The board of Goldman Sachs (GS) awarded CEO David Solomon a 24% compensation increase for 2023 despite a profit decline and a dealmaking slowdown, offering a new show of support for Solomon after his most challenging year as boss.
Solomon's compensation for the year was $31 million, the bank disclosed Friday. Not only is that up from the $25 million he was awarded in 2022, it is more than his rivals Brian Moynihan and Charles Scharf made at Bank of America (BAC) and Wells Fargo (WFC).
Only JPMorgan Chase (JPM) CEO Jamie Dimon and outgoing Morgan Stanley (MS) CEO James Gorman were awarded more for their 2023 performance. Citigroup (C) has yet to disclose 2023 compensation for its CEO Jane Fraser.
The compensation increase could be a sign that board support for Solomon is solidifying after he spent much of 2023 attempting a tricky retrenchment from consumer lending while focusing the firm on its core strengths of trading, asset management, and investment banking.
Profits were down 24% at the Wall Street giant as dealmaking slowed across the industry and the firm absorbed costs associated with its consumer lending exit.
Its full-year net income of $8.52 billion was the worst mark for Goldman since 2019, Solomon's first full year in charge. The firm did, however, post a sizable gain in the fourth quarter as equities trading and wealth management rose.
A lot is in flux at Goldman as key executives depart, raising new questions about the race to eventually succeed Solomon.
One surprise exit in 2024 is Jim Esposito, who had been co-head of Goldman’s global banking and markets division and is leaving after nearly three decades. Esposito had been viewed on Wall Street as among the possible successors to Solomon.
That departure could focus attention on other potential CEO candidates, including president John Waldron, asset and wealth management head Marc Nachmann, or one of the other co-heads of the investment banking and trading operations.
Even the board of Goldman is changing. Last month ex-Goldman CFO David Viniar was named as the board’s lead director to replace Adebayo Ogunlesi, who stepped down after selling his infrastructure investment company to BlackRock.
The board awarded Solomon, who serves as board chair, $29 million in a discretionary bonus of which 70% is performance-based stock units. His $31 million in compensation also includes a base salary of $2 million.
Goldman’s stock peaked in August 2021, in the middle of the last dealmaking boom, at $420.73. Since Solomon was named CEO in October 2018, it has risen 72%. Year to date, the stock is down slightly.
David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.
The board of Goldman Sachs (GS) awarded CEO David Solomon a 24% compensation increase for 2023 despite a profit decline and a dealmaking slowdown, offering a new show of support for Solomon after his most challenging year as boss. Solomon's compensation for the year was $31 million, the bank disclosed Friday.
He was already being paid $24MM/yr. After declines in revenue, he is awarded a pay increase to an astounding and outrageous $31MM!!! Goldman CEO David Solomon received a 24% compensation boost for 2023, a new show of support for the embattled bank boss.
Goldman Sachs paid CEO David Solomon $31 million for 2023 — a 24% boost over the previous year, the bank disclosed in a Securities and Exchange Commission filing Friday. The boost comes despite a 24% dip in net income for Goldman, to $8.52 billion.
N) , opens new tab CEO David Solomon was awarded $31 million in compensation for 2023, up 24% from $25 million in 2022, the company said in a filing on Friday.
Solomon was given a 24% pay raise this year. He'll be earning $31 million — of which $2 million will be in base salary and $29 million will come in the form of variable compensation.
The board awarded Solomon, who serves as board chair, $29 million in a discretionary bonus of which 70% is performance-based stock units. His $31 million in compensation also includes a base salary of $2 million. Goldman's stock peaked in August 2021, in the middle of the last dealmaking boom, at $420.73.
The Treasury department forced Goldman, along with several other solid firms, to take bailout money despite their vigorous objections. Why does Goldman Sachs continue to insist that it would have survived without a government bailout in 2008?
Compensation for top executives had fallen in 2022 after a sharp decline in dealmaking and losses on consumer banking. The compensation for Goldman's top directors also went up in 2023. The highest paid was Peter Oppenheimer, who received $565,683 in 2023, compared with $515,461 in 2022, the statement said.
Partner managing directors at the firm receive salaries alone of $950k, plus bonuses, plus the opportunity to invest alongside Goldman Sachs itself in the firm's private equity funds, hedge funds and other investment vehicles. In 2022, Goldman Sachs' CEO David Solomon made $15.5m from these investments.
Our data indicates that BlackRock, Inc. has a market capitalization of US$116b, and total annual CEO compensation was reported as US$27m for the year to December 2023.
So King Solomon became richer and wiser than any other king on earth. People from every nation came to consult him and to hear the wisdom God had given him. Year after year everyone who visited brought him gifts of silver and gold, clothing, weapons, spices, horses and mules. This is opulence at the highest level!
Bank of America Executives Get Pay Bump Even After CEO's Compensation Cut. Bank of America Corp. disclosed pay increases of more than 10% for two of its highest-ranking executives a month after reporting that Chief Executive Officer Brian Moynihan's compensation was cut for 2023.
While previous papers attribute this trend to incentive concerns or managerial entrenchment, we show that it can be explained by the scarcity of CEO talent, competitive forces and the six-fold increase in firm size over the same period.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Morgan Stanley, Geode Capital Management, Llc, Capital World Investors, Bank Of America Corp /de/, and Spdr Dow Jones ...
When compared to the pay of average workers, the increase is even more dramatic: In 1992, CEOs were paid 82 times the average of blue-collar workers; in 2004, they were paid more than 400 times those salaries. “Barry Bonds makes a lot of money because he's a great baseball player.
Introduction: My name is Nicola Considine CPA, I am a determined, witty, powerful, brainy, open, smiling, proud person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
