Goldman Sachs Unfairly Rewards Employees "At Shareholders' Expense," Lawyer Claims

What, you mean to tell me that Lloyd Blankfein's $19 million paycheck was too much? That's crazy talk! According to John Harnes, an attorney for Goldman Sachs GS investors, the company's compensation plan (which nearly doubled Blankfein's total compensation last year) is unfairly rewarding its employees at the expense of shareholders. The New York Post has the scoop, noting that Harnes was hired by investors who are suing over the pay plan. Harnes argues that Goldman Sachs (the fifth-largest U.S. bank by assets) has lost $50 million in market value since 1999 while simultaneously paying billions in compensation to the firm's 31,000 employees. According to the New York Post, Harness told Delaware Chancery Court Judge Sam Glasscock III that Goldman Sachs “is being run for the benefit of employees rather than shareholders.” This isn't the first time Goldman Sachs has been attacked for its compensation practices. Politicians and labor unions have been equally upset with the company, particularly after Goldman accepted taxpayer aid. The New York Post also states that the firm (which set a pay record in 2007) has already set aside $8.44 billion for its 2011 compensation pool, which only covers the first half of the year. Follow me @LouisBedigian