Goldman Pays $67.5 Million Each to Cohn, Winkelried (Update1)

By Christine Harper



March 7 (Bloomberg) -- Goldman Sachs Group Inc., the most profitable securities firm in Wall Street history, awarded $67.5 million each to Co-Presidents Gary Cohn and Jon Winkelried, boosting their pay 27 percent from the prior year as the company evaded the mortgage losses reported by rivals.
Cohn, 47, and Winkelried, 48, each received 40 percent of their compensation in cash and 60 percent in restricted stock and options, New York-based Goldman said today in a proxy filing with the U.S. Securities and Exchange Commission.
Goldman set a new high for Wall Street pay in December when it granted Chairman and Chief Executive Officer Lloyd Blankfein $68.5 million in salary and bonuses for 2007, topping the prior year's record $54 million award. Goldman's 22 percent jump in profit and 7.9 percent share price gain outpaced rivals last year, including Citigroup Inc. and Merrill Lynch & Co., which ousted their chief executive officers after posting losses from the collapse of the subprime mortgage market.
Charles O. ``Chuck'' Prince, the former Citigroup CEO, and Stan O'Neal, who lost the top post at Merrill, are testifying in Washington today at a congressional hearing on executive pay.
``Our financial performance was very strong relative to our core competitor group,'' Goldman said in today's filing. ``Individual performance in fiscal 2007 was exceptional and contributed significantly to our financial results.''
Today's proxy also showed the company paid Chief Financial Officer David Viniar $57.5 million and awarded $44 million to Edward Forst, who oversees investment management.
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Goldman's shareholders have submitted two proposals for the firm's annual meeting next month that relate to executive compensation. One seeks to stop new awards of stock options to Goldman executives, while another aims to give shareholders a vote on executive pay. The company's board recommends voting against both proposals.
In addition to salary and bonuses, Goldman's top executives also made money on their investments in private equity, venture capital and hedge funds managed by Goldman Sachs. Blankfein's profit for the year totaled $11.1 million, the proxy shows. Cohn made $6.5 million, Winkelried $2.2 million, and Viniar $6.1 million.
Before he was promoted to chief executive in 2006, Blankfein was both president and chief operating officer, responsibilities now split between Cohn and Winkelried.
Goldman rose $1.60, or 1 percent, to $160.25 at 9:48 a.m. in New York Stock Exchange composite trading. The shares are down about 25 percent this year.
To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net. Last Updated: March 7, 2008 09:51 EST