Goldman Sachs Board Pay Deal Rejected by Delaware High Court (1)

A $4.6 million settlement of claims that Goldman Sachs Group Inc. overpaid its board included too broad a liability release, Delaware’s top court ruled Tuesday, rejecting the deal over provisions that would have blocked separate challenges to future director compensation.

The state’s justices reversed a decision by Vice Chancellor Sam Glasscock III, who approved the agreement after rejecting a previous noncash version. The initial settlement extracted little more from Goldman than a pledge to keep in place certain reform measures it had already adopted.

Chief Justice Collins J. Seitz Jr., writing for a unanimous court, said the release went too ...