Goldman's 1MDB claw back plan - What you should know
Goldman pledged to reclaim $174 million from current and former top executives involved in the 1MDB scandal. REUTERSpic
GOLDMAN SACHS’ ROLE IN 1MDB SCANDAL
- Goldman Sachs has been investigated by regulators in at least 14 countries for its role in raising $6.5 billion in three bond sales between 2012 and 2013 for the 1Malaysia Development Berhad (1MDB) fund.
- Goldman bankers reaped about $600 million in fees to facilitate bond deals
- In 2018, the bank pleaded guilty to violating US foreign bribery rules in October over its role in the 1MDB scandal.
- Goldman maintained that just a pair of rogue employees were responsible for the bank’s part in the scandal.
- In July 2020, Goldman Sachs agreed in a deal that includes a $2.5 billion cash payout to the Malaysian government and a guarantee by the bank to return at least $1.4 billion from 1MDB assets seized around the world.
In October, Goldman pledged to reclaim $174 million from current and former top executives involved in the 1MDB scandal to recoup some money for the bank and to hold executives accountable.
Of the total, Goldman is seeking to claw back :
- $76 million from the three former employees most implicated in the scandal:
- Timothy Leissner
- Roger Ng
- Andrea Vella
- Five former senior executives including Former CEO Llyoyd Blankfein have been asked to return $67 million in long-term compensation awarded back in 2011.
- Current CEO, David Solomon including his chief operating officer, chief financial officer and international division head will have their 2020 pay cut by $31 million.
Cohn reportedly cashed out all his long-term Goldman bonuses when he was appointed as an economic advisor to the Donald Trump administration.
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Gary Cohn, Goldman Sachs Group Inc president and chief operating officer, arrives for a meeting at Trump Tower to speak with U.S. President-elect Donald Trump in New York, U.S., November 29, 2016. REUTERS/Lucas Jackson
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