IBEW Fund Sues Goldman Over Pay Practices

By Christopher Norton

Law360, New York (March 09, 2010, 5:33 PM ET) -- A major union pension fund has slapped the top players at Goldman Sachs Group Inc. with a lawsuit alleging the firm's notorious pay structure is grossly unfair to its shareholders.

The International Brotherhood of Electrical Workers Local 98 Pension Fund filed its shareholder derivative complaint against Goldman's directors in the Delaware Chancery Court on Monday, alleging the firm's practice of allocating nearly 50 percent of revenue to management's compensation constitutes corporate waste.

“Goldman's employees are unreasonably overpaid for the management functions that they undertake, and shareholders...
To view the full article, take a free trial now.

Already a subscriber? Click here to login

You must correct or enter the following before you can submit this form:

All fields required

  5. Required

Only Law360 gives you:

Non-stop coverage of high-stakes litigation across 30 practices

Real-time tracking and reports on 10,000+ companies, firms and industries

Over 80,000 attorney profiles with neutral data collected from active lawsuits

Research tools to find cases, court documents, attorneys and companies

Customized feeds and alerts that can easily be shared with colleagues

In-depth expert analysis from high-profile attorneys at top firms

Access to our vault with over 75,000 original articles