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Goldman Sachs threatens managers with bonus cuts due to financial scandal

New York - The investment bank Goldman Sachs is threatening its former boss Lloyd Blankfein and other top managers with cutting bonus payments worth millions. The background to the statement by the Supervisory Board on Friday is the corruption scandal surrounding the Malaysian sovereign wealth fund 1MDB, in which Goldman Sachs employees could also have played a role.

The bank's supervisory board therefore decided to reduce the bonus payments for top managers if the results of the ongoing investigations justify this.

The Malaysian sovereign wealth fund 1MDB is at the center of one of the biggest fraud scandals in financial history. Up to three billion dollars (2.6 billion euros) are said to have been embezzled by Malaysian and US judicial authorities, including by Malaysian top politicians. Goldman Sachs did important banking for the fund. In November, the US judiciary brought charges against two former Goldman Sachs employees over the scandal.

flexibility

The resolution of the supervisory board now states that - depending on the results of the investigations - there should be "flexibility in reducing bonuses" for top managers. Blankfein resigned as head of Goldman Sachs in September. The decision of the supervisory board could affect him financially, as the bank has promised him payments even after his departure. Active managers could also be affected by the decision.

In 2018, Blankfein had raked in an annual salary of $ 20.5 million, up from $ 24 million in the previous year. His successor, Davis Solomon, received $ 23 million last year.

The 1MDB scandal damaged the image of the New York money house. Solomon has already announced that it will work closely with investigators to investigate the case. (APA, 3.2.2019)