Goldman Sachs Group (NYSE: GS) said that its board of directors has rejected a demand from shareholders to investigate the investment bank’s “excessive compensation” packages and to attempt to recoup some of the awards given to executives.
The company reported in a new filing with the SEC that it had received numerous letters from shareholders asking for the company to revamp the way that the firm provides compensation to its employees. According to the filing, Goldman Sachs’ board “rejected the demands.”
The company said that some shareholders have filed lawsuits against the company during the month of December saying that the board of directors has “breached its fiduciary duties” by overcompensating the company’s executive team. The complaint filed hopes to seek restitution for some of the compensation that was paid out and order the company to reform its compensation process.
A number of financial companies that have high compensation levels have come under attack by congressional politicians, the Obama administration and the American public. The Obama administration went as far as limiting the compensation of top executives at certain companies that received “extraordinary assistance” from the government. Goldman Sachs was not included in that group.
Goldman Sachs said that it will pay its employees based on their individual performance, the firm’s overall profit levels and the current economic environment. In 2009, Goldman Sachs made the smallest payout to its employees to revenue in its history as a public company. The firm set aside $16.9 billion for pay and benefits for 2009 and the each employee made an average of more than $500,000.
