Goldman Sachs raises CEO David Solomon’s pay 24% despite weaker profits
![David Solomon, Goldman Sachs’ chief executive](https://cdn.statically.io/img/www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F88fec2c5-3264-466d-89a3-66f14c60fd75.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
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Goldman Sachs paid chief executive David Solomon $31mn for 2023, up 24 per cent annually despite the Wall Street investment bank reporting its lowest profits in four years.
Last year was the most challenging of Solomon’s five-year tenure leading Goldman. He faced a string of critical news articles about his leadership style, while the bank also cut thousands of jobs and suffered from a slowdown in investment banking activity.
But the board rewarded Solomon for paring back a lossmaking push into retail banking, re-emphasising Goldman’s strategy around its core investment banking and trading business and expanding in asset and wealth management.
The $31mn in pay for Solomon is made up of $2mn in base salary and a $29mn bonus, the bulk of which is paid in performance-based stock, according to a securities filing on Friday. His remuneration was up from $25mn in 2022, making 2023 his second-most lucrative year running Goldman behind the $35mn he earned in 2021.
Solomon’s pay rose more than overall expenses on remuneration at Goldman, which were up only 2 per cent last year. The bank’s headcount fell by 3,200 employees in 2023 to just over 45,000 and average pay expense per employee was up almost 10 per cent.
![Column chart of Pay in $mn showing Goldman Sachs CEO David Solomon's pay rises to $31mn for 2023](https://cdn.statically.io/img/www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Ffa380520-cce0-11ee-b1b5-c19eb1e5d280-standard.png?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
Rivals JPMorgan Chase and Morgan Stanley also raised their chief executives’ pay for 2023. JPMorgan’s Jamie Dimon, whose bank reported record profits for 2023, had his pay rise about 4 per cent to $36mn, while Morgan Stanley’s James Gorman, who stepped down as CEO at the start of 2024, was paid $37mn, up 17.5 per cent. Bank of America cut the pay of its top executive Brian Moynihan by 3 per cent, or $1mn, to $29mn.
Goldman took several one-off hits to profits last year — such as scaling back its once-ballyhooed consumer business — in what analysts characterised as a “kitchen sink” approach to clear the decks for 2024.
“While these strategic actions negatively impacted short-term performance, the compensation committee believes that the actions of senior management were critical to reorienting the firm with a much stronger platform for 2024 and beyond,” Goldman wrote in the filing announcing Solomon’s pay.
Net income at the bank fell 24 per cent in 2023 to $8.5bn, the lowest since 2019. Goldman also reported a return on equity, a key gauge of profitability, of 7.5 per cent, well short of the bank’s target of 14 per cent to 16 per cent.
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