Goldman Sachs, Morgan Stanley, and JPMorgan Chase have all revealed major cuts in executive compensation made in the fourth quarter of 2009 in what is widely considered a concession to mounting political pressure from President Barack Obama and other lawmakers, reports Bloomberg. The three firms allocated a combined total of $39.9 billion in pay for 2009, which fell short of earlier estimates for a figure around $46.1 billion as well as the record high set in 2007, when the firms doled out $44.7 billion.
Goldman Sachs slashed $519 million from its compensation pool in the fourth quarter, which brought the total annual pay costs to $16.2 billion or 36 percent of revenue - a record low since the company went public in 1999. Goldman put aside $500 million dollars for charitable giving.
JPMorgan cut 80 percent off third quarter investment bank compensation last quarter, setting aside $549 million for pay. The total investment bank pay for 2009 was $9.33 billion. Meanwhile, Morgan Stanley paid out a total of $14.4 billion in 2009, less per employee than in 2007, thanks to the addition of 15,000 new staffers in June.
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