Thursday, January 3, 2013

Goldman jumped to avoid fiscal cliff

Goldman Sachs rang in the new year by helping 10 executives dodge the fiscal cliff, paying out their stock awards before the beginning of 2013, meaning they avoided an automatic tax rate increase.  The bank accelerated delivery of $US65 million ($61.9 million) in stock awards, including those for CEO Blankfein.

The awards are restricted stock granted for years before 2012, according to 10 separate filings made public about 8pm New York time on December 31.  Each executive surrendered 45 per cent to 50 per cent of their awards in order to pay taxes, according to the filings.

Goldman Sachs, the fifth-biggest US bank by assets, typically delivers executives' restricted stock during January. The decision to speed up the delivery came as the US Congress debated and ultimately passed a bill that would increase tax rates on capital gains and on individuals who make taxable income of $US400,000 or more.....

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