Goldman Sachs CEO David Solomon received the birthday present of a lifetime on Friday, as Goldman Sachs announced he had scraped together last year's wallet-busting $39 million salary.
Mr. Solomon, who turned 63 on Friday, received a 26% raise from what he received in 2023, earning him a base salary of $2 million and a cash bonus of $8.3 million, with the rest paid in stock options.
Goldman also said in a regulatory filing that he would receive an $80 million severance package if he stayed with the bank for five more years.
It's unclear how Mr. Solomon will celebrate both milestones, but he plans to head to Washington, D.C., this weekend for a series of events ahead of President Donald Trump's inauguration on Monday.
The Wall Street giant made the disclosure two days after its full-year profit soared due to a resurgence in M&A activity and growing optimism about the incoming administration's economic policies.
The retention bonus means Mr Solomon wants to remain in the top job until the end of the decade, increasing his control over the bank.
His potential successor, president and chief operating officer John Waldron, 55, would earn the same amount if he remains at Goldman until 2030.
Mr. Waldron, who has held the position since 2018 and previously served as co-head of investment banking at 200 West Street, is widely seen as Mr. Solomon's closest confidant.
The decision was approved by the financial giant's compensation committee and came after Waldron briefly discussed Mark Rowan joining Apollo Global Management. According to a report in the Wall Street Journal last month.
The board's move is seen as an attempt to ensure that Waldron remains with the bank, which he joined in 2000. The announcement came 24 hours after rank-and-file Goldman employees were informed of their 2024 bonus amounts.
The amount of each bonus was not disclosed.
“We are experiencing strong performance and our board is determined to maintain our momentum, ensure stability and maintain a solid succession plan,” said Tony Flatt, a Goldman Sachs spokesperson. Ta.
However, Wells Fargo analyst Mike Mayo acknowledged in a note to clients that the pair had led “strong revenue (and profit) growth,” but said their high pay meant “other companies… “This could alienate senior executives and employees,” the company warned. ”
“We continue to question these awards and the anticipated returns to shareholders, which in our view are low,” the memo said.
Goldman's stock has soared nearly 50% over the past year and is up 174% since Mr. Solomon took over from his longtime predecessor, Lloyd Blankfein, in 2018.
Shares rose 1.7% to $624.43 in Friday morning trading.
Mr. Solomon has spent the past two years refocusing the bank's efforts on traditional investment banking after racking up billions of dollars in losses at consumer banking unit Marcus.
His reign was also peppered with negative headlines about his side gig as a DJ, performing under the house music moniker D-Sol, and his frequent use of corporate aircraft.
But the latest financial results appear to have eased investors' concerns, as Mr. Solomon is eyeing another five years at the helm of the U.S. financial giant.
“I have a great job and I will continue to be CEO for as long as the board desires,” he told a Reuters conference in New York last month.
