Proxy Advisers Challenge Goldman Sachs' Executive Compensation

Institutional Shareholder Services and Glass Lewis, two major proxy advisory firms, have opposed Goldman Sachs' decision to award significant stock compensation to CEO David Solomon and COO John Waldron. These advisories argue that the awards lack rigorous performance criteria and could be considered excessive.

Institutional Shareholder Services (ISS) has advised Goldman Sachs investors to reject the board's decision to grant substantial stock awards to the bank's top executives. This marks the second notable opposition from a proxy advisory firm over the controversial stock compensation.

The $160 million stock awards, revealed in January, were aimed at retaining CEO David Solomon and COO John Waldron in their roles, ensuring stability. Despite potentially convincing some shareholders, ISS expressed concerns over the lack of "rigorous, pre-set performance-vesting criteria" and the significant magnitude of these awards.

This critique underscores a recurring issue on Wall Street: the delicate balance between the fierce competition for high-level talent and widespread apprehension over excessive executive compensation. Goldman Sachs had previously stated that the awards were designed to retain leadership amidst growing talent competition.

(With inputs from agencies.)