Goldman Sachs is under scrutiny for awarding massive $80 million retention bonuses to CEO David Solomon (pictured above) and COO John Waldron. Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have criticized these payouts, citing a lack of performance criteria and misalignment with company performance. ISS labeled the bonuses as “poor practice,” urging shareholders to vote against them, while Glass Lewis highlighted Goldman’s “continued inability to align pay with performance.” According to the New York Post:
There was also further controversy at Goldman on Friday when Business Insider reported on how the bank was planning to hire a corporate aviation associate to organize executive private jet travel.
The post will see the lucky candidate rake in up to $160,000 a year for managing the schedule of the bank’s two Gulfstream jets, which The Post has dubbed Air Force Sol.
“Goldman Sachs appreciates the help recruiting top talent for this job, in yet another New York Post article about our corporate aviation,” the Goldman Sachs spokesperson ranted.
“The fact that Goldman needs a full-time employee to manage its fleet of private aircraft is another testament to the expansive reach of Goldman’s executives,” said Luke Perlot of the National Legal and Policy Center, a right-leaning corporate activist group. “We still think the private aircraft are a waste of shareholder resources.”
NLPC has filed a shareholder proposal at Goldman Sachs asking the board to adopt a more rigorous approach to performance-based pay, calling for scrutiny regarding incentives that are linked to diversity, equity and inclusion. This latest bonus debacle only reinforces the need for stronger accountability. Read our full proposal here. Watch a video on NLPC’s previous work criticizing David Solomon below.
The @GoldmanSachs annual meeting is Wednesday — will @BlackRock @Vanguard_Group @StateStreetGA and other #investors vote for Item 4 as recommended by @issgovernance and @GlassLewis ?? #GoldmanSachs #investing #WallStreet #shareholders … https://t.co/EmzQpfvk3v pic.twitter.com/nhtgAab988
— NLPC (@NLPC) April 22, 2024
