Goldman Sachs CEO Blankfein calls for new rules on pay

— -- Blankfein, who has been at the top echelon of executive compensation in recent years, getting in excess of $100 million in total in the last three years, said in a speech to the Council of Institutional Investors that Wall Street should apply "basic standards" to its compensation policies.

"Individual performance must not be viewed in isolation ... without taking into strong consideration the performance of the business unit and the overall firm," Blankfein said, addressing recent criticism on large bonuses paid out to individuals at Merrill Lynch and American International Group even though the firms posted massive losses and took billions in federal bailout money.

In recent weeks, public anger at highly compensated Wall Street executives reached fever pitch, especially after it was revealed that AIG paid out $165 million in bonuses to employees at the financial services unit that caused the bulk of its losses, leading to a $180 billion government bailout.

Protesters carrying a sign saying "We want our $$$$ back," and shouting anti-bailout slogans stormed the stage where Blankfein was speaking, according to the Associated Press. Blankfein said he understands the public's anger, and stated that he and his top executives didn't take bonuses this year. Goldman received $10 billion from the U.S. government in October as part of an effort to stabilize financial companies.

Blankfein laid out a few specific compensation guidelines, saying that employees should be paid an annual salary plus deferred compensation, based on performance. He said senior employees should have most of the compensation in deferred equity, and executive officers should be required to retain the bulk of the equity they receive until they retire.

Blankfein's call raised skepticism among compensation experts.

"It's easy to call the bluff now, and be politically correct," says David DeBoskey, assistant professor and executive compensation expert at San Diego State University. DeBoskey says Blankfein's statement is like "putting up a smoke screen," because as CEO, "he had ample opportunities to revamp compensation if he was serious about it."