Ask a Wall Street pro how he responds when markets get slammed like in the past two days and he’d tell you he’s carefully monitoring his positions, which is a roundabout way of saying he’s quantifying the damage. We thought we’d do all the folks at Goldman a favor and calculate what the falling stock market means for their wallets.
The answer is, they’re out $1 billion, which sounds like serious money by any standard.
In early 2014 Goldman paid employees bonuses in the form of $2.2 billion worth of shares. That was a sweet gift on top of whatever cash bonuses the bankers got, but the catch was that recipients could not sell any of their stock until January 2019. Of course, no one wanted to sell when the deferred-share bonuses soared in value. Goldman, in fact, was the best-performing member of the Dow Jones Industrial Average in the months after the 2016 election, as President Donald Trump began stocking his administration with lots of Goldman alumni. By this past March, the 2014 stock grant was worth nearly $4 billion.
Source: Crain’s New York Business