Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Proxy Contest (March 2010)
13 slides from Goldman Sachs Group, Inc. (the)'s proxy contest presentation, Mar 19, 2010
Slide 1: Margin and cost comparison footnotes
_____________ 1 COGS represents Cost of Goods Sold; SG&A represents Selling, General and Administrative expenses. 2 Pre-tax margin is defined as pre-tax income divided by total net revenues. 3 Data based on public filings for publicly traded Fortune 500 companies as of December 31, 2008. Data based
Slide 2: Compensation Growth vs. Net Revenue Growth
‘ompensation Growth 20% 60% 90% 120% Net Revenue Growth
Slide 3: Compensation growth and net revenue growth demonstrate a robust, but not perfect, correlation
• Compensation growth and net revenue growth demonstrate a robust, but not perfect, correlation • The less-than-perfect correlation is principally driven by years in which revenues grew more significantly than compensation, with the corresponding benefit accruing to shareholders (i.e. 2009) • This b
Slide 4: Compensation ratio
_____________ Compensation ratio is defined as compensation and benefits expenses divided by net revenues. Compensation ratios in years 1999 and 2000 exclude nonrecurring employee initial public offering and acquisition award expenses of $2,257mm and $290mm, respectively. Compensation ratio in 2008
Slide 5: Fiscal 2008 reference note
_____________ References to 2008 refer to the fiscal year ended November 28, 2008 and do not include the one-month transition period ended December 26, 2008, which resulted from our change in fiscal year.
Slide 6: Peer comparison of pre-tax earnings
_____________ Peer average comprised of BAC, C, MS and JPM; references to 2008 for GS and MS refer to the fiscal year ended November 2008 and do not include the one-month transition period ended December 2008, which resulted from a change in fiscal year. Pre-tax earnings include the impact of mark-t
Slide 7: Compensation to Net Revenue Ratio
Compensation to Net Revenue Ri 2009 3009 4009 FY2009
Slide 8: Peer average comparison
_____________ 1 Peer average comprised of BAC, C, MS and JPM; references to 2008 for GS and MS refer to the fiscal year ended November 2008 and do not include the one-month transition period ended December 2008, which resulted from a change in fiscal year. Pre-tax earnings include the impact of mark
Slide 9: Compensation mix
Ena ans orm 2003 2004 2008-2008. 20072008 2009, sEquly cosh
Slide 10: Average compensation mix 2003-2009
_____________ 1 Average ‘03 – ‘09 compensation mix excludes 2008. 2 References to 2008 refer to the fiscal year ended November 28, 2008 and do not include the one-month transition period ended December 26, 2008, which resulted from our change in fiscal year.
Slide 11: Average annual return on equity relative to peers
_____________ 1 Represents GS’ average annual Return on Equity (ROE) relative to peer group from 1999-2009; GS ROE equals net earnings applicable to common shareholders divided by average monthly common shareholders’ equity; GS ROE for 1999 and 2000 are pro forma as previously publicly disclosed; Pe
Slide 12: Cumulative stock return versus peers
500% 400% 218.6% 300% & 700% 100% (24.5)% 2.0)% (46.6)% (58.5)% on (90.5)% May-99Nov-00May-02Nov-03May-05Nov-06May-08Nov-09 —cs —ms —eac ——c ——Jem —sep Financials
Slide 13: Capital returned relative to book value
_____________ Market data from 5/3/99 through 12/31/09; GS return shown from IPO price of $53.00. Peer average comprised of MS, JPM, C and BAC; calculated as average annual percentage of beginning of period book value per year from 2000 through 2009; 2009 dividends paid for GS include stub period di