Investment Banking firm, Goldman Sachs is being sued by a United States pension fund over what’s being referred to as the ‘extravagant compensation bonanza.’ The bank, that was bailed out by the Federal government only a little more than a year ago has been garnering considerable criticism in recent months for their flagrant spending.
Things came to a head in November when news of the bank’s $22 billion Christmas Bonus pool broke, resulting in a public outcry. Still, little way done in the way of legal action until now.
The Security Police and Fire Professionals of America Retirement Fund, an investor in the bank, is accusing Goldman’s executives of violating their fiduciary duties to shareholders for the questionable impact their excessive compensation plan has on shareholder.
Chairman and CEO Lloyd Blankfein and Chief Operating Officer Gary Cohn in addition to several members on their board of directors are at the center of the lawsuit. The Retirement Fund is determined to recoup the billions of dollars distributed in bonuses.
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