A prominent proxy-advisory firm is telling shareholders to vote against Goldman Sachs Group Inc.’s executive-pay plan after the Wall Street giant’s top leaders were given lofty raises in a year when profits slumped.
Glass, Lewis & Co., a major voice on annual shareholder votes, cited the “significant disconnect between pay and performance” at New York-based Goldman in making its recommendation.
The bank had boosted Chief Executive Officer David Solomon’s compensation to $31 million, marking a 24% jump for a year when Goldman’s earnings plunged by a similar amount.
“This does not instill a sense of optimism that the ongoing disconnect will see improvement in the near term,” Glass Lewis said in its recommendation on the non-binding vote. “Given these factors, we believe that shareholders may reasonably withhold support from this proposal at this time.”
Other executive officers also recorded an increase in their 2023 compensation. Goldman Chief Operating Officer John Waldron’s pay package jumped 28% to $30 million.
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Glass Lewis said that Goldman shareholders should be wary of the continued disconnect between pay and performance, with the company receiving its second consecutive “F” grade.