Goldman Sachs has doubled the salary of its chief executive, David Solomon, to $ 35 million last year when the US bank made record profits during a boom in Wall Street transactions.
Solomon earned $ 17.5 million for 2020, $ 10 million less than the previous year, after the bank’s board reduced the salaries of senior executives in the wake of the 1Malaysia Development Berhad corruption scandal, in which Goldman admitted that he paid bribes to secure jobs to raise money for to raise the Malaysian Sovereign Wealth Fund.
In a securities filing Friday, Goldman said Solomon received a base salary of $ 2 million in 2021, unchanged from the previous year. Its variable remuneration was $ 33 million, including an approximately $ 10 million cash bonus and a $ 23.1 million share allotment linked to the bank’s performance.
In October, Goldman said it had valued performance-based shares $ 30 million to Solomon and $ 20 million in stock for Group President John Waldron. These awards will be paid out in October 2026.
Goldman has a 2021 net profit of $ 21.2 billionmore than double the level of the previous year and easily the largest in the bank’s history.
However, Goldman said its fourth-year profit fell 13 percent to $ 3.8 billion year-on-year as payments including bonuses rose 31 percent to $ 3.2 billion.
In an interview with the Financial Times earlier this month, Solomon said: “There is no doubt that inflationary pressures around compensation have had an impact.”
Solomon’s 2021 payment was about the same as that by James Gorman, CEO of Morgan Stanley, Goldman’s traditional investment banking competitor. Jamie Dimon, CEO of JPMorgan Chase, the largest US bank by assets, has been paid $ 34.5 million.
Gorman earned a base salary of $ 1.5 million, a cash bonus of $ 8.375 million, $ 5.025 million in a deferred share allotment and a performance-based share bonus worth $ 20.1 million. Dimon is paid a base salary of $ 1.5 million and a performance-based bonus of $ 33 million.