Goldman Sachs and Financial institution of America shareholders voted in opposition to proposals to divide the CEO and chairman roles at each banks on Wednesday, bucking pressure from influential proxy advisers to bolster company governance.
Proxy advisers Institutional Shareholder Providers (ISS) and Glass Lewis had urged shareholders to assist the strikes and strip Goldman CEO David Solomon and BofA CEO Brian Moynihan of their chairman roles.
Norway’s $1.6 trillion sovereign wealth fund, one of many world’s largest traders, had additionally indicated assist for the plan.
At Goldman’s annual shareholder assembly, the proposal by the conservative-leaning Nationwide Authorized and Coverage Heart (NPLC) garnered 33% of shareholder votes, in response to a preliminary tally, in contrast with 16% final 12 months.
Solomon’s “poor choice making” led to substantial losses in its retail division, Luke Perlot, affiliate director of the NLPC’s company integrity undertaking, instructed traders as he offered the proposal.
After the vote failed, Perlot stated the CEO’s misjudgments “might have been averted had there been a severe counterweight to his energy.”
He added: “we’re happy that voting in assist doubled from final 12 months, we’re dissatisfied that these clear examples of excesses didn’t persuade a majority to assist our proposal.”
A Goldman Sachs spokesperson referred to the corporate’s earlier feedback on the matter. Its governance committee has maintained that it considers a robust lead unbiased director, alongside the chairman-CEO function, as simplest right now.
“We took decisive motion to slim our strategic focus and play to our core strengths,” Solomon instructed the assembly in his opening remarks. “We’re delivering on this technique and placing the agency in a stronger place.”
A related transfer at Financial institution of America to separate the CEO and chairman roles additionally failed after receiving 31% of shareholder votes, in contrast with 26% final 12 months.
At each banks, traders authorized all administration proposals, together with these on government compensation, whereas rejecting all shareholder proposals.
