Eywaterkracht of $ 80 million bonuses offered to two top brass at Investment Bank Goldman Sachs are 'excessive', the advisers of the shareholders have warned.
Investors are encouraged to reject the proposed payouts for CEO David Solomon and Chief Operating Officer and President John Waldron during an annual meeting.
The enormous amounts for each of the managers are presented as retention bonuses in exchange before they remain five years old. In an unusual movement, the proposed amount of boss was the same for every boss.
The incentives were based on January -shares, which means that they could rise even further, Bloomberg reports.
But institutional shareholders' services accused the Goldman Sachs Board of 'Bad practice' when it wrote to investors on Monday.
The advisory service claimed the bonuses, “there are rigorous, pre-set performance criteria, which in particular relate to off-cycle prices with such large values.”
It added that although there was, “reason for these subsidies in the context of strong business performance and competitive climate,” the new bonuses were added while another stimulation program from 2021 is still being processed.
“It is generally considered a bad practice to give overlapping off-cycle prices,” is the memorandum.
Goldman Sachs advised CEO David Solomon and President John Waldron received $ 80 million in retention bonuses, but the proposal has been criticized by advisory services
Solomon is co -owner of Baker's Bay Golf & Ocean Club Resort in the Bahamas
It comes after Glass Lewis, another Proxy advisory service, also recommended against the incentives, which they burned 'excessively'.
Goldman Sachs insists that the major payouts are needed to retain top talent because of 'fierce' competition.
'Competition for our talent is fierce. The board has taken action to keep our current leadership team, to maintain the momentum of our company and to maintain a strong follow -up plan, “a spokeswoman told DailyMail.com.
“A 100% shares -based subsidy is fully tailored to making shareholder value in the long term.”
According to the steward of Solomon, the banks of the bank have risen by more than 140 percent.
The 63-year-old followed Lloyd Blankfein to become CEO in 2018. He became chairman of the bank the following year.
Solomon enjoys an enviable lifestyle that is spent through private jet between luxury properties in New York and the Bahamas.
In 2017, his extensive Colorado estate was sold for $ 36 million, while his palace -like apartment in the west of Central Park was mentioned at $ 24 million the previous year.
Solomon is a partial owner of the Discovery Land Company, which developed the Ritzy Baker's Bay Resort in the Bahamas, where he also owns, reports the New York Times.
Critics noticed the recommended bonus for Waldron as 'excessive'
Goldman Sachs says that the bonuses are needed to keep top talent in a competitive market
He was also previously moonlight as a DJ, who acted under the name DJ-Sol, with his yields donated to a charity.
Waldron took his role in 2018 after earlier as a co-head of the banking system.
He was mentioned as the owner of a beautiful $ 9 million mansion in Edgartown, Massachusetts that was sold in 2020.
Earlier this year, the employees of the bank remained furious about the size of their bonuses.
The employees balanced after CEO David Solomon had taken a payout of $ 39 million before 2024, because the company earned its highest quarterly profit in three years.
According to the New York Post, the staff of the investment bank company claimed that their end -of -year bonuses were 'nowhere close' compared to the past years.
Employees claimed that they had previously received 50 percent of their basic salary in bonuses, but they believe that their compensation from 2024 was cut so that the bank could increase its quarterly and complete income.
Dailymail.com has approached Goldman Sachs for comment.
