Goldman Sachs' most senior executives are in line to receive more than $500mn in special bonuses from a five-year incentive plan, one of the biggest payouts of its kind in the Wall Street bank's history. The lender is preparing to hand out equity awards to a group of its most senior leaders that would exceed $500mn at Goldman's current share price, according to a person familiar with the matter.
The payout is part of a long-term incentive scheme the bank disclosed in 2021. The final value of the bonus pool will be determined by the bank's stock market performance relative to peers at the end of October, meaning it could still change, another person said. The package, first reported by Bloomberg, comes after Goldman's share price outperformed most of its Wall Street rivals over the past five years.
Chief executive David Solomon is expected to receive the largest chunk of the bonus pool, taking home about $100mn in share-based awards. John Waldron, Goldman's president and chief operating officer and widely seen as the heir apparent to Solomon, is also among the beneficiaries, along with other members of the management committee from 2021 who are still with the bank. The pair have led the investment bank since 2018 and were each granted five-year retention bonuses worth $80mn at the start of 2025.
Solomon was paid $47mn last year, more than a fifth higher than the previous year and his highest remuneration since he took the helm. The first half of his tenure was marred by a loss-making expansion into retail banking, which drew fierce criticism of his leadership. After billions of dollars in losses, Goldman largely exited the consumer push and has since focused on investment banking, trading and money management. The bank's shares are up about 180 per cent over the past three years.
Goldman said: "The board created these awards to achieve three principal objectives: align compensation with rigorous performance thresholds, ensure leadership continuity and enhance retention of our top talent in an increasingly competitive market."
Source: Financial Times Companies · Summarized by HeadlinesBriefing