WHO: Goldman Sachs Group Inc.
WHAT: Large investors holding tens of millions of Goldman Sachs shares are objecting to the Wall Street firm paying its biggest-ever employee bonuses — about $717,000 apiece. The irate stockholders are upset because the 2009 earnings per share are expected to be 22 percent lower than in 2007 and roughly equal to the 2006 earnings — despite record net income as the markets rebound.
WHY: Goldman’s stock-earnings decline was caused by issuing more than 100 million shares in the past year to beef up its capital position. Shareholders also dispute a financial statement change that added temporary workers and consultants to the company’s total head count, making it look as if Goldman employees earn less than they actually do.
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