SAN FRANCISCO (MarketWatch) -- Goldman Sachs Group Inc. scrapped cash bonuses for top executives for this year and unveiled other compensation changes Thursday after pressure from some shareholders and tough new government curbs on pay in the financial sector.

Goldman GS, +2.12% said its 30-person management committee will get bonuses in the form of "shares at risk" in 2009 instead of cash. The shares cannot be sold for five years. The management committee includes Chief Executive Officer Lloyd Blankfein, Chief Financial Officer David Viniar and Chief Operating Officer Gary Cohn.

The five-year holding period includes a bulked-up provision that lets Goldman take the shares back if employees conduct "materially improper risk analysis" or fail to voice concerns about risks enough, the firm said.

Goldman didn't say who or how such things will be decided, but the firm said the provision goes beyond its current "clawback" system, which covers fraud, malfeasance and any other employee conduct that hurts the firm. Read related commentary about Goldman's new pay plan.

Shareholders will also get an advisory vote on Goldman's compensation principals and the pay of its top executive officers at its 2010 annual meeting, the firm added.

Goldman came through last year's financial crisis better than most large financial institutions, and it reported record results earlier this year. However, that's left a huge bonus pool, which has become controversial because some critics claim it benefited a lot from the bailout of American International Group AIG, +0.87% and other government efforts to save the financial system from collapse.

By the end of the third quarter, Goldman had accrued more than $15 billion to cover the cost of year-end bonuses, salaries, health care and other employee benefits.

Goldman was among the first institutions to repay government investment it got from the Trouble Asset Relief Program, or TARP. The firm has also argued that it would have been fine if AIG had been allowed to collapse.

By showing that it could have managed without government help, Goldman likely hoped to avoid too many restrictions on how it pays executives and other top employees, giving it a potential recruiting edge over rivals like Citigroup Inc. C, +1.62% and Bank of America Corp. BAC, +1.34% that have leaned more heavily on taxpayers.

However, some Goldman shareholders have reportedly expressed concern about the firm's hefty compensation recently. That may have encouraged the firm to unveil Thursday's changes.

"This is actually quite heartening," said Thomas Conaghan, a partner in the Washington, D.C., office of McDermott Will & Emery LLP who specializes in securities law, corporate governance and executive compensation.

"Most of the focus right now in the marketplace has been on big banks rushing to repay TARP so they can again pay large cash bonuses to their senior people," Conaghan added. "This decision by Goldman Sachs is really going to put pressure on those banks to act responsibly in their executive compensation practices."

Goldman's announcement also came after the U.K. government introduced a 50% tax on bank bonuses over 25,000 pounds ($40,700). The tax may affect U.K.-based employees of Goldman and other U.S. financial institutions. See story on U.K. pre-budget report.

France may be considering a similar tax. Read about France's possible bonus tax.

Blankfein said Goldman's policies accurately reflect its performance and encourage behavior that's "in the public's and our shareholders' best interests."

"By subjecting our compensation principles and executive compensation to a shareholder advisory vote, we are further strengthening our dialogue with shareholders on the important issue of compensation," he added in a statement.

Goldman said it will continue to refine and improve its pay practices, by linking compensation to multi-year performance, aligning compensation with the long-term interests of the firm and shareholders, while making sure there are enough incentives to attract, retain and motivate talented employees, without encouraging excessive risk-taking.

Goldman shares edged up 29 cents to close at $166.73 Thursday.