Some Goldman Sachs Shareholders Want a Bigger Piece of the Pie

Some of the biggest shareholders of Goldman Sachs (NYSE: GS) have asked the firm, which is set to deliver $20 billion in bonuses, to pass more of the substantial profit along to investors, according to a report in the Wall Street Journal.

The investors feel that the firm, which received $10 billion in taxpayer dollars to help battle the financial crisis, should reward the shareholders after the company rebounded this year. The investors are not looking for a large cut, just something to help them reap the benefits of the recent profits of Goldman Sachs.

Shareholders have called for closer scrutiny of pay as regulators and politicians fear that banks are moving back to bonus plans that preceded the implosion of the large-cap banks such as Lehman Brothers.

After the government provided an influx of cash into banks such as Goldman Sachs, along with the Group of 20 nations, guidelines have been put in place to promote long-term performance rather than short-term prosperity for the banks.

Goldman Sachs has repaid the government handout, as it earned net income in excess of $3 billion, causing the push from investors for higher returns.

Some of the major Goldman Shareholders are concerned about the largely unnoticed change in the company's financial statements which impacted its total headcount by adding temporary employees and consultants. This is important because the company's staff is on pace to take in about $717,000 apiece in 2009.

The Wall Street Journal quoted Goldman spokesman Lucas van Praag when he stated that shareholders "have historically been more focused on the absolute return on equity and on book value per share growth" than per-share earnings.

Shares for Goldman are at $171.60 before the market opens today.

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