giant investment bank to court to get paid millions more.
Deeb Salem says he helped Goldman earn more than $7 billion and that a little more money in his pocket would only be fair considering all his contributions. He wants about $5 million in additional pay from Goldman.
In his petition filed last week in New York's State Supreme Court, Salem said things at Goldman started to unravel when he got a written warning about his 2007 job self-evaluation, Bloomberg reports. In that self-evaluation, Salem reportedly discussed a short squeeze involving derivatives linked to subprime home loans in 2007.
His own words were later used by U.S. Senators investigating whether Goldman bet against the mortgage market in 2006 and 2007 in such a way that helped it reap massive rewards as the housing sector tanked.
You just don't talk about such things in your job evaluations at Goldman, and Salem said his pay was docked as punishment for those comments.
Salem watched his annual bonus go from $15 million in 2009 to $8.25 million the next year and $3 million in 2011. He left the firm in 2012 but soon filed a complaint about his 2010 pay with the Financial Industry Regulatory Authority, Wall Street's self-funded regulator. He tried to get more than $16 million from Goldman in arbitration, including nearly $7 million in deferred stock he felt he was owed. But the authority sided with Goldman Sachs.
Now, Salem wants New York's state court to overturn that regulatory decision. Goldman has argued that it has the final say on all bonus amounts and that Salem was aware of the policy.
Goldman's lawyer, Andrew Frackman, said during a hearing on the case that Salem received more than $35 million in pay over six years and was better paid than his peers, Bloomberg reports. "He made a ton of money," Frackman said at the hearing, according to Bloomberg. "He's not entitled to more simply because he would like to have been paid more. If that were the case, you'd have traders and bankers in here every day of the week."
All that for playing the lottery?!
They work for bananas.
Life is tough.
Another productive member of society.
I hope he wins. Looks like he got screwed here.
You are ignorant. You are not a trader. You do not understand that matter of which you speak. This is not sarcasm. If you call trading the “lottery” then you are in bed with the socialists.
I side with the bank - it is the industry standard that the employer can give the trader whatever bonus it wants.
...unless his employment contract called for a % payout - then he really was cheated.
When you pay peanuts, you get monkeys.
There is truly no honor among thieves.
Deeb? I think he’s more of a Dweeb.
Well, if he loses, he’ll have to figure out a way to get by on the $15M he still made.
I simply have a HARD TIME trying to figure out how to use all that money, even in a lifetime.
Build something real...then you can talk.
How much money did wall street accept from the federal government to bail their failed asses out? Talk about socialism.
Cheaters stealing from thives.... isnt that normal?
He and others like him basically created the financial collapse by bidding up stocks then betting against as they pulled the rug out from the US economy. They knew that congress would come to their rescue by giving them trillions. Top pay for it money was printed out of thin air. Prices for everything have gone up.
Know wonder this arrogant son of a $#@! wants more money.....
BTW my cousin in law. He used to work at Goldman Sachs for 25 years. He now works for a Japanese bank and has appeared several times on a CNBC financial show. Look up Rick Sherlund.
I take it that your screen name is supposed to be broken down as "im pimp" vs. "imp imp"
Spoken like a central planner.
Nothing wrong with doing one’s homework to get future actions correct. Something the geniuses on wall street apparently forgot to do.