Goldman Sachs said it could withhold some pay from top executives as a result of an ongoing criminal probe of a Malaysian investment fund.
The Wall Street firm said in a regulatory filing Friday its board of directors had approved a forfeiture provision that gave it “the flexibility to reduce the size of the award prior to payment and/or forfeit the underlying transfer-restricted shares” of executive pay granted for 2018.
David Solomon, who took over as CEO and chairman, received pay of $23 million for last year, including a $1.9 million salary, $21 million bonus and restricted shares of $15.4 million, according to the regulatory filing.
The forfeitures could apply to any of the firm’s top five executive officers as of the end of 2018.
Goldman said it would withhold or pull back pay as much as five years from now “if it is later determined that the results of the 1MDB proceedings would have impacted the Committee’s 2018 year-end compensation decisions for any of these individuals.”
In addition, the filing said Goldman has decided to put off calculating the value of longer-term pay granted Blankfein and other former executives in 2011 “until more information is available.”