A major proxy advisory firm recommended shareholders vote against Goldman Sachs's executive compensation plan, and added that Morgan Stanley was also paying its top staff too much.
Reuters reports that Glass Lewis issued the recommendations ahead of the banks' annual meetings where shareholders vote in a non-binding motion on executive pay.
The criticism of executive compensation comes after a Wall Street Journal report that Coca-Cola is likely to revise its equity compensation plan for executives following pressure from top shareholder Warren Buffett.
Glass Lewis said that the two banks were planning to pay too much, considering their performance was lagging their rivals - particularly in the case of Goldman Sachs.
To access the complete Reuters article hit the link below:
Glass Lewis gives Goldman, Morgan Stanley poor ratings on executive pay
JPMorgan sees markets revenue declining 20 percent in second-quarter