0.2 C

Goldman Sachs CEO David Solomon just took a major pay cut after a disastrous year—But he’s still walking away with $25 million



Goldman Sachs Group Inc. cut Chief Executive Officer David Solomon’s compensation by about 30% to $25 million for 2022, a year in which the share price and profit tumbled and the firm retreated from a highly public effort to create a consumer bank.

The package includes a $2 million base salary and $23 million in variable compensation, with $16.1 million of that in the form of restricted stock units.

The investment-banking giant poured billions of dollars into its consumer effort, dubbed Marcus, only to suffer $3.8 billion in pretax losses over the past three years. Solomon has conceded that the company tried to push too quickly into the sector. 

Goldman embarked on one of its biggest rounds of job cuts ever this year, with a plan to eliminate about 3,200 jobs as it sought to keep a lid on costs.

An industrywide slowdown has crimped earnings across Wall Street. At Goldman, net income fell 48% to $11.3 billion last year, and the bank’s return on equity was 10.2%, below the 14%-to-16% target it set for itself earlier in 2022.

The shares dropped 10% in 2022, outperforming the 12% decline in the S&P 500 Financials Index.

Solomon, 61, was one of the best-paid CEOs at a major US bank for 2021, receiving $35 million in compensation — a figure matched by Morgan Stanley’s James Gorman for that year. For 2022, Gorman saw his pay cut by 10% to $31.5 million. JPMorgan Chase & Co. left CEO Jamie Dimon’s pay unchanged at $34.5 million for that year. 

— With assistance by Sridhar Natarajan

Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.

Source link

Subscribe to our magazine

━ more like this

Cornerstone Removals: UK’s Most Reliable and Flexible House Moves

Moving home can be a stressful and challenging experience, but with Cornerstone Removals, you can rest assured that your move will be smooth and...

Millions of Americans don’t have the luxury of moving on from the pandemic. We shouldn’t leave them behind  

When the pandemic broke out nearly three years ago, older Americans were vulnerable.  They still are today.  Since 2020, people 65 and over have comprised...

Apple’s once again trying to optimize the iPhone’s Crash Detection feature

Apple has released iOS 16.3.1, which includes “optimizations” for the iPhone 14 and 14 Pro’s Crash Detection feature that’s been criticized by some...

Opinion | Iranian Nationalists Reject the Regime

It‘s no longer true that a Western military strike would lend the theocracy stronger domestic support. Source link

Alternative hip-hop pioneer Trugoy the Dove of De La Soul dies at 54

David Jude Jolicoeur, known widely as Trugoy the Dove and one of the founding members of the Long Island hip hop trio De...