David Solomon’s pay was $25m for 2022, down from $35m in 2021, as funding financial institution’s income halve and three,200 workers laid off
Goldman Sachs has slashed its chief government’s pay packet by nearly 30% after a turbulent 12 months that resulted in one of many largest spherical of job cuts within the Wall Road lender’s historical past.
The financial institution revealed on Friday that David Solomon had been paid $25m (£20m) for 2022, down from $35m a 12 months earlier, after the financial institution revealed a 50% drop in annual income following a droop in dealmaking. Solomon’s pay included a $2m base wage and $23m in bonuses.
It takes his pay again under his rival at JP Morgan, the place the chief government Jamie Dimon’s pay held regular at $34.5m for 2022. That was regardless of the financial institution struggling a 22% drop in annual income.
Solomon, who additionally moonlights as a DJ underneath the moniker DJ D-Sol, additionally took a $10m hit to his 2020 pay packet after the financial institution was compelled to pay billions of dollars to settle a global investigation into its position within the 1MDB scandal. That also left him with pay of $17.5m that 12 months.
An individual aware of Solomon’s newest pay deal mentioned: “As is all the time distinctive to Goldman Sachs, his compensation is aligned with the path of compensation for the partnership, reflecting strong leads to a difficult atmosphere, however down from the data of 2021.”
Funding banks the world over have been grappling with a drop in demand after Russia’s invasion of Ukraine, which rattled world markets and made firms extra cautious about pursuing offers and elevating cash on the monetary markets, for worry their shares can be undervalued or they need to pay extra for debt.
The droop in demand triggered mass layoffs at Goldman Sachs, which fired about 3,200 of its 49,000 world staff this month, primarily in its funding banking division.
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Nonetheless, some specialists have famous that it's a return to a extra regular banking layoff cycle, provided that Goldman successfully froze its annual redundancy programme as dealmaking surged after the pandemic. Previous to the job cuts, Goldman’s workers headcount had grown roughly 30% since 2019.
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