Over the past few years, the decisions made by large banking organizations have greatly impacted our families. To better align shareholder and consumer interests with corporate behavior, we're asking Goldman Sachs to decrease the incentive for risky investments. In the past, executives and employees have received compensation based on risk taking and short term return. We want to change this.
We're asking Goldman Sachs to link long term business growth, sustainable value creation and compensation to help discourage excessive risk taking.
Dear Ms. Miner,
As consumers and shareholders, our lives have been greatly impacted by the decisions made by banks and financial institutions. While we trusted you with our savings, retirement and children's college funds, ultimately we were hurt by the risky business practices in which you engaged when the financial industry was bailed out with our taxpayer dollars. This damaged our faith in your institutions and severely decreased the value of our investments.
While we can't pretend to be experts in advising bank practices, we would like to have more clarity and transparency when it comes to your risk management structures. For example, reports of large compensation packages and executive bonuses shortly after risking your shareholders' investments and faith in the company seem out of place. We would like to more closely align executive pay and performance with the hope of creating additional shareholder value, transparency and risk mitigation.
For example, tying pay and sustainable value creation together may help ensure that your business goals promote the long term health of Goldman Sachs. Eliminating excessive risk taking will also help restore our faith and align business practices and shareholder interests. Furthermore, we recognize that your company has recently taken steps to make your executive clawback policy more stringent. We appreciate this change and hope to apply the same long term outlook to annual pay by evaluating performance with regard to sustainable value creation.
As shareholders and consumers who utilize your banking services, we urge you to consider this request. We need to be assured that the institutions we trust will have our best interests in mind, and until Goldman Sachs releases a public statement enacting alignment between risk, reward and shareholder interest, we cannot recommend your services to others. Additionally, we intend to encourage fellow Moxy Vote users that are Goldman Sachs shareholders to penalize the board of directors by voting against any directors up for re-election if this issue is not addressed to our satisfaction.
We look forward to communicating with you further, and please keep us updated on Moxy Vote.
