Glass Lewis recommends vote against Goldman Sachs' one-off executive bonuses

[BENGALURU] Proxy advisory firm Glass Lewis urged shareholders of Goldman Sachs Group Inc to vote against special bonuses the Wall Street bank has proposed for 2 top executives.

The executive pay proposal will be put to an advisory vote at Goldman's annual general meeting scheduled on Apr 28.

"We are concerned about special, one-off grants to the CEO and COO considering their quantum and structural issues," Glass Lewis said in a note to Goldman's investors, seen by Reuters on Friday (Apr 8).

Goldman declined to respond to Reuters request for comment.

The opposition from Glass Lewis comes against the backdrop of a talent war on Wall Street, with rising inflation and a tight labor market forcing big U.S. banks to pay more to woo and retain employees.

In a regulatory filing October last year, Goldman said it would grant performance-based stock worth US$30 million to Chief Executive Officer David Solomon, and US$20 million in stock to John Waldron, the bank's president and chief operating officer.

The awards would be paid out in October 2026.

The bank later expanded the awards in January to include other members of the top management.

Goldman's stock has dived nearly 16 per cent so far this year, as financial firms continue to grapple with the economic fallout of the Ukraine crisis and the Federal Reserve's move to tighten monetary policy. REUTERS