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The Goldman Sachs Group's board of directors is taking steps to reduce the compensation of its key executives in 2018, according to the results of investigations into the role of investment bank in the rampage of a Malaysian public investment fund of several billion dollars.
In a report filed Friday night at the Securities and Exchange Commission, Goldman said the board could downsize the size of the stock-based awards granted in 2018 to its top executives if it determined that the results of the investigation into the scandal of the Malaysian funds would have been at the origin of Goldman's compensation. committee responsible for reducing the share allocations of its key executives.
Such a scenario could affect David Solomon, CEO, and Lloyd Blankfein, President and former CEO, who will receive respectively $ 15.4 million and $ 14.3 million of restricted shares as part of their compensation for 2018 .
The scandal centers on the 1Malaysia Development Berhad Fund, or 1MDB, created for economic development by former Malaysian Prime Minister Najib Razak when he took office in 2009. He has instead accumulated billions of debt and is currently doing so. the subject of a survey in the United States. other countries. The scandal helped precipitate Najib's ouster during a historic election defeat last May.
Last month, Solomon apologized to Malaysians for the role played by former Goldman banker Tim Leissner in organizing the sale of bonds for 1MDB. The CEO said Goldman had done due diligence but was misled by Leissner and former Malaysian government officials.
The new government in Malaysia has filed criminal charges against Goldman Sachs, Leissner and another former leader, Roger Ng Chong Hwa.
The Attorney General of Malaysia, Tommy Thomas, said that $ 2.7 billion was stolen from three bond sales organized by Goldman subsidiaries and that the investment bank received $ 600 million in fees , several times the norms of the sector, for having organized the transactions.
The government is demanding that Goldman be fined billions of dollars for violating securities laws by making false and misleading statements to investors.
Goldman Sachs has denied any wrongdoing in response to the criminal charges against Malaysia.
The shares of the investment bank New York yielded 0.7% to 196.54 dollars Friday. The stock is up 17.7% this year.
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