Goldman Sachs Shareholders Approve $80M Retention Bonuses for Top Executives

Goldman Sachs' executive compensation plan, which includes a $80 million retention bonus for each of its top executives, has received majority approval from its shareholders. This decision comes despite external criticism over the perceived excessiveness of the compensation package. The plan was approved during the firm's annual shareholder meeting held in Dallas on Wednesday, with 66% of votes in favor. The non-binding vote was a result of the "say-on-pay" mechanism, which was established post-2008 financial crisis to address public discontent over excessive executive compensation.

The compensation plan, which includes $80 million retention bonuses for CEO David Solomon and President John Waldron, has been a subject of controversy due to its high value and lack of performance-based conditions. The executives are set to receive the full bonus if they remain with the company until January 2030. goldman sachs has justified the plan, stating that it is necessary to compete with well-funded private equity firms for top talent.

Despite the controversy, the plan has received majority support from shareholders in the past. Last year, despite opposition from Glass Lewis & Co., the plan received 86% approval from shareholders. This year, the same institution opposed the plan, stating that Goldman Sachs' explanation for the $160 million total retention bonus was insufficient. However, the plan still received majority support, indicating that shareholders are generally satisfied with the firm's compensation strategy.

The approval of the compensation plan is a significant development for Goldman Sachs, as it addresses concerns over the firm's ability to retain top talent in a competitive market. The plan also reflects the firm's commitment to transparency and shareholder engagement, as it has been seeking shareholder input on executive compensation since the 2008 financial crisis. However, the controversy surrounding the plan highlights the ongoing debate over executive compensation and its relationship to company performance.

Ask Aime: What are the implications of Goldman Sachs' executive compensation plan, including the $80 million retention bonuses, for the company's shareholders and market perception?