Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Proxy Contest (April 2011)
10 slides from Goldman Sachs Group, Inc. (the)'s proxy contest presentation, Apr 1, 2011
Slide 1: Pre-tax margin and COGS definitions and data notes
COGS represents Cost of Goods Sold. Pre-tax margin is defined as pre-tax income divided by total net revenues. Data based on public filings for publicly traded Fortune 500 companies as of December 31, 2010. Data based on 2000 – 2010 average pre-tax margins for public Fortune 500 companies excludes n
Slide 2: Compensation ratio definition and notes
Compensation ratio is defined as compensation and benefits expenses divided by net revenues. Compensation amounts for 1999 reflect results for the FY ended November 1999. Compensation ratio in 2008 excludes 4Q 2008 severance costs of approximately $275mm. Compensation ratios include employee initial
Slide 3: Compensation ratio definition and notes
Compensation ratio is defined as compensation and benefits expenses divided by net revenues. Compensation amounts for 1999 reflect results for the FY ended November 1999. Compensation ratio in 2008 excludes 4Q 2008 severance costs of approximately $275mm. Compensation ratios include employee initial
Slide 4: NEO compensation: retention, RSUs and forfeiture provisions
n As in previous years, all NEOs must retain 75% of the after-tax shares they receive as compensation for so long as they are NEOs n 70% of the 2010 variable compensation paid to our NEOs was in the form of restricted stock units (RSUs) ; the remainder was in cash — Our Chief Risk Officer’s annual r
Slide 5: Compensation to Net Revenue Ratio
3.0% Compensation to Net Revenue Ratio 38 pers pea ‘on. me Free
Slide 6: NEO 2007 Year-End Equity Compensation - Indicative Quarterly Valuation Trends
NEO 2007 Year-End Equity Compensation - Indicative Quarterly Valuation Trends 2
Slide 7: ROE versus US peer average
Source: Company filings. Note: US peer average includes MS, JPM, BAC, C; ROE defined as net income available to common shareholders as a percentage of average common equity. GS ROE for 1999 and 2000 are pro forma as previously disclosed. Adjusted ROE of 13.1% excluding the impact of the UK bank payr
Slide 8: 100% are
400% 273% 200% i i 200% 100% are G75)% (09% (3% (86) om May89 Jul Sep03 NovO5 Jand8 Mar-10
Slide 9: Market data notes: return since IPO and capital returned
Market data from 5/3/99 through 12/31/10. GS return shown from IPO price of $53.00. Peer average comprised of BAC, C, JPM and MS; Calculated as average annual percentage of beginning of period book value per year from 2000 through 2010; 2009 dividends paid for GS include stub period dividends, and 2
Slide 10: ROE, BVPS, EPS and compensation metrics versus peers
n ROE exemplifies a firm’s ability to generate returns on shareholders’ investment — GS’ average ROE is 8.1 percentage points higher than the peer average Book Value Per Share (BVPS) CAGR n Demonstrates a firm’s ability to grow its shareholders’ stake in the common equity of the firm — GS’ BVPS grow