Goldman CFO: Employees Paid More Equity, Less Cash This Year - 16 Dec 2008

http://money.cnn.com/news/newsfeeds/articles/djf500/200812161244DOWJONESDJONLINE000582_FORTUNE5.htm

NEW YORK -(Dow Jones)- Goldman Sachs Group (GS) believes it is more important
than ever to tie employees to the firm, and this year employees will be paid
more in equity and less in cash, Chief Financial Officer
David Viniar said
during a fourth quarter earnings conference call Tuesday.

The 139-year-old investment bank reported its first quarterly loss since
becoming a public company 10 years ago. For the period ended Nov. 30, Goldman
reported a fiscal fourth-quarter net loss of $2.12 billion, or $4.97 a share.

Viniar indicated on the call that fourth quarter earnings didn't meet
expectations, but the earnings "need to be placed in context."

Regarding Goldman's deleveraging, Viniar wouldn't say that is "done forever",
but the firm's hope is that they will grow, not shrink. Much depends on the
market environment.

The residential mortgage market, which has caused huge writedowns for firms,
hasn't affected Goldman to the same extent. Viniar said the exposure to the
residential market wasn't significant, and Goldman had "net losses that were
pretty immaterial in that book." Goldman has a little more than $5 billion in
long residential assets, which includes some shorts as well, he said.

Goldman is trading up 10.8% to $73.65.

-By
Jessica Papini, Dow Jones Newswires; 201-938-2437; jessica.papini@
dowjones.com

  (END) Dow Jones Newswires
  12-16-08 1244ET
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