Yet following a year of record earnings and revenue last year, with strong gains in every business line, Paulson spent much of Goldman's annual shareholder meeting in Manhattan responding to two shareholder groups who opposed the environmental policy.

In an otherwise routine meeting, the environmental policy and Paulson's roles as chairman of both Goldman and the Nature Conservancy, an environmental group dedicated to conservation, proved to be the only contentious issue.

Paulson, however, said Goldman's environmental policy has won wide praise.

"I can't think of anything we've ever done that's been as overwhelmingly approved by constituents. We got favorable comments from clients, from shareholders and from our people," Paulson said.

The National Legal and Policy Center submitted a proposal calling for Goldman to publish a conflict-of-interests report and argued Paulson allowed personal interests to interfere with the firm's operations.

Also at the meeting was the Free Enterprise Action Fund, which has for months published open letters critical of the Goldman's policy and Paulson's role as chairman of the Nature Conservancy. The Free Enterprise fund, which seeks to oppose any interference with free markets, argued the policy could harm the bottom line by alienating industrial clients and retarding development in emerging markets.

"I don't want to see resources distracted for something seen as your hobby," said Tom Borelli, of Free Enterprise.

The shareholder proposal received votes from only 178 shares, or less than a tenth of a percent of shares cast.

Paulson also countered his critics by saying that Goldman's financial performance last year and in previous years should dispel concerns about management distraction.

Goldman last year earned US$5.63 billion, with per-share earnings up 26 percent and a return on equity of 36 percent. Record revenue was fueled by its best investment banking in four years, a top ranking in M&A volumes, and record fixed-income trading revenue even as interest rates rose and the yield curve flattened.