Goldman Sachs Executives to Receive More Than $500 Million in Special Performance Bonuses
One of the largest ever
CEO David Solomon set to receive more than $100 million
Payout amounts to be finalized later this month
Goldman Sachs Group is set to award a total of more than $500 million (approximately 671.7 billion won) in special compensation to about 20 senior executives. Paid in stock, the awards are expected to rank among the largest of their kind ever.
According to Bloomberg News on Oct. 8 (local time), Chief Executive Officer David Solomon is set to receive a special award worth more than $100 million. Other executives leading major business units, including President John Waldron, are also among those slated to receive special awards.
The awards are part of the "shareholder value creation compensation" program Goldman Sachs introduced in October 2021. Half of each award is determined by whether the stock price reaches specified targets. Bloomberg reported that Goldman Sachs shares have risen well above the level required for the maximum payout.
The other half is calculated by comparing Goldman Sachs' performance over five years with that of six peer financial companies. The total return on Goldman Sachs shares over the past five years, including reinvested dividends, was about 150%. Goldman Sachs is said to have outperformed all but Bank of New York Mellon.
The program was initially designed for just two people: CEO Solomon and President Waldron. The awards granted to them at the time totaled $50 million.
After shareholders questioned why only two top executives were being given the opportunity to receive special compensation, the board expanded eligibility to members of the management committee. Bloomberg reported that about 20 executives who are still with the company are set to receive awards.
There was also internal opposition when the program was introduced. Senior executives were pursuing separate compensation at a time when pressure was mounting to raise salaries for new and junior employees.
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Goldman Sachs said the program links compensation to performance, ensures management continuity, and helps retain key talent. Spokesperson Jennifer Zuccarelli said the company had delivered very strong results since the program was introduced.
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