Glass Lewis criticises Goldman’s ‘egregious’ executive bonuses

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Chief Executive David Solomon and President John Waldron should “raise significant anxiety” as $ 80 million in the Goldman Schatch Bonus and rejected by bank shareholders, advisor Farm Glass Lewis recommended.

In a report published on Friday, the proxy adviser said the two prizes Which bank announced in January“Their structure intensified, the grants deviated from the Historical Tihasic use of the company’s performance-based equity award”.

The bonuses will be fully paid in the stock and not bound to the performance of the performance, the firm said.

Glass Lewis said, “Media titles” depicted a “high level poaching” experienced in the bank, shareholders received mostly “boilerplate languages” about the salary requirements, Glass Lewis said.

The report said, “The absence of any manifestation surrounding these elements of such a reward is extremely deadly and on this basis will guarantee a vote against the proposal this year,” it said.

Goldman has granted a five -year retression bonus to ensure that their top two executive banks are in the bank. The reward for Waldron has cement the popular aspect of Wall Street observers that he is probably the most likely of Solomon Final successorThe

Bonuses are different from the annual compensation of Solomon and Waldron, which last year was $ 39 million and $ 38 million respectively. They also donated the recent awards of JP Morgan and Morgan Stanley, the chief executives of the rivals.

Inside the Goldman, there have been concerns for several weeks that investors will reject the so -called statement at the annual general meeting of the investment bank on April 27, according to people.

Goldman, whose top investors include Vanguard, Blackrock and State Street, in a statement: “Competition for our talent is fatal. The board took steps to maintain our current leadership team, maintain the speed of our farm and maintain a strong inheritance plan. A 100 percent stock -based grant is fully combined with long -term shareholder standards.”

The Advisory vote adopted as part of the Dod-Frank financial control reform is nonbinding. But if the shareholders vote a vote, it will present a public crisis for the bank.

In US banks, it is rare to vote against investors’ compensation plans; In recent years, there are only JP Morgan Chase In the face of such rebellionThe The shareholders were disappointed with a special award worth about $ 50 million for CEO Jamie Dimon in 2022. Zepimorgan later said that it would be Not Dimon special rewards in the future.

Goldman Shash, Shareholder’s Executive Pay Awarded support fell to 86 percent in 2024, which was 94 percent the previous year.

Glass Lewis also warned of shareholders about the newly carried interest pay plans for the executives. The complexity of the plan makes the shareholders more difficult to evaluate before paying the bonus of shareholders, the firm said.