AFSCME Employees Pension Plan, Washington, filed a shareholder proposal at Goldman Sachs Group Inc., calling for the company to replace CEO Lloyd C. Blankfein as chairman.
The proposal asks Goldman Sachs to adopt an independent chair of the board of directors.
The $850 million American Federation of State, County and Municipal Employees plan views the proposal as an important way to protect and enhance the economic value of its long-term investment in Goldman Sachs.
“The AFSCME plan believes … that separating the offices of CEO and chair will protect and improve Goldman's future performance and the value of its shares,” the statement said.
“A strong, independent board chair would focus Goldman on generating long-term value for its shareholders,” Gerald W. McEntee, AFSCME president, said in the statement.
The AFSCME plan submitted the proposal for inclusion at the company's annual meeting next year.
Goldman Sachs said in a statement: “A similar resolution proposed by another shareholder group was defeated by an overwhelming 81% majority at our shareholder meeting in 2010. We think we have robust governance structure in place with a very effective independent lead director, John Bryan. We always listen to our shareholders, so it is disappointing that AFSCME decided to go to the media before raising the issue with us.”
