Goldman Sachs Gives CEO David Solomon $80 Million Retention Bonus

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Goldman Sachs has more than quartered CEO David Solomon’s pay and set up $80 million in retention plans for him and President John Waldron to keep the couple at the top of the bank.

In the year The Wall Street bank, which reported one of its best years since the 2008 financial crisis, will increase Solomon’s pay by 26 percent to $39 million, according to regulatory filings.

Solomons has battled internal turmoil over the past two years following Goldman’s failed takeover of consumer banking, but the board and most investors have strongly backed its leadership and its decision to increase the importance of assets and wealth management, including alternatives.

“The company is delivering strong performance and the board is committed to continuing our efforts, ensuring stability and a strong succession plan,” Goldman said.

Solomon and Waldron’s retention rate dwarfs even the $50mn five-year package JPMorgan Chase offered Jamie Dimon in 2021. Morgan Stanley last year set aside a $20mn pot for new CEO Ted Peake and two of his successors. The highest job.

In addition, Goldman gave Salomon and Waldron and other top executives bonuses based on the performance of its alternative assets, in addition to stock and cash, for the first time. It is an indication that the bank has begun paying its top executives the same as private equity firms.

The stock portion of Goldman’s annual pay package is tied to meeting stock price targets and return on equity, while the bank’s cash, in contrast, is based on performance, known as a “carrier.”

Most banks and traditional asset managers use carry to reward their fund managers, but it’s rare to include it in top executives’ pay. Goldman Chief Financial Officer Dennis Coleman and senior attorney Kathryn Rumler, among others, are paid this way.

“Compensation is growing to enhance Goldman Sachs’ ability to attract and retain top talent, particularly from asset managers and other banks,” the bank said.