Goldman offered heftier bonus payouts to investment bankers and traders as the bank shattered revenue and earnings records last year. The bank then added millions of dollars to pay packages with one-time stock grants in addition to annual bonuses for its exclusive partnership class.
The largesse escalated further, with members of Goldman’s management committee, its top decision making body, offered an even more lucrative perk. But the deepening effort to cajole executives to stick around has come at a cost: Goldman reported record-high annual expenses fueled by soaring compensation and benefits costs last year.
The recommendation to vote down the pay proposal comes ahead of the bank’s annual meeting on April 28, where it’s seeking shareholder approval of a non-binding vote on executive pay. It also comes ahead of bank first-quarter earnings which begin next week.
--With assistance from David Scheer.
This article was provided by Bloomberg News.