Goldman Sachs has raised CEO David Solomon's pay by more than a quarter and created an $80 million retention plan for him and President John Waldron to ensure Both men went on to serve as top executives at the bank.
The Wall Street bank, which earlier this week reported one of its best years since the 2008 financial crisis, said it would boost Salomon's pay by 26% to $39 million in 2024, regulatory filings show.
Solomon has been fighting back internal turmoil over the past few years after Goldman's failed foray into consumer banking, but the board and most investors are firmly behind his leadership and his drive to elevate the importance of asset and wealth management, including alternative investments. Decide.
Meanwhile, three people familiar with the matter told the Financial Times that Waldron had briefly discussed taking the top job with private capital firm Apollo and had received approaches from other groups, firming up Goldman's plans to retain His determination.
"The company is delivering strong results and the board is determined to maintain our momentum, ensure stability and implement a solid succession plan," Goldman Sachs said.
The size of Solomon and Waldron's retention packages dwarfs even the $50 million five-year compensation JPMorgan awarded Jamie Dimon in 2021. Morgan Stanley last year established a $20 million bonus for new CEO Ted Peake and the two candidates he is competing against. The highest job.
In addition to stocks and cash, Goldman is for the first time paying bonuses to Solomon and Waldron and other executives based on the performance of its alternative asset funds. It's a signal that the bank is starting to pay its senior leaders in the same way as leading private equity firms.
The stock component of the annual compensation is based on the achievement of Goldman's stock price and return on equity targets, while there is also a component tied to the performance of the bank's funds, known as the "spread."
Most banks and traditional asset managers use spreads to reward their fund managers, but it is rare for them to be included in executive compensation. Goldman Sachs said people including Chief Financial Officer Denis Coleman and top lawyer Kathryn Ruemmler would also be paid this way.
"With competition for talent at Goldman Sachs particularly intense, including from asset managers and other non-bank players, it is continually improving compensation to enhance the firm's ability to continue to attract and retain the best talent," the bank said. ".
Goldman Sachs has lost partners and executives in recent years to asset managers, private capital and trading firms such as TPG, Citadel, Sixth Street and General Atlantic.
One Wall Street executive close to Goldman predicted that Waldron's big plans "will be received enthusiastically both internally and with partners. He is well-liked and respected throughout the industry."
Additional reporting by Stephen Gandel and James Fontanella-Khan