NEW YORK (CNN/Money) - Ford Motor Co.'s board will weigh a shareholder objection to a large initial public offering allocation given to its CEO, William Clay Ford Jr., by investment banker Goldman Sachs, according to a published report Tuesday.

Ford CEO William Clay Ford Jr.

William Ford was able to buy 400,000 shares of Goldman stock at the IPO price of $53. His paper profit hit $31 million when the shares reached $132 in September 2000. Shares of Goldman (GS: Research, Estimates) closed down $1.05 at $73.45 Monday. But even with share prices little better than half their high-water mark, his paper profit still stands at $8.2 million.

Allocations of IPO shares have been under increased scrutiny the past year amid questions of whether top corporate executives steered their companies' investment banking business to firms in return for personal profits from IPOs. Generally, the IPOs involved were hot tech issues the investment banks brought to market. Goldman, which had been owned by a partnership, was one of the last major brokerage firms to have its own IPO.

The Wall Street Journal reported Tuesday that the Ford board will consider the objection of a shareholder at its regularly scheduled meeting Thursday. The paper said the shareholder, Roger Berger, who reportedly owns 100 shares of Ford stock, argues that William Ford got the allocation due to his position with the automaker "and the actual or potential business relationship between the company and Goldman," and that therefore the allocation and profits should have gone to the company.

William Ford's spokesman, Jim Vella, denied the allegation, telling the paper, "It's important to note that this was a personal business transaction, and totally unrelated to company business." A Goldman spokesman told the paper that Ford family members are longtime clients of the firm's private-client brokers and that the allocations were "entirely appropriate."

The New York Times reported Sunday that John L. Thornton, one of two presidents and co-chief operating officers of Goldman, is a long-time personal friend of Ford from their days in prep school. Thornton also serves on the Ford Motor board of directors.

The Times reported that Goldman has earned $90 million in fees from the world's No. 2 automaker since 1996, although it pointed out is not its exclusive Wall Street firm, not handing its 1999 purchase of Volvo or its debt financing. But it was a key adviser on a complicated recapitalization deal in April 2000 that gave shareholders stock or cash worth $20 for each share.

The Times quotes Nell Minow, editor of the Corporate Library, a business watchdog group, as objecting to the relationship between William Ford and Thornton.

"You cannot be on the board of directors and also be doing investment banking work for the company," Minow said. "I don't care if he steps out of the room or not. You cannot be the umpire and the pitcher in the same game."

Shares of Ford (F: Research, Estimates) closed down 43 cents at $9.45 Monday. The Times said William Ford's Goldman stake is worth more than his holding of Ford Motor common stock, although he and members of his family also own a large stake in Class B shares that give them enhanced voting rights.