Goldman Sachs has increased the compensation of its chief executive, David M. Solomon, after the bank withdrew capital record profit last year.
Mr. Solomon payment for 2021 grew to $35 million, according to a filing on Friday. In 2020he was due to pay $27.5 million, equal to the 2019 amount, but his salary was paid $10 million after Goldman admitted criminal misconduct for his role in the robbery of a Malaysian sovereign wealth fund, known as 1MDB.
In its filing, the company cites “the continued strong performance and advancement of its growth strategy, as well as Solomon’s outstanding personal track record, including his leadership in the guide the company to achieve these results.”
Despite the pay cut, the scandal in Malaysia did not stop Solomon from reaping other rewards. In October, he was awarded a performance-related stock bonus of about $30 million – an amount meant to ensure that Mr. Solomon, who has served as chief executive since 2018, remains at the helm. in the next 5 years, the bank said in a submit at that time.
John E. Waldron, Goldman’s chairman and chief executive officer, received a $20 million stock bonus under similar terms, also in October.
Mr. Solomon joins other Wall Street bosses who received big pay rises after their banks posted big profits in 2021. He and James Gorman of Morgan Stanley, who were also awarded $35 million, currently ranks as the highest-paid executive among the giant US banks, while JPMorgan Chase’s Jamie Dimon has $34.5 million.
Goldman Sachs also rolled out performance-related stock awards to its management committee, according to the filing.
Executives at major Wall Street banks say the competition for talent is forcing them to raise wages, from junior bankers to senior executives.
https://www.nytimes.com/2022/01/28/business/david-solomon-goldman-sachs-pay.html Goldman Sachs rewarded its CEO with a salary increase of $35 million after a record year.