Pension Fund Sues Goldman over C-Suite Bonuses
December 14, 2009 (PLANSPONSOR.com) – A union pension fund has sued Goldman Sachs, alleging its 2009 bonus payouts are based on taxpayer bailout money the financial services firm received and not the executives’ performance.
The Grant & Eisenhofer law firm, which represents the Roseville, Michigan-based Security Police and Fire Professionals of America Retirement Fund, said in a news release that the suit filed in New York Supreme Court accuses Goldman’s board of directors of breaching their fiduciary duties by failing to administer the company’s compensation plans in the best interests of the company and its shareholders. The suit alleged the total value of the compensation plan has been estimated at $22 billion.
The news release said Goldman accepted a $10-billion government loan and in the fall of 2008, the Federal Deposit Insurance Company enabled Goldman to generate $29 billion in cash by issuing FDIC insured debts through the Temporary Liquidity Guarantee Program.