Goldman Sachs will pay CEO David Solomon $25 million for his work in 2022, the bank disclosed Friday in a Securities and Exchange Commission filing.
That’s a 28.6% drop from the $35 million Solomon made in 2021. Friday’s pay package also ensures he is no longer the highest-paid CEO at a U.S. Wall Street bank. That title — barring a big raise for Bank of America CEO Brian Moynihan or Citi’s Jane Fraser — will revert to JPMorgan Chase’s Jamie Dimon.
Dimon made $34.5 million in 2022, JPMorgan disclosed last week. He made the same amount in 2021, but Solomon and Morgan Stanley CEO James Gorman received $35 million.
Morgan Stanley cut Gorman’s pay by 10% to $31.5 million, it disclosed last week.
Solomon’s pay package comprises a $2 million base salary and $23 million in variable compensation — $16.1 million of which will be in restricted stock units.
The pay cut comes as Goldman sheds up to 3,200 employees, or about 6.5% of its workforce, and undergoes a massive realignment of its business units.
The bank’s compensation committee took into account Goldman’s financial performance both by itself and compared to peers, the bank’s “progress in its strategic evolution,” and 2022’s challenging economic backdrop, it said Friday.
Goldman’s net revenue dropped 20% in 2022, compared with the previous year, it reported last week. Days before that, the bank said its Platform Services unit, which houses Apple Card, home-improvement lender GreenSky and some business from consumer-focused Marcus, had lost $3 billion since 2020.