- Goldman Sachs CEO David Solomon’s 2024 compound rose 26% from a year earlier, the firm said on Friday.
- The Wall Street CEO will be paid $39 million for 2024, up from $31 million in 2023.
- He and Goldman president John Waldron will earn millions more over the next five years.
Goldman Sachs CEO David Solomon and John Waldron, his top deputy as the firm’s president and COO, will earn millions if they continue to lead the bank over the next five years, according to compensation figures released Friday.
On Friday, the bank released pay details for its top executives in a regulatory filing. He said Solomon received a roughly 26% raise over the past year, with his compensation in 2024 reaching $39 million. The bank split that into a base salary of $2 million, Goldman Equity performance stock units totaling $25.9 million, an incentive bonus of $2.78 million and $8.33 million in cash.
Solomon and Waldron each received $80 million in restricted stock units that vest over a five-year period — a sign the bank plans to hold them for at least half the next decade. The bank called them “custody RSUs,” suggesting its intention to bond with Goldman’s two top leaders.
“The retention RSUs reflect the Board’s desire to retain the current CEO and COO as a senior leadership team, to support the strong momentum they have demonstrated in executing our overall strategic priorities, to help in ensuring stability and continuity in our senior leadership over the next five years. and maintain a strong succession plan for the future of the firm,” the bank said in the regulatory filing outlining what the board agreed to pay. the leadership of the bank. the leaders.
The salary structure appears to be a vote of confidence in Solomon’s leadership, signaling an end to the narrative that emerged during the pandemic years that Solomon’s decision-making and extracurricular pursuits, such as DJing, had left him vulnerable.
Goldman’s compensation committee, which sets CEO and president pay, cited several factors to explain its decision, including “strong financial performance in 2024 and a significant year-over-year improvement as a result of strategic execution “.
This week, the firm reported total net income for 2024 of more than $53 billion, with almost $35 billion coming from its banking and markets division, in its fourth-quarter 2024 earnings results. As of January, its stock was trading at roughly $619 per share — a 64% increase over a 12-month period.
Additionally, in the regulatory filing, Goldman touted its capabilities in both its global banking and markets, as well as its asset and wealth management business lines. The former includes services such as mergers and acquisitions advisory, where Goldman regularly tops league tables, while the bank said the latter division houses a “top 5 alternatives business” and elite money management services for the ultra-wealthy. . Last year, the asset management and wealth group’s assets under supervision grew to a record $3.14 trillion, the firm said.
Beyond Solomon and Waldron’s pay, the regulatory filing also announced that the bank would adopt a carried interest program in which its top executives are also paid based on the performance of Goldman’s third-party alternatives business. The aim, the bank said, is to “attract and retain talent” at a time when the asset management community is waging a war for top professionals and has at times raided Goldman’s ranks.
Reed Alexander is a correspondent at Business Insider. He can be reached by email at ralexander@businessinsider.com or SMS/coded Signal app at 561-247-5758.
