Proxy Advisers Advise Rejecting Goldman Sachs Executive Pay Awards

Proxy advisory firms Institutional Shareholder Services and Glass Lewis have both recommended that Goldman Sachs investors reject the board's decision to grant one-time stock awards to CEO David Solomon and COO John Waldron. The critiques focus on the lack of performance-based criteria and concerns over excessive compensation.

Institutional Shareholder Services (ISS) has advised Goldman Sachs shareholders to vote against the board's decision to award significant stock compensation to its CEO and COO. The move comes as a second high-profile proxy adviser joins the criticism.

The $160 million stock awards, announced in January for CEO David Solomon and COO John Waldron, aim to retain top executives amid fierce recruitment battles. However, ISS criticized the lack of performance-based criteria and raised concerns about the scale and structure of the awards.

Glass Lewis, another influential proxy advisory firm, has also recommended a vote against these executive pay packages. Goldman Sachs has defended the awards as vital for leadership stability and succession planning. This issue accentuates ongoing tensions in corporate governance on Wall Street.

(With inputs from agencies.)