Glass Lewis criticises Goldman’s ‘egregious’ executive bonuses

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Goldman Sachs of CEO David Solomon and president John and Daron are worth $ 80 million each “raising big concerns” and must be rejected by the bank’s shareholders. Glass Lewis consulting company recommended.

In a report published late on Friday, Al -Wakil Adviser said that the duo awards, which the bank announced in January, “increases its structure, with the deviations of grants from the historical use of the company’s performance -based stock awards.”

The company said that the rewards will be fully paid in the shares and are not related to the performance conditions.

Glass Lewis said that the “media headlines” depict “a high level of overfishing” in the bank, as the shareholders often received the “language of the boiler” about the need for wages.

She said in the report: “The absence of any disclosure surrounds the elements of such a large prize is terrible, and on this basis alone, it will guarantee a vote against this proposal this year.”

Goldman gave five -year residences to ensure the bank’s senior executives remain. The Wall Street Award has strengthened the popular view of Wall Street as the most likely successor in Suleiman.

The rewards are separate from the annual compensation for Solomon and Waldron, which reached the total last year of $ 39 million and $ 38 million, respectively. They also decreased the recent awards paid to the President of Jpmorgan and Morgan Stanley.

Inside Goldman, there were concerns for weeks that investors reject the so -called wage on the annual general meeting of the Investment Bank on April 23 in Dallas, according to people familiar with the matter.

“The competition for our talent is fierce. The Board of Directors has taken a measure to maintain the current leadership team, to maintain the momentum of our company and maintain a strong successive plan. A 100 % grant is completely equal to creating the value of shareholders in the long run.”

Consultative vote, which was adopted as part of Dodd-Frank’s financial regulations, is not binding. But if the shareholders vote not, it will represent a general reprimand for the bank.

In American banks, it is rare for investors to vote against compensation plans; In recent years, JPMorgan Chase only has just faced such a rebellion. The shareholders felt frustrated from a special prize that is expected to be worth about $ 50 million to CEO Jimmy Damon in 2022. JPMorgan later said it will not give the Dimon Private Prizes in the future.

In Goldman Sachs, shareholders’ support for executive payment prizes fell to 86 percent in 2024, from 94 percent in the previous year.

Glass Lewis also warned the shareholders of the new interest payment plan for executives. The company said that the complexity of the plan makes it difficult for the shareholders to assess the wage arrangements before paying the rewards.