Goldman’s Gary Cohn Saga Thrusts Clawback Shortcomings Into Spotlight
- Directors don’t often recoup money from executives in scandals
- Seldom used, clawbacks give boards cover on accountability
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It seemed like a decisive move by Goldman Sachs Group Inc.’s board of directors: Compel a dozen executives to give back millions of dollars to hold them publicly accountable for the 1MDB corruption scandal.
But any hopes of a swift and unified act of contrition were thwarted when one of them, Gary Cohn, didn’t pay up. Weeks later, he ended the stalemate on his own terms by pledging to give his share to charity.