IBEW Fund Sues Goldman Over Pay Practices

Law360, New York (March 9, 2010, 5:33 PM EST) -- 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...
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