Goldman Sachs a target of shareholders?

Over the years, you have to envy the way the top banks have avoided the wrath of shareholder activists. They've been enormously profitable, of course, and that covers a multitude of sins. If you're a shareholder, you've been happy to hold the likes of Goldman Sachs and Bear Stearns. One area where banks have been vulnerable is in the treatment of options. A new derivative shareholder suit filed against Goldman argues that the firm's proxy statement undervalues option awards due to faulty use of Black Scholes. The result: Top executives received excessive compensation, which "constitutes corporate waste." Lehman settled such a case not too long ago.  In related news, we were a bit surprised to hear that Goldman is the target of gadfly Evelyn Davis, who has issues with the way the company hands out options. Now, a gadfly is hardly CalPERS. My sense is that this is a non-starter. But who knows. Davis has given some company fits.

For more:
- here's the AP article