Unlock Digent Editor FREE
Roula Khalaf, editor of FT, chooses her favorite stories this weekly newsletter.
Goldman Sachs bonuses for CEO David Solomon and President John Waldron worth $ 80 million for “raise significant concerns” and should be rejected by the bank's shareholders, Glass Lewis recommended.
In a report published late on Friday, he stated that the Proxy Advisor stated that the Duo Awards, Which the bank announced in JanuaryThey were “further deteriorated by their structure, with grants leaving the historical use of prices based on performance -based performance”.
The bonuses will be paid exclusively in stock and are not associated with performance conditions, the company said.
While the “media subtitles” displayed a “high level of poaching” at the bank, shareholders usually received the “tongue of the boiler” on the need for rewards, Glass Lewis said.
“The absence of any publication surrounding these elements of such a substantial award is immense and only on this basis would guarantee a vote against this proposal this year,” she said in the report.
Goldman granted five -year retention bonuses to ensure that their two best executives stayed at the bank. Waldron's price has strengthened the popular view between Wall Street observers that is most likely Solomon's with most likely Eventual successor.
Bonuses have been separate from the annual compensation for Solomon and Waldron, which last year was $ 39 million and $ 38 million. They also covered the recent awards paid by the heads of JPMorgan and Morgan Stanley rivals.
Inside Goldman, there were concerns that investors rejected by the so -called word about the salary vote at the annual General Meeting of the Investment Bank 23. April in Dallas, according to people who are familiar with this matter.
Goldman, whose best investors include Vanguard, Blackrock and State Street, said in his statement: “The competition of our talent is hard. The Council has taken steps to maintain our current team leader to maintain the momentum of our company and maintain a strong succession plan.
Advisory vote, accepted as part of the financial regulation of Dodd-Frank, is not bound. However, if the shareholders voted, it would be a public reprimand for the bank.
In the US Banks, investors are rare vote against compensatory plans; In recent years has only jpmorgan chase In the face of such a rebellion. The shareholders were frustrated by a special award, which is assumed that in 2022 Jamie Dimon's CEO will be about $ 50 million. Jpmorgan then said that not Dimon Special Awards in the future.
At Goldman Sachs, support of shareholders for their award for their executive payments in 2024 dropped to 86 %, from 94 % in the previous year.
Glass Lewis also warned shareholders of a new plan to pay interest for managers. The complexity of the plan makes it difficult for shareholders to assess the reward agreement before the bonuses are paid, the company said.
