Goldman could withhold some 2018 pay for top executives over Malaysia scandal


Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group

Michael Nagle | Bloomberg | Getty Images

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group

Goldman Sachs said it could withhold some pay from top executives as a result of an ongoing criminal probe of a Malaysian investment fund.

The Wall Street firm said in a regulatory filing Friday its board of directors had approved a forfeiture provision that gave it “the flexibility to reduce the size of the award prior to payment and/or forfeit the underlying transfer-restricted shares” of executive pay granted for 2018.

That could cost former CEO and Chairman Lloyd Blankfein and other top executives a bundle, depending on the outcome of an investigation into a Malaysian investment fund called 1MDB. Goldman had helped raise $6.5 billion for the fund in 2012 and 2013 in three bond deals, but now faces charges by the Malaysian government