Goldman Sachs’ chief executive David Solomon enjoyed an almost 20 per cent pay rise for his first full year in the role, making him Wall Street’s second-best paid bank boss.
Mr Solomon’s $27.5m package was detailed in regulatory filings on Friday afternoon, which also showed that the bank’s board has not taken any further action to withhold bonuses from former executives over the still-ongoing 1MDB money laundering and bribery investigations.
The 2019 figures for Mr Solomon include performance-related deferred shares currently valued at $17.85m and a cash bonus of $7.65m. The total was $4.5m higher than in 2018, partly reflecting the fact that he was only chief executive for three months of that year. His predecessor, Lloyd Blankfein, was paid $24m for his last full year in charge, 2017.
Goldman’s president, John Waldron, and chief financial officer, Stephen Scherr, who were both promoted by Mr Solomon, also enjoyed big pay bumps. Mr Waldron’s compensation rose $4.5m to $24.5m while Mr Scherr’s was up by the same amount to $18m.
Goldman’s financial performance lagged behind peers last year, partly because of provisions related to 1MDB. The Malaysian state investment fund was looted of billions of dollars in the country’s worst corruption scandal, and Goldman is in talks with the US Department of Justice over a settlement for its role in bond deals with the fund.
A year ago, Goldman said uncertainty about the fallout from the 1MDB investigation justified withholding millions of dollars of bonuses payable to Mr Blankfein, former Goldman Sachs international co-head Michael Sherwood and former vice-chairman Mike Evans.
In Friday’s filing, Goldman said that it was “not necessary” to include a similar provision for 2019. This means that the 2018 bonuses are still being withheld, pending the outcome of investigations into 1MDB, but bonuses falling due for 2019 are being paid.
JPMorgan Chase chief executive Jamie Dimon was awarded $31.5m for 2019, up 1.6 per cent year on year and putting him on course to be Wall Street’s best paid big bank boss for the fifth straight year.
Bank of America chief executive Brian Moynihan was awarded $26.5m for 2019, flat year-on-year, while Citigroup’s Mike Corbat’s $24m was also flat year-on-year.
Morgan Stanley chief executive James Gorman took a 7 per cent pay cut, to $27m, even as his bank posted record profitability.