Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein said Wednesday that multiyear guaranteed contracts for bankers should be banned and that the "clawback" of pay should be permitted to discourage excessive risk taking.

The portion of pay in stock should rise "significantly" as compensation increases, senior bankers should get most of their pay in deferred equity and top executives should be required to retain the bulk of the equity until they retire, Blankfein said at a banking conference in Frankfurt Wednesday.

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