Lloyd Blankfein Net Worth

What Is Lloyd Blankfein's Net Worth and Salary?

Lloyd Blankfein is an American finance executive who has a net worth of $1.6 billion. Lloyd Blankfein served as the Chairman and CEO of Goldman Sachs from 2006 to 2018, guiding the investment banking giant through the 2008 financial crisis and its aftermath. His career exemplifies a remarkable rise from humble beginnings to the pinnacle of global finance.

Born in the Bronx and raised in Brooklyn's public housing projects, Blankfein worked his way through Harvard College and Harvard Law School. After briefly practicing law, he joined commodities trading firm J. Aron & Company in 1982, which was soon acquired by Goldman Sachs.

Blankfein's ascent at Goldman was steady and impressive. He rose through the fixed income, currency, and commodities division, becoming its co-head in 1994. By 2004, he was named President and COO under then-CEO Henry Paulson. When Paulson left to become U.S. Treasury Secretary in 2006, Blankfein succeeded him as Chairman and CEO.

His leadership during the financial crisis proved pivotal. While other Wall Street institutions collapsed, Blankfein secured a $10 billion investment from Warren Buffett and transformed Goldman into a bank holding company, helping stabilize the firm during extreme market volatility.

Despite successfully navigating the crisis, Blankfein faced significant criticism when Goldman paid large bonuses shortly after receiving government assistance. Under his tenure, the firm also paid a record $550 million SEC settlement regarding mortgage securities.

After stepping down in 2018, Blankfein has remained an influential voice in financial circles. His legacy includes Goldman's recovery and transformation from a private partnership into a more transparent public company, though debates continue about his role during one of modern finance's most tumultuous periods.

Salary

Lloyd Blankfein is one of the highest-paid executives on Wall Street. He regularly earns over $50 million per year in salary and bonuses alone. He also owns a significant amount of Goldman equity.

When he stepped down as CEO, Blankfein received an $85 million exit package.

His massive salaries are an additional source of controversy in the media and among the public. In 2006, he was paid a base salary of $600,000, although the total amount blossomed to almost $54.5 million with additional bonuses. This made him the highest-paid executive on Wall Street. However, these would prove to be his highest-earning years. After the financial crisis, Lloyd personally advocated for different compensation standards in the financial industry, and he led by example.

Early Life

Lloyd Craig Blankfein was born on September 20, 1954, in The Bronx, New York City. Raised in Brooklyn by working-class parents, at one point living in the projects, Blankfein graduated valedictorian from high school in the early '70s. He then attended Harvard College and earned an A.B. in History. Lloyd moved on to Harvard Law School and received a J.D. degree by the late '70s. Immediately after graduating, he worked for several law firms. However, he quickly gravitated towards the commodities industry and worked as a precious metals salesman in London. This firm was eventually acquired by Goldman Sachs.

Career

When this precious metals firm was acquired by Goldman Sachs, Blankfein started working for the company. In the 1990s, Lloyd was given leadership over the company's currency and commodities division amidst a changing leadership structure at Goldman. Henry Paulson was the new leader of the company, and he mentored Lloyd to become his successor. Despite the fact that he wasn't the highest-ranking executive at the company, it was assumed that he would take over after Paulson stepped down.

In 2004, Blankfein became president and COO. This position would last just two years before he was promoted once again to chairman and CEO. During his time as COO, he oversaw the commodities boom during the 2000s. Paulson stepped down after he was chosen by George W. Bush to serve as the US Secretary of the Treasury.

Almost immediately after Blankfein became CEO, he was faced with overcoming the 2007-08 financial crisis. Although Goldman Sachs was heavily involved with the practice of subprime mortgages that led to the crisis, Lloyd was able to survive a period that saw the Lehman Brothers and many other high-profile investment banks completely collapse. Goldman was bailed out by the government, and Blankfein used low interest rates to destroy his competition. Goldman Sachs subsequently became the second-largest investment bank in the United States.

Some controversy arose after Blankfein testified before the Financial Crisis Inquiry Commission in 2010. He claimed that even though he was selling financial products that Goldman Sachs was actively betting against, he had no moral or legal obligation to inform his clients of this fact. Eventually, the controversy melted away—much in the same way it had for many high-profile bankers who were accused of causing the financial crisis.

NICHOLAS KAMM/AFP/Getty Images

Politics

Blankfein and Goldman Sachs employees have been major contributors to Democratic candidates such as Hillary Clinton and Barack Obama. With almost a million dollars in contributions from Goldman Sachs employees and Blankfein, their company helped raise more money than any other entity during the 2008 campaign for Obama.

Real Estate

In 2012, Lloyd acquired a 7.5-acre estate in Bridgehampton. The estate set Blankfein back $35.5 million. The house features 8,000 square feet of living space. Outside, there is a pool and a tennis court.

In 2016, it was reported that Lloyd had finally sold his home in the Hamptons after first listing it in 2007 for $14 million. Content to wait almost ten years, Blankfein was able to sell the residence for a final selling price of around $13 million. At one point in 2015, the home was listed for a peak amount of $17 million. Lloyd initially purchased the property in 1995 before commissioning a well-known architect to complete the mansion. Construction was completed in 2001, and the residence features seven bedrooms, a heated pool, and tennis courts.

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