, Columnist
Goldman Sachs Trades at a Discount. Here’s Why.
The firm’s annual 10-K filing reminds us why investors are wary of investment banks’ shares
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Anyone wondering why investment banks trade at a perennial discount to the wider stock market need only glance at Goldman Sachs Group Inc.’s annual 10-K filing, which dropped Friday.
First, there’s the pay. Chairman and Chief Executive Officer David Solomon’s compensation had already been disclosed: His earnings rose 24% to $31 million in a year when net profit fell 24%. The board’s compensation committee, perhaps feeling defensive, highlighted seven factors in support of their decision, including Solomon’s “decisive leadership in recognizing the need to clarify and simplify the firm’s forward strategy.”