Goldman cuts CEO Paulson's pay for third year Thursday February 27, 9:39 am ET
NEW YORK, Feb 27 (Reuters) - Goldman Sachs Group Inc. (NYSE:GS - News), which struggled with declining revenues and Wall Street probes last year, cut Chief Executive Henry Paulson's 2002 compensation package by 36 percent, according to a regulatory filing on Thursday.
TGoldman, one of Wall Street's premier firms, posted an 8 percent decline in 2002 earnings. Shaky stock markets meant corporate clients were loathe to issue stocks or engage in acquisitions, two key drivers of Goldman's revenue.
Paulson, 56, joins rival CEOs, such as Citigroup Inc.'s (NYSE:C - News) Sandy Weill and Philip Purcell of Morgan Stanley (NYSE:MWD - News), who will also be lighter in the wallet after last year.
He pulled down a total package worth $12.1 million, including a $6.3 million bonus, according to the company's proxy filing with the Securities and Exchange Commission (News - Websites). In 2001, Goldman paid him $18.9 million, with a bonus of $11.6 million, making it Paulson's third pay cut in a row.
Goldman cut Paulson's cash bonus and stock options grant but handed him $2.6 million in restricted stock awards, compared with no stock awards in 2001.
Goldman's revenue dropped 27 percent last year, forcing the firm to cut costs and staff.
Paulson had to steer the firm through a swath of regulatory probes that also affected rivals such as Merrill Lynch & Co. (NYSE:MER - News) and Citigroup.
Goldman and 11 other investment banks agreed to pay a combined $1.5 billion to settle charges they misled investors by issuing overly bullish research to win banking deals.
Goldman shares fell 27 percent last year, while the S&P 500 Index (NYSE:SPX - News) fell about 23 percent.
Paulson's top lieutenants also took a hit.
John Thain and John Thornton, co-chief operating officers and presidents, each pocketed $11.2 million last year, compared with $16.3 million in 2001.
Citigroup said this month Weill declined to take a stock or cash bonus for 2002 because of the company's financial performance.
Morgan Stanley said on Feb. 19 it cut Purcell's annual pay 26 percent as the firm was hindered by challenging market conditions.