Goldman May Force Bankers to Give More to Charity
The action probably won't work because the core objection to the Goldman pay packages is that they should not be given in the first place. Gifts to charity will probably get Goldman managers tax write-offs, and charitable gifts will do nothing to help earnings or satisfy government concerns that Goldman is setting a pay practice precedent that other banks will follow.
The outrage over Goldman's pay packages is partially based on the government's rejection of the notion that a firm which took federal TARP dollars should reward its senior employees so richly. Goldman shareholders believe that more of Goldman's revenue should go to earnings or be paid out in dividends. One Indiana pension operation which owns Goldman stock, The Central Laborers' Pension Fund, has filed to get the firm to cut payouts.
Goldman's bankers may make the relatively fair argument that they are well-paid because of the firm's results, but public company CEOs have been making the same argument for years, and it has always fallen on deaf ears.