Goldman Sachs CEO David Solomon received $31 million in compensation for 2023, up 24 percent from the $25 million he earned in 2022, the company said in a filing Friday.
The healthy pay rise comes after the bank’s profits fell 24 percent to $8.52 billion in 2023, a year in which Goldman retreated from an ill-fated foray into consumer banking.
Still, Goldman Sachs shares gained about 12 percent in the year to end 2023, as its simplified strategy and the prospect of lower interest rates attracted investors.
Solomon’s pay in 2023 includes a base salary of $2 million, unchanged from the previous year, and a bonus of $8.7 million in cash and $20.3 million in performance-linked stock, it said. the bank.
“The Compensation Committee believes that senior management’s actions were instrumental in reorienting the company with a much stronger platform for 2024 and beyond,” Goldman disclosed in its regulatory filing, referring to the pay increase.
Goldman Sachs CEO David Solomon received $31 million in compensation for 2023, up 24 percent from the $25 million he earned in 2022.
Among his Wall Street peers, JPMorgan Chase CEO Jamie Dimon’s compensation rose 4.3 percent to $36 million in 2023, while former Morgan Stanley CEO James Gorman earned 17 percent. percent more to 37 million dollars.
Goldman’s foray into consumer banking, which lost $3 billion in three years, continued to weigh on profits last year when the company exited the business.
The Wall Street giant is better prepared for a capital markets recovery in 2024 as it refocuses on its core trading and trading businesses, executives said last month.
‘I am encouraged by the activity in the capital markets. “I’m not going to say we’re getting back to 10-year averages right away, but it’s improved materially,” CEO David Solomon said when the company announced fourth-quarter results last month.
“When I look at it overall, it feels better,” with more equity, debt and equity offerings expected this year.
Goldman’s stock trading revenue rose 26 percent in the fourth quarter.
While Goldman’s trading revenue rose, its investment banking fees fell 12 percent to $1.65 billion amid an ongoing slump in trading.
Meanwhile, Solomon abandoned his “side hustle” as a DJ following criticism that it was a distraction from his job running the investment bank.
Meanwhile, Solomon abandoned his ‘side hustle’ as a DJ following criticism that it was a distraction from his job running the investment bank.
Solomon’s last high-profile DJ performance was at Chicago’s Lollapalooza music festival in July 2022, after which he decided to suspend his performances due to unwanted media attention, people familiar with the matter told the newspaper. Financial times Last October.
The 61-year-old executive, whose compensation package at Goldman totaled $25 million last year, began DJing under the stage name ‘D-Sol’ in 2015 and founded his own record label in 2018, donating all profits to charities fighting addiction.
But according to the Financial Times, he decided to abandon the hobby after it drew criticism from disgruntled bankers within Goldman, who were angry about lower salaries and perceived strategic mistakes at the bank.
A Goldman spokesperson told the outlet: ‘This is not news. “David hasn’t publicly DJ’d at an event in over a year, which we’ve confirmed several times in the past.”