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Goldman Sachs lifts CEO Solomon's pay to $35 million

Published 01/28/2022, 06:04 PM
Updated 01/28/2022, 06:55 PM
© Reuters. FILE PHOTO: David M. Solomon, Chairman and CEO of Goldman Sachs, speaks during the Milken Institute's 22nd annual Global Conference in Beverly Hills, California, U.S., April 29, 2019.  REUTERS/Mike Blake/File Photo
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(Reuters) -Goldman Sachs Chief Executive Officer David Solomon's total compensation for 2021 will be $35 million, the bank said on Friday.

That is double the $17.5 million he received for 2020. The board had then slashed $10 million from his $27.5 million pay to settle legal costs related to the bank's role in the 1Malaysia Development Bhd corruption scandal.

Solomon's total pay for 2021 includes an annual base salary of $2 million and a variable compensation of $33 million, 70% of which is in the form of goal-based stock compensation or restricted stock units.

Other major Wall Street banks have also handsomely rewarded their chief executive officers as annual profits bounced back in 2021 thanks to pandemic-related loan loss provisions that did not materialize.

Morgan Stanley (NYSE:MS) raised CEO James Gorman's annual pay to $35 million, while JPMorgan (NYSE:JPM) lifted Jamie Dimon's to $34.5 million.

© Reuters. FILE PHOTO: David M. Solomon, Chairman and CEO of Goldman Sachs, speaks during the Milken Institute's 22nd annual Global Conference in Beverly Hills, California, U.S., April 29, 2019.  REUTERS/Mike Blake/File Photo

Since taking over the reins from Lloyd Blankfein in 2018, Solomon, 60, has looked to diversify revenue, focusing more on predictable streams including consumer banking and wealth and asset management while reducing reliance on capital markets-focused businesses.

The bank reported a net income of $21.64 billion in 2021, compared with $9.46 billion a year earlier. It reported a 23% increase in fourth-quarter operating expenses, mainly due to higher compensation and benefits costs.

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