Daily Archives: June 11, 2015

Goldman Directors Said to Grab Excessive Pay

(CN) – Goldman Sachs’ board of directors pays itself nearly twice what its peers JPMorgan Chase and Morgan Stanley pay their directors, unconscionably costing Goldman shareholders millions per year, a derivative suit claims.
Jeran Binning filed the lawsuit on behalf of The Goldman Sachs Group Tuesday against its lead director, Adebayo Ogunlesi, and 10 others in Delaware Chancery Court.
“Goldman’s Board of Directors has unfettered ability grant its members an unlimited amount of stock as part of their annual ‘compensation,'” the complaint begins. “The defendants have abused this power by paying themselves well beyond what could be considered reasonable or fair.
“In fact, over the past three years, Goldman has paid its non-executive directors on average almost $240,000 more per director than the Company’s self-selected peer group. Due to large size of Goldman’s Board, this excessive compensation has resulted in Goldman paying its non-executive directors millions of dollars more than they deserve,” the lawsuit continues.

Read on.

This consulting firm hires powerful government workers and sells their secret knowledge back to Wall Street

In the wake of the financial crisis, the banks and hedge funds of Wall Street were hit with a slew of new regulations.

If a bank or a fund broke any of the new rules, disaster could result.

Just months after Deutche Bank failed the Fed and Treasury department’s “stress test” earlier this year, both of its co-CEOs were suddenly out of a job.

At the same time, regulations can cause banks to enter and exit whole business lines just to avoid fines and other penalties.

This new reality has made the industry desperate to know what exactly the regulators were thinking when they made the rules.

A little-known consulting firm has figured out an ingenius way to capitalize on this thirst for knowledge.

It’s Promontory Financial Group. It’s one of the industry’s biggest poachers of Washington regulators.

Read on.