Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Daily Sheeple
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Goldman Sachs Showers Execs With $100 Million In Early Bonuses To Avoid Trump Tax Hit

% of readers think this story is Fact. Add your two cents.


Goldman Sachs has accelerated nearly $100 million in stock awards to top executives before the end of the year in order to avoid unfavorable changes in the new tax code, according to public filings posted Friday.

The most sweeping overhaul of U.S. tax code in 30 years includes a provision which caps a corporate deduction for executive pay; under current law, corporations can deduct up to $1 million per executive’s base salary, however there’s no cap on deductions for performance-based pay, such as bonuses.

Under the new provisions, both base salary and performance bonuses count towards to $1 million cap – which is why Goldman accelerated $94.8 million in bonuses originally scheduled for January, 2018By paying the bonuses early, the bank will save money on its own tax bill.

Most of Goldman’s executives received early payouts – including of course, CEO Lloyd Blankfein.

In a similar move, Netflix also announced it would change its executive compensation plan for 2018 in response to the new Tax Law.

The company said in a public filing posted Thursday that it’s going to start paying some of its top executives higher salaries, and tie less of their compensation to performance, citing the law change.

Accelerated bonuses aren’t the only thing at least temporarily grinding Goldman’s gears about the new tax code. As we discussed yesterday, in a Friday 8-K filing with the SEC, Trump’s “repatriation tax” is going to knock approximately $5 billion off the company’s profits in Q4 2017 in the form of a one-time repatriation charge.

[T]he enactment of the Tax Legislation will result in a reduction of approximately $5 billion in the firms earnings for the fourth quarter and year ending December 31, 2017, approximately two-thirds of which is due to the repatriation tax.

The remaining 1/3 of Goldman’s $5 billion hit “includes the effects of the implementation of the territorial tax system and the remeasurement of U.S. deferred tax assets at lower enacted corporate tax rates,” making it more difficult for them to deduct past losses from future tax bills.

Goldman, which is due to report fourth-quarter results on January 17, said: “The impact of the tax legislation may differ from this estimate, possibly materially, due to, among other things, changes in interpretations and assumptions the firm has made, guidance that may be issued and actions the firm may take as a result of the tax legislation.”

Previously, Barclays estimated this change would  cost the bank around GBP1BN ($1.35BN).

Barclays said the change had reduced the value of its deferred tax assets and would result in an associated one-off charge of about GBP1bn after tax.

It is expected to drag Barclays full-year earnings further into the red. The bank lost #628m in the first nine months of the year due to write-offs related to pulling out of African ventures.

On the bright side, the US corporate tax rate has been cut from 35% to 21% with the new law, which supposedly will “trickle down” to ordinary Americans.

In reality, all it will achieve is fund even more stock buybacks, and benefit, drumroll – Goldman Sachs. After all, the tax changes were overseen by treasury secretary, Steve Mnuchin – a 17 year Goldman vet who declared the bill to be “great for hardworking workers.”

Delivered by The Daily Sheeple

We encourage you to share and republish our reports, analyses, breaking news and videos (Click for details).


Contributed by Tyler Durden of www.zerohedge.com.


Source: http://www.thedailysheeple.com/goldman-sachs-showers-execs-with-100-million-in-early-bonuses-to-avoid-trump-tax-hit_122017


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.