Goldman Sachs CEO’s Pay Increases by 65 Percent, But Executives Still Want More

Annual Meeting 4/28/2022

The proxy advisors are split on whether shareholders should vote in favor of pay at Goldman Sachs where CEO David Solomon’s total compensation increased 65 percent to $39,545,072 this year. Glass Lewis has recommended that shareholders vote against, while ISS has suggested “cautionary support.”

Glass Lewis objected to the massive “one-time” Shareholder Value Creations awarded to members of the management committee, worth an estimated $30 million for CEO David Solomon and $20 million for Chief Operating Officer John Waldron. Only a portion of this potential value is included in this year’s summary compensation total. Glass Lewis pointed out that “Such awards have the potential to undermine the integrity of a company’s regular incentive plans, the link between pay and performance or both.”

There are other reasons to be concerned about compensation at Goldman Sachs as well. As the Wall Street Journal notes, “Goldman’s CEO is Paying Himself Like A Private Equity Chief.” The article details how these plans will go into effect, but the bottom line is Solomon is seeking the unlimited upside of private equity while being paid as an executive of a public company, which exposes him to less risk. It’s a sort of “heads I win, tails I don’t lose” situation.