REWARDS are not linked to success at top investment bank Goldman Sachs, a leading proxy advice firm has claimed, urging shareholders to vote against bosses’ pay packet at the annual general meeting (AGM) next week.
Glass Lewis argues the bank is not treating shareholders fairly, giving big payouts regardless of performance.
“Shareholders benefit when incentive awards are determined on the basis of metrics with pre-established goals and are this demonstrably linked to the performance of the company, aligning the interests of management with those of shareholders,” Glass Lewis said.
“In this case, shareholders should be seriously concerned with the company’s failure to implement a formula-based short-term incentive plan with metrics and goals.”
And it singled out chief executive and chairman Lloyd Blankfein, noting he was paid more than the average boss in his peer group, yet performed worse than average.
City A.M. Reporter