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Goldman Sachs cut CEO David Solomon’s pay by 30% in 2022. He made only $25 million.

david solomon

Reuters / Shannon Stapleton

  • Goldman Sachs CEO David Solomon took a salary cut in 2022, making just $25 million in compensation.
  • His performance-based pay fell by about 30% from $35 million in 2021.
  • Solomon’s annual base salary is $2 million, and he made $23 million in annual variable compensation.

Goldman Sachs cut CEO David Solomon’s pay by about 30% in 2022 to $25 million, compared to $35 million in 2021.

Solomon’s annual base salary is $2 million, which remains unchanged year-over-year, and he made $23 million in annual variable compensation last year, according to a Securities and Exchange Commission filing.

Seventy percent of his annual variable compensation, or $16.1 million, was in performance-based restricted stock units, or “PSUs,” which are tied to his performance metrics. The rest of his annual variable compensation is paid in cash.

The bank’s Compensation Committee determined Solomon’s salary for 2022 from Goldman’s Performance Assessment Framework, which is made up of financial performance metrics and other non-financial components like risk management and people strategy, the filing said. 

Goldman did not have a good year in 2022, laying off 6.5% of its global workforce — its worst round of layoffs in a decade. With a decline in mergers and acquisitions and the IPO market, two places that drive revenue for Goldman, the bank had to lay off employees in its investment-banking division.

It also reported losing over $3 billion since 2020 in its consumer lending unit that Solomon had championed. Solomon eventually announced that the bank would undergo a restructuring to address the struggling division.

Goldman’s net earnings fell by about 48% to $11.3 billion in 2022, from $21.6 billion in 2021, according to the filing.

Among some of his notable peers, Solomon’s salary for 2022 is the lowest. JPMorgan CEO Jamie Dimon kept his $34.5 million salary, while Morgan Stanley CEO James Gorman took home $31.5 million, a 10% drop from the previous year.

Read the original article on Business Insider