Shareholders are being urged to vote against the pay packages of senior executives at U.S. investment bank Goldman Sachs (GS).
Two influential shareholder advisory groups are recommending that investors vote against pay packages for Goldman Sachs’ senior leaders at the bank’s annual meeting on April 23 in Dallas, Texas. Institutional Shareholder Services, or ISS, and Glass Lewis have each published reports recommending that shareholders withhold support for Goldman’s executive compensation.
The controversy has erupted over a pair of $80 million retention bonuses being paid to CEO David Solomon and John Waldron, the investment bank’s president and chief operating officer (COO). Waldron is widely considered as a contender to succeed Solomon in the CEO role at Goldman Sachs.
Big Bonuses
The $80 million bonuses are being paid in the form of restricted stock units, a form of stock compensation that employees can earn over time. The bonuses are on top of Solomon and Waldron’s annual pay, which the firm said was $39 million and $38 million, respectively, in 2024.
The outcome of the vote on management pay is being closely watched on Wall Street and elsewhere as it sends a strong signal to firms on whether shareholders approve or disapprove of their compensation packages. Boards take the votes into consideration when setting future executive pay. Glass Lewis has called the pay at Goldman Sachs “excessive.”
For its part, Goldman Sachs has said that it must pay hefty compensation as competition for talent on Wall Street is “fierce.” GS stock has risen 144% since Solomon and Waldron started in their current roles in October 2018.
Is GS Stock a Buy?
Goldman Sachs stock has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy and five Hold recommendations assigned in the last three months. The average GS price target of $648.23 implies 15.72% upside from current levels.
