After Huge Layoffs, Goldman Sachs Slashes Salary Of CEO David Solomon’s By Nearly 30 %; Here Is How Much He Earned

Goldman Sach’s CEO, David Solomon is no more one of the highest paid banking CEO, he ceded his title to Jamie Dimon of JP Morgan Chase after his massive salary cut.

Delhi: After a massive round of layoff, the Goldman Sachs has slashed the salary of its Chief Executive Officer  (CEO), David Solomon by almost 30 per cent, reported the New York Times. This salary cut comes in the view of tumbling profits at the firm and missteps that have weighed on the elite Wall Street bank’s profits and performance.

Solomon took home USD 25 million last year, the bank said in a filing Friday, down from USD 35 million a year earlier. Although that paycheck was still hefty compensation by most standards, Solomon ceded his title as the highest-paid bank chief executive to Jamie Dimon of JP Morgan Chase whose pay for 2022 was USD 35 million, the newspaper reported.

Of all the Wall Street Banks, the compensation of top executives is subjective to company’s performance and hence often change year to year,

According to a report by Moneycontrol, ” 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. 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.”

The bank has admitted to billions in losses from its experiment in consumer banking, and is retrenching from big plans to build checking accounts and other products for modest borrowers, the New York Times said. Solomon’s brusque style, meanwhile, has produced grumblings inside the firm and contributed to a string of senior departures, the daily newspaper said.

This month, the firm laid off 3,200 employees, the heaviest such job cuts since the financial crisis of 2008.

Solomon’s pay cut also puts him behind Bank of America’s chief executive, Brian Moynihan, who earned USD 32 million, and James Gorman of Morgan Stanley, who earned USD 31 million, according to filings.