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Shareholders ask Goldman to cut bonuses - report

(Reuters) - Some of Goldman Sachs Group Inc's <GS.N> largest shareholders have asked the company to cut the size of its bonus pool and pass along more of its profits to investors, the Wall Street Journal reported, citing people familiar with the situation. Although the shareholders are not pushing for a huge cut, they feel that Goldman should better reward shareholders for this year's rebound, the paper said.

20 November 2009 06:22 GMT

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(Reuters) - Some of Goldman Sachs Group Inc's largest shareholders have asked the company to cut the size of its bonus pool and pass along more of its profits to investors, the Wall Street Journal reported, citing people familiar with the situation.

Although the shareholders are not pushing for a huge cut, they feel that Goldman should better reward shareholders for this year's rebound, the paper said.

Goldman has faced public anger for setting aside nearly $17 billion (10.2 billion pounds) for year-end bonuses after receiving a $10 billion taxpayer bailout during the financial crisis. The bank has paid back the government money.

Goldman has reported robust profits in the past two quarters, with net income in excess of $3 billion.

The shareholders are also concerned about a change in the company's financial statements that increased the firm's total headcount by adding temporary employees and consultants, the paper said.

Due to the change, it looked like Goldman employees are on pace to earn $717,000 per person in 2009, the Journal said.

The paper quoted a Goldman spokesman saying shareholders "have historically been more focussed on the absolute return on equity and on book value per share growth" than per-share earnings.

Goldman could not be immediately reached for comment outside regular U.S. business hours.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Kim Coghill, John Stonestreet)

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