What started out as a shareholder spring is turning into a more widespread uprising on Wall Street.
The latest target of disaffected shareholders is Goldman Sachs, where an investor group that is a protege of Warren Buffett is pushing back against the firm’s longest-serving board member, James Johnson.
As if Goldman CEO Lloyd Blankfein needed another headache.
The Buffett fans, which run the $5.7 billion Sequoia Fund, led by co-managers Robert Goldfarb and David Poppe, are arguing that Johnson’s alleged lack of leadership as a board member on Fannie Mae and other companies should disqualify him as a director at Goldman.
“We respectfully ask that you vote your Goldman Sachs proxy against him,” the duo wrote in a letter to clients.
“Rather than act conservatively to protect taxpayers, during Johnson’s tenure Fannie ramped up its growth by buying lower-quality mortgages,” the April 18 letter reads.
“This bloated Fannie’s balance sheet, increased its profit and magnified the risk to taxpayers,” the Sequoia managers continued.
Sequoia’s cage-rattling against Johnson’s directorship comes on the heels of the investment bank being forced to compromise with activist union shareholder, the American Federation of Municipal and State Employees, which tried unsuccessfully to have Goldman split the role of chairman and CEO.
It also comes after Citigroup shareholders — in a rare move on Wall Street — voted down a $15 million pay increase for CEO Vikram Pandit on Tuesday at the annual shareholder meeting in Dallas
Goldman Sachs’ shareholder meeting is scheduled for May 24.
The 68-year-old Johnson has served on the bank’s board for 13 years.
Goldman is asking that shareholders vote in favor or re-electing Johnson, according a Goldman spokesman.
“He has served [Goldman shareholders] well since 1999 and will continue to do so,” the spokesman said.
Sequoia owns about 435,000 shares of Goldman.
mark.decambre@nypost.com
Goldman Sachs, Fannie Mae, Goldman CEO Lloyd Blankfein, Sequoia Fund, Warren Buffett, shareholder, Robert Goldfarb, David Poppe, shareholders, shareholders, Goldman shareholders, shareholder meeting
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