$50M bonus to Goldman Sachs CEO and COO ‘extreme’

Goldman Sachs’ plan to pay a $30 million one-time bonus to Chief Authorities David Solomon and a $20 million bonus to Chief Working Officer John Waldron is “excessive,” proxy adviser Glass Lewis argued Friday.

The shareholder advisory company knowledgeable Goldman shareholders they should vote in opposition to the supervisor pay bundle that accommodates the one-time reward bonuses.

“We’re concerned about explicit, one-off grants to the CEO and COO,” talked about the Glass Lewis discover to shareholders that was reported by the Monetary Occasions talked about. “Such awards have the potential to undermine the integrity of a company’s widespread incentive plans, the hyperlink between pay and effectivity or every.”

Goldman has contended that its compensation will “drive long-term shareholder price creation” and “assure administration continuity over the next five-plus years.” The multi-million buck stock awards gained’t be paid out until October 2026.

Glass Lewis talked about when shareholders are requested on April 28 whether or not or to not approve the pay packages, they should say no. So-called say-on-pay votes at publicly traded companies are strictly advisory, however when a company’s shareholders vote in opposition to a pay bundle, it might be seen as a black eye.

“We contemplate that long-term incentives should encourage executives to comprehend common and sustainable progress reasonably than what might amount to comparatively momentary spikes in effectivity,” Glass Lewis talked about.

David Solomon acquired a $30 million “reward” as part of his 2021 compensation.
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Goldman Sachs didn’t immediately reply to request for comment.

At Goldman, Solomon’s complete pay consists of an annual base wage of $2 million and a variable compensation of $33 million, 70% of which is inside the kind of goal-based stock compensation or restricted stock gadgets.

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Solomon’s compensation is in line with his rivals. James Gorman, CEO at Morgan Stanley, additionally raked in the identical quantity — $35 million — for 2021. JPMorgan Chase CEO Jamie Dimon’s 2021 complete compensation clocked in at $34.5 million.

Solomon’s 2021 payday was double the $17.5 million he made in 2020 — Solomon was docked after Goldman admitted wrongdoing inside the 1MDB scandal that plundered the Malaysian sovereign wealth fund.

Within the meantime, financial institution shares have fallen sharply to this point this 12 months even after bumper outcomes on the once more of a banner yr for mergers-and-acquisitions.

That’s on account of moreover they reported sharply higher payments — largely because of the fat pay packages they’re doling out in a great labor market.