Goldman Sachs offers retention bonuses to top executives, a year after their pay was cut

Goldman Sachs offers retention bonuses to top executives, a year after their pay was cut

Oct 25, 2021

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A year after Goldman Sachs cut the compensation of its top bosses over a corruption scandal, the company is now offering them multimillion-dollar retention bonuses to stay on board. Goldman Sachs said in a filing on Friday that the bank’s chief executive David M Solomon will be awarded $30 million at the end of five years if Goldman reaches its stock price targets. The bank’s president and chief operating officer John E Waldron is eligible for a $20 million bonus under the same terms. 

The payouts are handed out to ensure leadership continuity as the firm seeks to grow while competition for talent increases. A year ago, GS had announced that it would cut back $174 million in total pay from past and present executives including David M. Solomon after the bank admitted criminal wrongdoing by its Malaysian subsidiary. In 2020, Mr. Solomon’s pay was cut to $17.5 million from $27.5 million in 2019. Meanwhile, Mr. Waldron’s pay fell from $24.5 million to $18.5 million. While neither of the two was involved in or aware of the illicit activity, the company considered it an institutional failure. 

Source: The New York Times 

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