Goldman Sachs said it could pay millions of dollars in salary from some of its leaders because of a scandal involving Malaysia's sovereign development fund, 1MDB.
The company said in a regulatory filing on Friday that the board had approved a new provision that would allow the committee to reduce the amount of the pre-payment price, or to "lose the underlying transfer-limited shares" of executive pay given in 2018, depending on the result of a survey of Malaysia's fund.
It could eventually cost former CEO and Chairman Lloyd Blankfein, who was in the helm of the company for 1
The Malaysian government is currently seeking $ 7.5 billion in compensation from Goldman, claiming that the bank helped 1MDB raise billions of dollars, which later became the victim of corruption. The Wall Street firm faces both criminal and civil charges in the case, even though it has denied any offense. Two banks in Goldman Sachs, including Tim Leissner, have also been charged.
"It is very clear that the people of Malaysia were deceived by many people, including the highest members of the former government," says CEO David Solomon during the bank's earnings call. "Tim Leissner was a partner of our company, on his own admission, was one of those people. For Leissner's role in that scam, we regret the Malaysian people. "
CLICK HERE TO GET FOX BUSINESS APP
In 2018, Blankfein received $ 20.05 million in total compensation, according to the Securities and Exchange Commission filing, compared to $ 24 million the year before. This includes a base salary of $ 2 million and "annual variable compensation" of $ 18.5 million, of which $ 14.2 million were stocks.