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When Goldman Sachs announced earlier this month that its 30-member Management Committee won’t receive cash bonuses for 2009, the global investment bank once again demonstrated its leadership on one of the most contentious issues of the year – executive compensation.

As a key part of the bank’s overall plan, Goldman’s leaders will now receive 100 percent of their discretionary compensation in “shares at risk” in the company, which are subject to restrictions for five years and cannot be sold during that period. Certainly, this initiative better aligns the interests of senior executives with those of the firm – and thus its clients and investors.

The investment bank also built upon its existing clawback mechanisms to ensure that any “conduct detrimental to the firm” – and not just acts of fraud or other malfeasance – would trigger a clawback. Goldman said it best in its news release: “Enhancing our recapture provision is intended to ensure that our employees are accountable for the future impact of their decisions, to reinforce the importance of risk controls to the firm and to make clear that our compensation practices do not reward taking excessive risk.”

At a time when previously employed risk/reward structures are under increased scrutiny from all angles, this program demonstrates that the investment bank understands the value of a politically attuned ear.

Goldman could have responded to mounting pay pressure by pointing to its solid third-quarter earnings and making the case that its people are worth the money – but it didn’t. Boldly, the firm took action on a matter than will continue to be among the marquee corporate governance issues of 2010. The bank went even a step further by announcing that shareholders will have an advisory vote on executive compensation policy at its 2010 annual meeting.  Having moved on “say on pay” as well, it’s hard to argue that Goldman hasn’t met or exceeded many of the corporate governance best practices that clients, investors, regulators, and the Congress have outlined.

Now, the question on Wall Street, inside the Beltway, and elsewhere is whether other financial institutions will match Goldman’s reforms. While other investment banks aren’t making the same money – so the heat they’re feeling might not be as intense – Goldman has set a standard that they’ll have to address.

If one thing is clear, it’s that high-profile questions concerning appropriate executive compensation aren’t going anywhere in 2010.

Michael W. Robinson is Senior Vice President and Chair of the Corporate Practice at Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.