Goldman Sachs CEO David Solomon slashed his own pay by 30% - but still took ... trends now
Goldman Sachs Group slashed compensation for its Chief Executive Officer David Solomon by 29 percent to $25 million for 2022, the bank said in a filing Friday - just as the firm sacked more than 3,000 workers.
Solomon's pay comprises a $2 million base salary, $6.9 million cash bonus and $16.1 million in restricted stock. He was paid $35 million for 2021.
The bank's compensation committee cited the 'challenging operating environment' as a factor in deciding Solomon's pay, according to the filing.
It also noted his 'strong individual performance and effective leadership.'
Goldman Sachs began cutting 3,200 jobs on Wednesday as CEO David Solomon (pictured) looks to slash expenses as banks reel from a harsh 2022
Morgan Stanley CEO James Gorman's compensation, left, was reduced 10 percent to $31.5 million for 2022. At JPMorgan Chase, Jamie Dimon's pay held steady at $34.5 million for 2022
Soloman's pay cut was the largest so far among the CEOs of the biggest U.S. banks, whose firms suffered from a dealmaking drought after a blockbuster 2021.
Morgan Stanley CEO James Gorman's compensation was reduced 10 percent to $31.5 million for 2022. At JPMorgan Chase, Jamie Dimon's pay held steady at $34.5 million for 2022.
Goldman's fourth-quarter profit slumped 66% to $1.33 billion as investment banking slumped and its consumer business lost money. Shares tumbled more than 6 percent when the bank reported earnings on January 17.
Solomon sat for an interview in Davos, Switzerland, last week in which he highlighted the firm's hits - and downplayed its misses. But skeptical shareholders want to know more about the Wall Street giant's plans.
'Good companies should invest and innovate and try new things. And by the way, when you do, you're not going to always get it right,' Solomon said.
Last year, banks generated nearly $71 billion in U.S. investment banking revenue, according to Dealogic. Investment banking revenue in the United States is expected to have dropped more than 50 percent from last year
Pictured: Employees in Goldman Sachs New York office last week as the first round of layoffs began. Employees were reportedly booted in short meetings, and without bonuses
Last year, influential proxy advisory firm Glass Lewis urged shareholders to vote against pay packages that included one-off stock grants for Solomon and John Waldron, the company's president.
Their compensation was later approved by investors.
Earlier this month, Goldman Sachs began cutting 3,200 jobs, dismissing workers in their New York, London and Hong Kong offices in as little as 30 minutes.
As the mass layoffs began many employees were booted without even receiving bonuses for their work in 2022.
The employees were axed via meetings and phone calls, with their office badges