April 28, 2025
In our recent Comp & Benefits Brief, The Retention Bonus Backlash: What Executives and Compensation Committees Need to Know, we explored growing concerns about time-vested executive retention awards untethered from performance metrics. A key example was Goldman Sachs’ January 2025 grant of $80 million in restricted stock units (“RSUs”) to Goldman’s CEO and COO, subject to service-based vesting over five years.
Recent Developments: Shareholder Response
Goldman’s 2025 Annual Meeting results underscore that shareholder discontent has become a measurable reality:
This sharp decline demonstrates that large retention bonuses without meaningful performance conditions are increasingly unacceptable to shareholders, even for market-leading companies like Goldman.
Key Takeaways for Compensation Committees
Final Word
As shareholder expectations continue to evolve, compensation committees may benefit from revisiting the structure, size, and disclosure of retention awards. Thoughtful planning and clear communication can help boards and compensation committees balance leadership retention objectives with emerging governance standards.
How Nelson Mullins Can Help
Our Executive Compensation & Benefits team partners with public and private companies, compensation committees, and senior executives to design executive compensation programs that balance talent retention with shareholder expectations. We help:
In the current environment, retention bonuses must be strategic, defensible, and performance-sensitive to protect both leadership continuity and shareholder relations.
For additional insights or to discuss how these developments may affect your executive compensation strategy, please contact:
Matthew R. Zischke
Partner, Executive Compensation & Employee Benefits
Nelson Mullins Riley & Scarborough LLP
matthew.zischke@nelsonmullins.com | 404-322-6312
Established in 1897, Nelson Mullins is a full-service Am Law 100 firm of more than 1,000 attorneys, policy advisors, and professionals with offices across the United States. For more information, go to www.nelsonmullins.com.
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