Goldman Sachs CEO and Chairman Roles Should Be Separated, Institutional Shareholder Services Advises
ISS Calls for Independent Oversight at Goldman Sachs
Proxy adviser ISS recommended that Goldman Sachs separate the CEO and chairman roles currently held by David Solomon to benefit from more independent oversight. The recommendation comes ahead of the bank’s annual shareholder meeting on April 24.
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Consumer Business Missteps Highlight Need for Change
ISS pointed out Solomon’s challenges in the consumer realm, leading to steep losses and human capital issues at Goldman Sachs. The Wall Street giant is now scaling down its consumer business after significant financial setbacks.
Executive Departures and Compensation Concerns
Several high-profile executives have left Goldman, underscoring ISS’s cautionary support for the bank’s executive pay structure. The report highlighted that the compensation program overly relies on discretion.
Leadership Independence in Focus
The need for independent leadership at Goldman Sachs has been a critical issue post the 2008 financial crisis. With Solomon holding both CEO and chairman positions, ISS emphasized the complexity of managing the bank’s operations and board.
Lead Director Transition and Future Leadership
Goldman appointed David Viniar as the next independent lead director, succeeding Adebayo Ogunlesi. While Viniar’s role is deemed robust and independent by ISS standards, questions remain about elevating a former Goldman executive at this time.
Final Thoughts
