Having a millionaire salary is the dream of any worker; however, for Goldman Sachs CEO David Solomon, earn $25 million a year, after a 30% cut in his salaryis the way in which the investment and securities bank found to punish him for his misstep in 2022.
According to Goldman Sachs, Solomon’s salary was cut in 2022, as the global financial group is going through a difficult time, in a more than uncertain scenario in the economy of the United States and the world.
With the cut, the CEO of Goldman Sachs earned in 2022 the not inconsiderable amount of $25 million dollars; Nevertheless, it was less than the $35 million he received in 2021.
The information about Solomon’s salary cut became public when Goldman Sachs announced thousands of layoffs as part of a strategy of adjustments in the financial corporation.
According to a Bloomberg report, Goldman Sachs began with massive layoffs from the second week of January, which will affect at least 4,000 employeesequivalent to 8% of its workforce.
The notice of the layoffs was signed by the CEO of the company, as has happened in other companies mainly in the technology sector, such as Google, which laid off 12,000 of its workers.
With the adjustment, Solomon now earns less than his peers at JPMorgan, whose CEO Jamie Dimon earned a salary of $34.5 million, while Morgan Stanley CEO James Gorman took $31.5 million.
The Goldman Sachs CEO’s salary is not fully integrated by his compensation as CEO of the securities and investment bank.
In reality, Solomon’s annual base salary has been flat for the past year; this means that his salary continued to be $2 million dollars a year.
However, annual variable compensation earnings were $23 million, according to reports from the US Securities and Exchange Commission.
Of this total, 70% corresponds to an annual variable compensation of $16.1 million who are part of restricted stock units that are contingent on Solomon’s performance, also known as “PSUs”.
The remainder of Solomon’s annual variable compensation is paid in cashaccording to federal reports.
To measure the salary of the CEO Goldman Sachs, the Compensation Committee of the financial corporation considers a tool known as the Performance Evaluation Framework.
In this, the Committee measures the financial performance of the company and other components such as the risk management and people strategy.
2022 was not a good year for Solomon, as he announced the worst wave of layoffs in decades, plus mergers and acquisitions fell; they reported losses of more than $3 billion since 2020 in your consumer loan unit.
In addition, Goldman Sachs reported that its net earnings fell about 48% to $11.3 billion in 2022, from the $21.6 billion it reported in 2021.
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Source: La Opinion