PND (11/16/99) -- Goldman Sachs Lifts Restrictions on Stock for Charitable Donations

Investment firm Goldman Sachs has announced that, in order to facilitate gifts to charitable foundations and public charities, it will lift transfer restrictions on a limited amount of the common stock received by its former partners when the firm completed its incorporation and initial public offering in May 1999. The waiver applies to former partners who are retired or remain active in the firm's day-to-day business.

The 130-year-old firm went public in May in one of the largest initial public stock offerings in U.S. history. In the IPO, Goldman Sach 's 350 current and retired partners received roughly 256 million shares of stock collectively valued at some $19 billion.

Under Securities and Exchange Commission regulations, executives are forbidden from selling or transferring their stock for at least three years after an IPO. However, the firm has filed a registration statement with the SEC asking that charitable organizations be permitted to sell shares they receive from former Goldman partners. The waiver applies solely to shares donated for charitable purposes up to a value of $500 million.

"Goldman Sachs and its partners have a long tradition of charitable support and active community involvement," said Henry M. Paulson, Jr., chairman and CEO of the firm. "Since the public offering, the former partners have sought to direct a portion of the stock they received to educational and other charitable institutions. This transaction will accomplish exactly that."

Goldman Sachs also established a $200 million foundation with stock from its IPO. The company is expected to release details on the foundation's mission before the end of the month.

"Goldman Sachs To Facilitate Gifts To Charity." Goldman Sachs Press Release 11/10/99.

"Goldman Sachs Lifts Restrictions, Allows Executives to Donate Company Stock to Charity." Associated Press 11/11/99.

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