Goldman’s Special CEO Bonus Is Rebuked by Shareholder Adviser

  • Adviser advocates rejecting $50 million incentive for CEO, COO
  • Stock worst among peers after rising costs, banking slowdown

David Solomon

Photographer: Hollie Adams/Bloomberg
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A prominent adviser to shareholders is taking umbrage at the special bonus grants to Goldman Sachs Group Inc.’s chief executive officer and a top deputy -- a rebuke that comes at an awkward time for the bank as its stock turns in the worst showing among peers this year.

Glass Lewis, a major voice on annual shareholder votes, is recommending Goldman investors vote against a pay package that puts CEO David Solomon and John Waldron, the bank’s president, in line for about $50 million in one-time bonuses. The adviser questioned whether the board’s rationale for the grants -- guaranteeing leadership continuity and talent retention -- warranted such large payouts.