Deeb Salem, a former Goldman Sachs trader, says that after making the company in excess of $7 billion in 2010, his $8.25 million raise was not enough compensation.
1. What percentage drop was Salem’s 2010 raise as compared to his 2009 raise? What percentage drop was Salem’s 2011 raise as compared to his 2010 raise?
2. What did Salem discuss in his self evaluation in 2007? Why did this upset Goldman Sach’s administration?
3. When Goldman Sachs records the journal entries for Salem’s bonuses, what accounts and financial statements are affected?
Peterson, K. (2014). Trader Sues Over Skimpy $8.25 Million Bonus. CBS Newswatch, June 20 (Retrievable online at http://www.cbsnews.com/news/trader-sues-over-skimpy-8-25-million-bonus/)