For most of us, Christmas evokes wholesome images of hearth and home, Tiny Tim and good will toward men.
It’s George Bailey clutching Donna Reed as his neighbors pour in to remind him it’s still “A Wonderful Life.”
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Christmas is Bing crooning on the hi-fi and the joyous squeals of wide-eyed children as they spy boxes of all shapes and colors piled beneath the tree.
Like the rest of America, Wall Street, too, is steeped in its Christmas tradition.
It starts with the customary Christmas soiree; held high above Manhattan – catered by five-star chefs replete with lobster, Messrs. Moet and Chandon, and of course, tubs of Beluga.
Dressing for the Occasion
There are squealing sales executives, clad in their best holiday Armani, gathering wide-eyed as they wait for Santa to pass out six- and sometimes seven-figure bonuses celebrating their “Wonderful Life.”
And there’s still Bing crooning at the scores of luxury car dealers and jewelers that remain open long after closing to help the celebrants spread the joy.
This year, as Wall Street implodes from the weight of its own largess, there’s not quite as much joy to spread.
Goldman-Sachs – formerly Wall Street’s biggest investment bank – eliminated 2,500 jobs in the fourth quarter and slashed average pay per worker 45 percent, to $363,654, as the firm posted the first quarterly loss since going public almost a decade ago. That’s down from last year’s average compensation of $661,490 for each of Goldman’s 30,522 employees.
Humility, You Know Who You Are
In a selfless act of Christmas charity, Goldman Sachs Chief Executive Officer Lloyd Blankenfein and six deputies agreed to forgo their year-end bonuses after the firm converted to a bank-holding company and accepted $10 billion from the government to help it survive a financial crisis that eliminated three smaller rivals. Sadly, the firm’s bonus pool, estimated at 60 percent of total compensation, dropped to $6.56 billion or an average $218,193 per employee this year.
No more Bentleys for these guys. They’ll have to settle for a BMW or, heaven forbid, a Lexus.
Here’s the big Christmas mystery …
Must Take Admirable Restraint, Boys
After going on the government dole, just to survive, how can the feds sit idly by while firms like Goldman reward their people for raining hell on the American economy?
At an annual salary that is nearly three times that of the average American autoworker – also overpaid – Goldman’s white collar workforce should be able to muddle through this economic downturn, even without their traditional holiday bonuses.
If Goldman and other former investment banks have money to spare – Goldman got $10 billion and is about to pay $6.56 billion in bonuses — they should be compelled to return remaining funds back to the taxpayers.
While this may not be a classic act of Christmas charity, returning the money they otherwise plan to burn on bonuses to employees who should be facing bigger pay cuts, would be the type of holiday miracle that might even put a smile on the ashen face of Tiny Tim.
John Cohn is a senior partner in the Globe West Financial Group[ based in West Los Angeles. He may be contacted at www.globewestfinancial.com
