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 millions of dollars, 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, which claims assets were plundered from the fund. Goldman has said it was the victim of deceptive Malaysian officials.