Goldman Sachs CEO David Solomon will receive a 24% salary increase and receive $31 million in compensation in 2023, even as the Wall Street giant reports its worst annual profit in four years. won a dollar.
Mr. Solomon, who strengthened his power by gaining board support amid succession negotiations, will receive a base salary of $2 million, unchanged from last year, with $8.7 million in cash and $20.3 million based on performance, regulators said. I received a stock bonus. The filing by Goldman on Friday.
His total payout will be $25 million in 2022, even as Goldman suffered a slowdown in investment banking that led to thousands of layoffs and the firm’s net income fell 24% last year. There was a sharp increase from
The bank also had to post huge losses due to its ill-fated foray into retail banking.
Nevertheless, Mr. Solomon’s 2023 salary increase was higher than that of his major rivals on Wall Street, but that year’s windfall led Mr. Solomon to become CEO of Morgan Stanley. Jamie Dimon and outgoing Morgan Stanley president James Gorman.
Mr. Dimon earned $36 million last year, a 4.3% increase from 2022, while Mr. Gorman, who resigned in December, earned $37 million, a 17% increase.
A Goldman Sachs spokesperson said: “The board is grateful for David’s leadership in guiding the company, especially as we make difficult decisions to focus, execute our strategy quickly, and continue to deliver results for our shareholders.” ”, he told the Post.
Goldman stock fell slightly on Friday, closing down 0.20% at $384.
Solomon received negative headlines, including complaints from members of the public who were irritated by his management style and incompetence as a DJ.
The bank reported net income of $8.5 billion in 2023, the lowest level since 2019, a year after Mr. Solomon took over from Mr. Lloyd Blankfein.
Goldman also reported a return on equity, a key measure of profitability, of 7.5%, well below the bank’s target of 14% to 16%.
Much of that was due to Goldman’s exit from loss-making fintech startup GreenSky, which it sold to a consortium of investors led by private equity firm Sixth Street.
In an SEC filing, Goldman’s board praised Mr. Solomon’s “decisive leadership in recognizing the need to clarify and simplify the company’s future strategy.”
Solomon is also credited with having a “unwavering focus on customer centricity” as well as a “commitment to company culture.”
The board hinted at the sale of GreenSky, saying it was “to sharpen our strategic focus and rapidly execute a series of actions that will strengthen the company’s platform for 2024 and beyond.”
However, the fourth quarter’s earnings provided reassurance to the bank. Goldman’s year-over-year profit rose 51% to $2.01 billion, and revenue rose 7% to $11.32 billion, beating analysts’ expectations of $10.8 billion.
Prior to the fourth quarter, Goldman reported eight consecutive quarters of declining profits.
The Bank of New York saw some improvement in its trading and investment management divisions, but revenue in its key investment banking and advisory divisions declined.
High funding costs led many companies to refrain from making large deals in 2023, meaning Goldman and other investment banks had fewer deals to put together.
The biggest factor driving Goldman’s results was the bank’s $838 million return on investments in other companies, which is on top of the market’s strong performance over the past three months of 2023. It reflects.
However, Goldman struggled throughout the year.
Investment banking fees were down 16% from 2022, while trading in commodities, currencies and bonds was down 18%.
Goldman announced last year that it would wind down Marcus’ consumer banking division, and there are reports that it wants to sell its credit card division.
The bank cut 7% of its workforce last year, but the amount it set aside for compensation and benefits this year increased by just 2%.
with post wire
