Goldman awards $ 30 million in stock in five years to chief David Solomon

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Goldman Sachs has granted a bonus plan to its two top executives that could pay the pair tens of millions of dollars apiece if the Wall Street bank meets its stock price targets over the next five years.

Within a regulatory framework deposit Goldman said on Friday it had awarded performance-based shares worth $ 30 million to chief executive David Solomon and $ 20 million in shares to group chairman John Waldron. The rewards would be paid in October 2026.

Goldman said the awards were aimed at “ensuring continuity of leadership”, aligning compensation with “rigorous performance thresholds” and “improving retention in response to the growing war for talent.”

The pair’s stock bonuses are divided equally into two compartments. One is paid based on Goldman’s stock price gains over the next five years, and the other is based on the performance of the bank’s stock against a set of six peers, including JPMorgan Chase. , Morgan Stanley and Bank of America.

Solomon has been Managing Director of Goldman since October 2018. The bank’s shares have risen about 80% under his tenure and recently hit an all-time high. However, it is still trading at a lower valuation multiple than its competitors such as JPMorgan and Morgan Stanley.

Solomon recently said in an interview with the Financial Times that the market would end up re-valuing Goldman’s stock if it followed a strategy of diversifying investment banking and trading.

Solomon earned $ 17.5 million for 2020, $ 10 million less than the previous year, after the bank’s board slashed senior management salaries following the 1Malaysia Development corruption scandal Berhad, in which Goldman admitted to paying bribes to get work and raise money for the Malaysian. sovereign fund.

Morgan Stanley’s James Gorman was the highest-paid U.S. bank chief executive for 2020, earning $ 33 million in total compensation, ahead of the $ 31.5 million awarded to JPMorgan’s Jamie Dimon.

Earlier this year, JPMorgan granted Dimon a “special grant” of 1.5 million stock options that are expected to be worth around $ 49 million after a 10-year vesting schedule.


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