Goldman Sachs Swerves Tax With Bonus Payout
Goldman Sachs paid out an early bonus to its investment bankers, saving it millions in tax.
The bank rewarded the U.S.-based partners, normally awarded bonuses in January, in the last week of December ahead of the new year tax changes which would have significantly increased the bill.
Ten board-level executives shared almost $100 million, with chairman and chief executive Lloyd Blankfein pocketing $8 million. Co-chief operating officer David Solomon and vice-chairman Pablo Salame both received $17 million, according to a report on the news site «CNN Money.»
Moving the cost of the bonuses forward reduced last year's profits, which are subject to a higher corporation tax rate. However Goldman warned it will still take a $5 billion hit to profit as a result of U.S. President Trump’s changes, thanks to a new charge on overseas earnings.
