Goldman Sachs Group Inc.’s compensation plan, which almost doubled top executive Lloyd Blankfein’s pay last year to $19 million in total compensation, unfairly rewards the investment bank’s employees at shareholders’ expense, a lawyer for investors told the NY Post.
Goldman, the fifth-biggest US bank by assets, has lost $50 billion in market value since 1999, while the company has paid out billions in compensation to the firm’s 31,000 employees -- including Blankfein, its chairman and chief executive officer -- John Harnes, an attorney for investors who have sued over the pay plan, argued yesterday.
Goldman “is being run for the benefit of employees rather than shareholders,” Harness told Delaware Chancery Court Judge Sam Glasscock III. The judge heard arguments on whether shareholders’ suits seeking to recoup executive compensation should be thrown out.
In July, Goldman bosses set aside $8.44 billion for the compensation pool in the first six months of this year, according to its Web site, 9 percent less than in the same period in 2010…
Read more at http://www.nypost.com/p/news/business/goldman_pay_ripped_IajOlBVD6gqCjjxNLa721O
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