Home » Goldman’s David Solomon takes a near 30% pay cut to $25mn after rocky 2022

Goldman’s David Solomon takes a near 30% pay cut to $25mn after rocky 2022

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Goldman Sachs has paid CEO David Solomon $25 million for his work in 2022. This fell nearly 30% during a year when Wall Street banks reported his 50% drop in profits, cut hiring and cut employee bonuses.

In a regulatory filing Friday, Goldman said Solomon received a base salary of $2 million and $23 million in variable compensation.

Goldman said the Compensation Committee will consider some of its decisions to be “the company’s 2022 performance, not only in comparison to the record performance achieved in 2021, but also in absolute terms and relative to peers’ performance.” “It is based on

Solomon’s pay cut is bigger than his bank rival, challenge Year of Goldman. Solomon’s 2022 compensation has been the subject of speculation among Goldman officials in recent weeks, with many considering the bank’s financial performance and the company’s extensive overhaul of expenses. and expect significant reductions in 2022.

Goldman’s net profit in 2022 rammed Almost 50% down from 2021’s record profit. Its investment banking business suffered from a lack of deal-making activity across the industry. Meanwhile, Goldman was also hit by a sharp drop in the value of publicly traded shares it holds in its asset management division.

The bank also reported 2022 losses of $2 billion. peeled– Back up retail banking business.

Goldman of the Month cut The company cut about 3,200 jobs, or about 6.5% of its workforce, as part of its biggest cost cuts since the 2008 financial crisis. Goldman also review reported by the Financial Times.

Earning $35 million in 2021, Solomon has become the CEO of a major bank alongside Morgan Stanley boss James Gorman. In 2022, Gorman’s reward will be cut 10% to $31.5 million.

Jamie Dimon, CEO of JPMorgan Chase paid $34.5 million in 2022 remained unchanged from the previous year, and Wells Fargo CEO Charlie Scharf’s salary remained flat at $24.5 million.

In response to the harsh environment, Goldman cut Goldman’s senior partner rank bonus pool is down about 40%, according to people familiar with the matter.

Goldman’s overall spending on compensation and benefits in 2022 was $15.1 billion, down 15% year-over-year.

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