Goldman Sachs (GS) CEO David Solomon has been awarded an $80 million U.S. stock bonus to remain at the helm of the Wall Street investment bank for another five years.
John Waldron, Goldman’s chief operating officer (COO), who is viewed as a successor to Solomon, was also awarded an $80 million U.S. retention bonus to remain with the bank.
The decision to keep Solomon as Goldman Sachs CEO is a surprise given his tumultuous leadership of the firm since 2018.
Solomon, age 63, has been criticized for leading Goldman Sachs through a failed push into consumer banking.
Solomon’s aggressive personal style and his hobby as a disc jockey (DJ) have also been criticized in the media and banking circles.
However, the fortunes of both Goldman Sachs and Solomon turned around over the past year amid a booming stock market that led to strong financial results and a 62% rise in the bank’s stock.
Goldman’s share price is now up nearly 175% since Solomon took the reigns seven years ago.
The $80 million U.S. bonus being paid to Solomon vests in five years, said Goldman Sachs in a news release. Solomon’s base salary in 2024 was $39 million U.S.
Keeping both him and potential successor John Waldron around helps to alleviate succession drama at the investment firm, say analysts.
Several other U.S. banks are grappling with succession issues as several prominent Wall Street CEOs prepare to retire, including Jamie Dimon at JPMorgan Chase (JPM) and Brian Moynihan at Bank of America (BAC).
The stock of Goldman Sachs is currently trading at $625.94 U.S. per share.
