Goldman Sachs will reduce Chief Executive David Solomon’s compensation to $25 million in 2022, a 30% decrease from the previous year, as the bank lays off thousands of employees in response to declining revenues and failed business projects, including a push into consumer banking.
According to a public filing, Solomon’s compensation consists of a $2 million annual base salary and $23 million in variable compensation, of which $16.1 million is issued in restricted stock units and will not be payable for several years.
“As is always the case with Goldman Sachs, his compensation is aligned with the direction of compensation for the partnership, reflecting solid results in a challenging environment,” a source familiar with the situation told The Post.
After a banner year in 2021, 2022 was a disaster for Goldman: the bank’s net income fell 48% year over year to $11.3 billion, the company’s share price fell 10%, and Goldman moved away from investing in its consumer business Marcus, which has been responsible for $3.8 billion in pretax losses since its 2016 launch.
Solomon earned $35 million in 2021, when the bank saw record earnings. This year, though, Solomon is taking a considerably larger cut than his peers at competing institutions.
Jamie Dimon, CEO of JPMorgan, earned $34.5 million this year, the same amount he earned in 2021. This year, James Gorman, the CEO of Morgan Stanley, suffered a 10% decrease in his income, from $35 million in 2016 to $31.5 million in 2017.
Solomon’s remuneration this year is the lowest it has been since 2018, when he got $23 million shortly after becoming the bank’s CEO.