Goldman Sachs sued by big pension fund over pay

[babylonsister]

Goldman Sachs sued by big pension fund over pay
NEW YORK
Mon Mar 8, 2010 5:59pm EST



NEW YORK (Reuters) - Goldman Sachs Group Inc (GS.N) was sued on Monday by a large union pension fund that accused the Wall Street investment bank of overpaying its executives.

The International Brotherhood of Electric Workers fund filed the lawsuit in Delaware Chancery Court, seeking to recover money for the company on behalf of other shareholders.

It seeks to stop Goldman from allocating roughly 47 percent of 2009 net revenue as compensation, saying such allocations "vastly overcompensate management and constitute corporate waste."

The lawsuit also wants Chief Executive Lloyd Blankfein and others in management, rather than shareholders, to be responsible for charitable contributions that Goldman is making as a an apology for its activities.

Goldman has been at the center of a public debate over how much banks should pay out in the wake of the 2008 financial crisis, after taking billions of dollars of federal bailout money.

more...

http://www.reuters.com/article/idUSTRE62763320100308

[whistler162]

1. If shareholders can't vote a change of policy then this is

a good alternative. Better than trying to legislate the pay of manangement.

[drm604]

2. This strikes me as the course of action most likely to be effective.

This makes me wonder if holders of 401k accounts would have any standing in these types of actions.