Incoming U.S. Treasury Secretary Henry Paulson was awarded an $18.7 million cash bonus for six months of work as Goldman Sachs Group Inc.'s chief executive, the investment bank said Monday.

In its quarterly report, Goldman said the compensation committee of its board of directors on June 29 approved the payment in recognition of Paulson's "leadership" in the six months ended May 31.

The committee also approved the acceleration of the distribution of Paulson's restricted stock units, which vested upon his resignation to take the Treasury post. In addition, it approved Goldman's purchase of investments made by Paulson and his wife in private investment funds managed by the company.

In its fiscal first half, Goldman said net income roughly doubled from a year earlier to $4.79 billion, or $9.86 per share, helped by soaring trading revenue and increased fees from underwriting and merger advising.

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The U.S. Senate last Wednesday confirmed Paulson for the Treasury post, replacing John Snow. No date has been set for Paulson's swearing in. Deputy Secretary Robert Kimmitt is serving as acting Treasury secretary.

Paulson, 60, has said he would sell his Goldman stock upon being confirmed as Treasury secretary.

Goldman last Thursday filed with regulators for a sale of 3.23 million common shares held by Paulson, worth $486 million based on Friday's closing price.

Paulson owns the equivalent of 1.02 percent of Goldman's common stock, including shares attributable to his restricted stock holdings and stock options, the filing shows.

Paulson's total wealth is estimated at about $700 million.

Goldman awarded Paulson $38.8 million in compensation for its 2005 fiscal year, mostly in restricted stock. Paulson was not paid a bonus, another regulatory filing shows.

In morning trading, Goldman shares rose $1.41 to $151.84 on the New York Stock Exchange.

Copyright Reuters 2006.

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