On the floor os the New York Stock Exchange you can see the logo of Goldman Sachs. At a meeting held in New Jersey, the preliminary vote tallies of Goldman Sachs leaders was given. The nominees received the support that they needed from each of the banks eleven directors.
Two things that were voted on was the executive pay and a stock plan for employees. Both of these were approved. The stock plan was approved by 65% and the executive pay at 87% of the votes that were cast.
Lloyd Blankfein who is Chief Executive and Chairman of Goldman Sachs said that there was not a set time for when he could stop running the Wall Street bank. David Solomon company president, as well as the chief operating officer, will be taking over Lloyd Blankfein’s role at some time in the future. Blankfein who is sixty-three years old has not decided when he will stop working or if he ever will.
As for the stock plan Institutional Shareholder Services proxy advisor recommending stockholder to vote no on this plan. The proxy share a concern that the company relied way too much on stock-based compensation. , in turn, created a higher burn rate which diluted shareholders. Goldman let it be known that its burn rate is higher than any of its rivals. Its employees had far more traders and investment bankers than tellers or employees on salary.
While requesting no new shares of stock be issued it had proposed keeping the stock plan for three more years. The bank wants to do less deal-making and more deposit taking. Goldman’s was founded by Marcus Goldman in 1869. His son-in-law joined the company in 1882. Then in 1885, Ludwig Dreyfuss joined and the company then became known as Goldman Sachs & Company. It became a member of the New York Stock Exchange in 1896.
In preparation for the new tax code, Goldman Sachs rapidly gave top executives awards that neared $100 million. The company wanted to avoid tax changes that were unfavorable. The United States tax code had not been overhauled in nearly thirty years. One of the provisions of the new tax code was a cap on the corporate deduction for executives pay. There is no cap on deductions that included pay based on performances. This includes bonus pay.
The new tax code will take off around $5 billion from Goldman Sachs profit in the last quarter of 2017. This is a repatriation charge that will only happen once. While the new tax law reduces around $56 billion of the company’s earnings the last quarter of 2017. Two-thirds of this is due to the repatriation tax.
Goldman Sachs in a multinational investment bank and financial services. Its headquarter are in New York City. While its main office is in New York it has branches all over the world. It offers investment management, prime brokerage, and asset management. It is one of the largest banking companies in the world. It is a primary dealer in United States Treasury securities. Many of Goldman Sachs employees have entered into government positions.