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Goldman Sachs’ (GS) board has given CEO David Solomon a 24% pay increase in 2023, despite declining profits and stagnant trading. renewed support for Mr. Solomon after his most difficult year.
Mr. Solomon’s annual compensation was $31 million, the bank said Friday. This is not only more than the $25 million he earned in 2022, but also more than rivals Brian Moynihan and Charles Schaaf made at Bank of America (BAC) and Wells Fargo (WFC). larger than the amount.
Only JPMorgan Chase CEO Jamie Dimon (JPM) and outgoing Morgan Stanley CEO James Gorman (MS) received more awards for their performance in 2023. Citigroup (C) has not yet disclosed CEO Jane Fraser’s 2023 compensation.
The pay comes after Mr. Solomon spent much of 2023 attempting a difficult exit from consumer lending while focusing on the company’s core strengths of trading, asset management and investment banking. The increase may be a sign that the board’s support for Mr. Solomon is growing.
The Wall Street giant’s profits fell 24% as trading slowed across the industry and the company absorbed costs associated with the exit from consumer lending.
Full-year net income of $8.52 billion was Goldman’s worst performance since 2019, the first time Mr. Solomon took over for a full year. However, the company posted strong profits in the fourth quarter due to increased stock trading and asset management.
Much is in flux at Goldman as key executives depart, ultimately raising new questions about the race to succeed Solomon.
One of the people leaving unexpectedly in 2024 is Jim Esposito, co-head of Goldman’s global banking and markets division, after nearly 30 years with the company. Mr. Esposito was seen on Wall Street as one of Mr. Solomon’s possible successors.
The departure could focus attention on other potential CEO candidates, such as President John Waldron, Head of Assets and Asset Management Mark Nachman, or one of the other co-heads of investment banking and trading. There is sex.
Even Goldman’s board of directors is changing. Last month, former Goldman CFO David Binial was named lead director on the board, replacing Adebayo Ogunlesi, who resigned after selling his infrastructure investment firm to BlackRock.
The Board of Directors has awarded Mr. Solomon, who serves as Chairman of the Board, a discretionary bonus of $29 million, 70% of which is performance-based stock units. His $31 million compensation also includes a base salary of $2 million.
Goldman stock peaked at $420.73 in August 2021 at the height of the last trading boom. Since Solomon took over as CEO in October 2018, his stock has increased 72%. Year-to-date, inventory has declined slightly.
David Hollerith is a senior reporter at Yahoo Finance, covering banking, cryptocurrencies, and other financial areas.
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