Goldman Sachs Slashes CEO Solomon's Pay About 30%

Goldman Sachs Group Inc. cut Chief Executive Officer David Solomon’s compensation by about 30% to $25 million for 2022, a year in which the share price and profit tumbled and the firm retreated from a highly public effort to create a consumer bank.

The package includes a $2 million base salary and $23 million in variable compensation, with $16.1 million of that in the form of restricted stock units, according to a filing Friday.

The firm’s compensation committee considered factors including Goldman’s performance and how it did relative to its main rivals in determining Solomon’s pay, according to the filing.

“The committee also took into account the firm’s continued progress in its strategic evolution as well as Mr. Solomon’s strong individual performance and effective leadership,” it said. “These factors were considered in the context of a challenging operating environment.”

The investment-banking giant poured billions of dollars into its consumer effort, dubbed Marcus, only to suffer $3.8 billion in pretax losses over the past three years. Solomon has conceded that the company tried to push too quickly into the sector.

Goldman embarked on one of its biggest rounds of job cuts ever this year, with a plan to eliminate about 3,200 jobs as it sought to keep a lid on costs.