Goldman board rejects shareholder demands on pay

NEW YORK Mon Mar 1, 2010 10:27am EST

Flags fly outside of the Goldman Sachs headquarters building in the financial district of New York January 21, 2010. REUTERS/Jessica Rinaldi

Flags fly outside of the Goldman Sachs headquarters building in the financial district of New York January 21, 2010.

Credit: Reuters/Jessica Rinaldi

NEW YORK (Reuters) - Goldman Sachs Group Inc's (GS.N) board has rejected demands from shareholders that the firm investigate recent compensation awards, recoup excessive compensation and reform pay practices.

Wall Street's dominant bank, criticized for paying billions of dollars in bonuses soon after the taxpayer bailout of the banking industry, reported the board's decision in a regulatory filing on Monday.

Goldman reported the shareholder demands last year and said at the time that its board was considering them. The firm did not name the shareholders who made the demands.

Goldman could not be immediately reached for comment.

Goldman reported a record profit in 2009 and was on pace to pay more than $20 billion in compensation heading into the fourth quarter. But facing public ire, it capped compensation expenses at $16.2 billion for the year.

The firm also paid its top 30 executives all-stock bonuses rather than cash.

Even though Goldman outperformed its biggest rivals in 2009, Chief Executive Lloyd Blankfein received a stock bonus valued at $8.9 million, roughly half of what JPMorgan Chase & Co (JPM.N) chief Jamie Dimon received.

(Reporting by Steve Eder; editing by John Wallace)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see
Comments (10)
Kina wrote:
Goldman Sachs board should be in prison for Treason against the planet and all their personal wealth confiscated by the Govt.

These guys are representative of all the lowest traits of mankind.

Mar 01, 2010 8:22am EST  --  Report as abuse
ctrebla wrote:
No wonder USA is going down the tubes. There are so many who don’t have the basics to live a happy life and these crooks and thieves think they deserve millions. The best of this country is behind us. Fraud across the board and they get away with it.

Mar 01, 2010 8:38am EST  --  Report as abuse
eco4matic wrote:
governments biggest mistake was to bail out these fraudulent corporations. they should have been left for bankruptcy or taken over by the government. what i don’t understand is how can the government take over controlling rights of GM but not of these financial companies who have been given much more funds………something isn’t right.

Mar 01, 2010 10:20am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.