[ by Melanie Gretchen ]

The SEC rejected Goldman Sachs's request to drop a shareholder proposal from the proxy statement for its annual meeting.  It was never intended for shareholders to control the fate of the firm's Chairman and CEO.  Yet, that is what will happen.  

Shareholders will vote on whether a single individual should serve in the dual role of Chairman and CEO - much the same way that Jamie Dimon holds court at JPMorgan Chase.  However, most other firms have made the change to splitting the roles. 

CTW Investment Group, which owns 25 shares of Goldman Sachs, sent the proposal to the bank late last year for inclusion in the 2013 proxy statement.  CTW argued that the Chair should be filled by an outsider who has never held an executive role at the company.  This, they say, would "promote the robust oversight and accountability of management."  CTW is a coalition of unions that has become more active in proxy battles in recent years.

Goldman's response was to request the SEC in writing to permission the firm to omit the proposal from the proxy statement - because it was "inherently vague and indefinite."   [C-I Note:  That explanation seems vague and indefinite.  Then again, we're not lawyers, here.]   Just last week, the SEC responded with a rejection, saying the agency is "unable to concur."

[C-I Note: Would Chairman and CEO Lloyd Blankfein remain on board without the chairman's mantle?  Stay tuned. ]

For further details, go to [Reuters, 3/8/13].