05/06/2010
year:
2010
Philadelphia, PA—When executives from the financial giant Goldman Sachs meet with shareholders in New York City on Friday, they will face questions about the Securities & Exchange Commission’s fraud investigation making headlines. Thanks to a pay disparity resolution sponsored by the Sisters of St. Francis of Philadelphia, the Northwest Coalition for Responsible Investment (NWCRI), and the Nathan Cumming Foundation, they will also have to answer to shareholders about their excessive executive compensation.
“We believe that much of Goldman’s recent trouble and the precipitous drop in its share price can be traced to a pervasive culture of greed fueled by enormous bonuses,” said Sister Judy Byron, OP, Director of NWCRI. According to Sister Nora Nash, OSF, Director of Corporate Responsibility for the Sisters of St. Francis of Philadelphia, “the evident excesses in pay disparity are creating a deeper gap between those who are rich and those who are poor.”
The shareholder resolution filed by the Sisters of St. Francis of Philadelphia, NWCRI members, and the Benedictine Sisters of Mt. Angel asks Goldman Sachs to conduct a review of the internal pay disparity and the appropriateness of executive compensation levels. “When shareholders asked the company to report on the appropriateness of its compensation levels, Goldman fought it all the way to the SEC,” said Sr. Nora. “And while Main Street struggles to recover, Goldman executives have ignored the impact of their actions on both the American economy and the company’s long-term share price,” according to Sr. Judy.
The Sisters of St. Francis of Philadelphia are well positioned to understand the concerns of Main Street. They are known throughout the Delaware Valley for their ministry in education, hospitals, and homeless shelters. They manage to do all of this with limited government funds and with the support of many friends and benefactors.
“While our global economy is teetering on the brink of collapse, financial institutions like Goldman Sachs have lost sight of any sense of responsibility to shareholders, to eradicating global poverty and to working for the common good,” said Sister Nora.
The Sisters of St. Francis of Philadelphia are part of the Philadelphia Coalition for Responsible Investment (PACRI), and NWCRI as well as the Interfaith Center on Corporate Responsibility, (ICCR). They are faith-based institutions committed to using our responsibility as investors to shape a more just world. Members use their rights as shareholders to dialogue with companies about corporate policies and practices in order to promote economic and environmental justice.
For the full text of the resolution, visit www.ipjc.org.
For the Sisters of St. Francis of Philadelphia, visit www.osfphila.org.
