Some Press Is Bad

Goldman Sachs warned that bad press is now one of its ongoing business risks. The Wall Street Journal noted the ‘New Risk’:

In its annual report, the New York company [Goldman]  said “adverse publicity” could have “a negative impact on our reputation and on the morale and performance of our employees, which could adversely affect our businesses and results of operations.”

The Journal refrained from asking whether Goldman’s employees will need raises to keep them from fleeing the firm for all those on Wall Street the press loves. But it did tuck in this note at the end: Goldman Sachs’ board “rejected demands from shareholders that the firm investigate excessive pay and take steps to recoup some of the awards given to executives.” Guess Goldman didn’t read the Supreme Court decision about how business works.