Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Norway wealth fund backs proposal to split Goldman CEO, chair roles

Published 19/04/2024, 08:12
© Reuters. FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo
GS
-

By Greta Rosen Fondahn

STOCKHOLM (Reuters) -Norway's $1.6 trillion sovereign wealth fund, one of the world's largest investors, will support a resolution calling for Goldman Sachs (NYSE:GS) to split the roles of CEO and board chair, it said on Friday.

Proxy advisors Institutional Shareholder Services (ISS) and Glass Lewis have recommended that investors back a shareholder resolution urging the bank to split the two positions, currently held by David Solomon, at Goldman's annual meeting on April 24.

The independence of banks' leadership has been a hot issue since the 2008 global financial crisis.

Norges Bank Investment Management (NBIM), which operates the Norwegian fund, is the 12th biggest investor in Goldman Sachs according to LSEG data, with a 0.84% stake in the Wall Street bank at the end of 2023, valued at the time at $1.09 billion.

"The board should exercise objective judgement on corporate affairs and be able to make decisions independently of management," NBIM said in a statement explaining its vote rationale.

Goldman Sachs has recommended investors reject the proposal to split the two roles.

"This issue has repeatedly come up for vote at firms across our industry," a Goldman Sachs spokesperson said on Friday.

"Our Governance Committee needs the flexibility to determine the best structure for our firm," they added. "They made clear that a strong lead independent director, alongside the Chairman CEO role, is the most effective at this time."

© Reuters. File photo: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File photo

A similar proposal filed last year drew 16% support, including from NBIM.

NBIM also said it would vote in favour of Goldman's pay package for top executives.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.