News: Goldman Sachs cuts CEO David Solomon's pay by 29% to $25 million

Leadership

Goldman Sachs cuts CEO David Solomon's pay by 29% to $25 million

The cut was the largest so far among the CEOs of the biggest U.S. banks, whose firms suffered from a dealmaking drought after a rollicking 2021.
Goldman Sachs cuts CEO David Solomon's pay by 29% to $25 million

Goldman Sachs Chief Executive Officer David Solomon has joined his most high-profile peer Apple CEO Team Cook and several other Google top officials to receive a pay cut as the reputed firm slashed his compensation by 29% to $25 million for 2022.

The cut was the largest so far among the CEOs of the biggest U.S. banks, whose firms suffered from a dealmaking drought after a rollicking 2021.

According to the bank filing, Solomon's pay comprises a $2 million base salary, $6.9 million cash bonus, and $16.1 million in restricted stock.

Solomon was paid $35 million for 2021.

The bank's compensation committee cited the "challenging operating environment" as a factor in deciding Solomon's pay, according to a filing on Friday. 

It, however, made a mention of his "strong individual performance and effective leadership". 

Morgan Stanley CEO James Gorman's compensation was reduced 10% to $31.5 million for 2022. At JPMorgan Chase & Co, Jamie Dimon's pay held steady at $34.5 million for 2022.

Last year, influential proxy advisory firm Glass Lewis urged shareholders to vote against pay packages that included one-off stock grants for Solomon and John Waldron, the company's president. Their compensation was later approved by investor.

Barely days ago, Google CEO Sundar Pichai surprised everyone by announcing pay cuts for executives of the search engine.  Pichai, with his statement coming in a meeting on Monday to address the ‘largest’ round of layoffs in the tech giant's history, said all roles above the Senior Vice President level will witness ‘very significant' reduction in their annual bonus.

For senior roles, the compensation is linked to company performance, he added.

Pichai's announcement of salary reduction for senior executives, meanwhile, comes days after an announcement by his Apple counterpart, Tim Cook, that Cook will take a 40% lower compensation amid shareholder pressure. 

Around the same time, JPMorgan Chase said it is doing away with the ‘special award’ component of CEO Jamie Dimon's salary.

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Topics: Leadership, Entrepreneurship

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