Paulson Gets 21 Percent Pay Hike to $38 Million
In return for guiding the firm to its second record year of earnings in a row and a 22 percent rise in its stock price, Goldman Sachs paid CEO Hank Paulson $38 million in salary, restricted sotck and options. According to a Securities and Exchange Commission filing, Goldman on Tuesday gave Paulson 224,777 restricted stock shares worth about $30 million when priced last month. Of these shares, 89,910 vested immediately and were withheld by the firm to cover Paulson’s tax obligations while the remaining 134,867 shares vest in November 2008. The 59-year-old Paulson was also granted stock options on 220,392 shares valued by the firm at about $7.3 million, with 40 percent vesting immediately. Paulson, who received a salary of $600,000 and no cash bonus this year, now holds 3.89 million shares. Overall, Paulson’s compensation rose more than 21 percent from last year. “The compensation considers the outstanding financial performance of the firm and Hank’s leadership, the share price performance and the competitive environment,” spokesman Lucas van Praag said. The dude’s got a point.
Wall Street CEOs Get Big Bonuses [Fox News]
All of a Sudden, Mack Is Looking Like a Wise Choice
As the chart at right illustrates, Morgan Stanley stock has been a dud this year, especially when compared to some of its Wall Street brethren like Lehman and Goldman. (Morgan’s 19% ROE also lags Goldman’s 25%.) After a brief pick-up in the summer after John Mack’s return, the stock flatlined this fall, picking up only recently after Mack presented his strategic growth plan in mid-November. Yesterday saw another pop in the stock price following stronger-than-expected 4Q numbers and the announcement of a $1.75 credit-card acquisition.
Morgan Stanley Overhauls Itself [WSJ]
Morgan Stanley’s Net Rises 49% [WSJ]
Morgan Stanley Posts 49% Gain [NY Times]
Big Call By a Little Guy: Sharp Correction in ‘06
Just two months after getting bounced from Prudential and landing at Knight Capital Group, veteran technical analyst Ralph Acampora is making headline-grabbing predictions about the stock market’s performance next year. Acampora thinks stocks will rise another five percent in the first half of the year before going into a free-fall that will erase 20 to 25 percent of market value and create “classic four-year low.” Meanwhile, he expects the yield on 10-year treasurys to surpass 5 percent, squelching the real estate boom in the process.
Pro Sees Dow Dive in ‘06 [NY Post]
Veeps and Associates Have Strong Year at Bear
Speaking of the Bear paying out, an anonymous tipster left a comment yesterday about how comp ranges for mid-level professionals at the firm have shaken out this week. The word is that first year associates took home $250,000 to $300,000 while first year vice presidents banked between $400,000 and $500,000. How about other levels? Other firms?
