Published by Finews.asia – 2nd Jan 2018
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 2017 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 2017 profits, which are subject to a higher corporation tax rate. However Goldmans 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.