Bay Point, CA. 94565

July 24, 2015

John F. W. Rogers,

Secretary to the Board of Directors

The Goldman Sachs Group, Inc.

200 West Street,New York

NY 10282

Re: Shareholder Proposal

Dear Secretary to the Board of Directors:

            Enclosed please find my shareholder proposal for inclusion in our proxy materials for the 2016 annual meeting of shareholders and Scottrade letter of my shares ownership.  I will continuously hold these shares until the 2016 annual meeting of shareholders.

Should you have any questions, please contact me at 1-925-643-**** or zhao.cpri@gmail.com.

                                                                                                            Yours truly,

                                                                                    Jing Zhao

Enclosure: Shareholder proposal

          Shares ownership letter

Shareholder Proposal on Compensation Committee

Resolved: shareholders recommend that The Goldman Sachs Group, Inc. (the firm) reform the Compensation Committee to include outside independent experts from the general public to adopt new compensation principles responsive to America’s general economy, such as unemployment, working hour and wage inequality.

Supporting Statement

According to the firm’s Proxy Statement, 2015 Annual Meeting of Shareholders (page 57), in 2014 the Chairman and CEO’s total compensation is $22,162,912; the President and COO’s total compensation is $20,200,084; the CFO’s total compensation is $20,177,797; the Chairman of Goldman Sachs Asia Pacific’s total compensation is $24,225,462; the Co-CEO of Goldman Sachs International’s total compensation is $21,061,873.  Our firm’s Compensation Committee “again retained Semler Brossy as its independent compensation consultant in 2014” (page 46).  However, any single consulting firm cannot represent the wide general public, such as unions and academic societies, to advise a fair, just and ethical compensation policy.

As Thomas Piketty stated, “there is absolutely no doubt that the increase of inequality in the United States contributed to the nation’s financial instability.” (Capital in the Twenty-First Century, trans. Arthur Goldhammer.Cambridge: The Belknap Press ofHarvardUniversityPress, 2014. p.297)  “Let me return now to the cause of rising inequality in theUnited States. The increase was largely the result of an unprecedented increase in wage inequality and in particular the emergence of extremely high remunerations at the summit of the wage hierarchy, particularly among top managers of large firms.”(p.298) And, “the financial professions are about twice as common in the very high income groups as in the economy overall.” (p.303)  “Because it is objectively difficult to measure individual contributions to a firm’s output, top managers found it relatively easy to persuade boards and stockholders that they were worth the money, especially since the members of compensation committees were often chosen in a rather incestuous manner.” (p.510)

This proposal should also be evaluated in the context of our company’s allover compensation policy for employees, such as the overloading working hour issue.