FILE PHOTO: Lloyd Blankfein, Managing Director of Goldman Sachs, listens to the question at the Boston College Head Club at noon on March 22, 2018 in Boston, MA, USA. REUTERS / Brian Snyder
(Reuters) – The board of Goldman Sachs Group Inc. announced on Friday that he had withheld a $ 7 million bonus from former executive director Lloyd Blankfein until investigations into the bank's involvement in the 1MDB scandal have been resolved.
In its annual compensation plans, the Bank also introduced a new loss-making rule for senior executives, current Managing Director David Solomon, and former manager Blankfein for the ongoing 1MDB procedure.
This step emphasizes that the 1MDB scandal is still in the hands of Goldman, which is being investigated by the Malaysian authorities and the US Ministry of Justice as signatories and organizers of three bonds, which earned $ 6.5 billion (£ 5 billion) in 1Malaysia Development Berhad. .
The US Department of Justice estimates that between 2009 and 2014, high-level 1BDB fund officers and their associates totaled $ 4.5 billion, including some of the funds Goldman Sachs helped raise.
Goldman Sachs consistently denied the violations.
The company announced on Friday that its board of directors may reduce executive pay packages if it is later found that the results of ongoing investigations related to the 1MDB procedure would have affected the decisions on compensation at the end of the year.
Wall Street also said that in 2018 it paid $ 23 million to Solomon, which is 9.5 percent.
Blankfein received $ 20.5 million in annual compensation in 2018, which has fallen by $ 3.5 million from 2017 onwards.
Diptend Lahiri Reporting in Bangalore; Edited by Arun Koyyur and Daniel Wallis