Shareholders appeal rejected by Goldman Sachs

The board of directors at Goldman Sachs has rejected a number of appeals by shareholders for an investigation into pay processes and bonus schemes to be launched.

A filing by the investment bank to the Securities and Exchange Commission (SEC) showed that “several demand letters” had been
sent calling for changes to be made to the organisation’s compensation methods.

The document said that the letters demanded that “Group Inc.’s board of directors investigates compensation awards over recent years, [takes] steps to recoup alleged excessive compensation, and [adopts] certain reforms”.

“After considering the demand letters, Group Inc.’s board of directors rejected the demands,” the statement continued.

The filing also revealed that some shareholders had launched a law suit against the bank in December, claiming that the board had neglected its “fiduciary duties” when setting payment levels for 2009.

A number of government agencies have also asked the bank questions relating to the payment processes.

Goldman Sachs explained it is currently cooperating with the agency requests.

Earlier in the month, Lloyd Blankfein, chief executive officer at the bank, received $9 million worth of stock as a bonus for 2009.

By Jim Ottewill