Does anyone really need two mansions in the Hamptons, Wall Street’s favorite summertime watering hole? Lloyd Blankfein, the CEO at banking giant Goldman Sachs, has apparently decided he can get by with just one.
Blankfein recently sold his first Hamptons manse – a seven-bedroom affair with a sunken tennis court that he bought in 1995 – for $13 million. From now on, he’ll have to make do with only his second Hamptons manse, a 7.5-acre spread that set him back $32 million in 2012.
A good many shareholders at Goldman Sachs would like to see billionaire Blankfein making do with less – much less – on another front as well. His paycheck.
At Goldman’s May annual meeting, the bank’s board of directors put up for a shareholder advisory vote an executive pay plan that cut Blankfein’s annual compensation by $1 million, down to $23 million. Over a third of Goldman’s shareholders voted their disapproval. They wanted to see a bigger cut.
Poor Blankfein may feel he’s getting picked on. He shouldn’t. He has company. We’re now witnessing growing worldwide shareholder angst over executive pay excess.