For the second year in a row, Goldman Sachs Group fended off a shareholder proposal that could have led to a messy public vote to strip Chief Executive Lloyd Blankfein of his chairman’s title.

CtW Investment Group, an adviser to union pension funds with $250 billion of assets, agreed to withdraw its proxy proposal seeking a split after the company agreed to give Goldman’s lead director, James Schiro, new powers such as setting board agendas and writing his own annual letter to shareholders.