Goldman Sachs had a tough year in 2022, and CEO David Solomon was “punished” for it.
The investment banking giant said in a Securities and Exchange Commission filing Friday that Solomon received $25 million (currently about 169 million yuan) in annual compensation last year. While that’s still a very large number, it’s down nearly 30 percent from the $35 million Solomon received in 2021.
Solomon’s $2 million annual salary is unchanged, but the company says his “annual variable compensation,” a mix of performance-based restricted stock and cash, is well below the 2021 level.
The reason is that Goldman Sachs has experienced stock declines and earnings declines over the past year compared with its 2021 results, and its multibillion-dollar consumer banking platform, Marcus, has posted cumulative pretax losses of $3.8 billion over the past three years. Goldman Sachs also launched one of the largest job cuts in its history this year, with plans to cut about 3,200 jobs.
Goldman Sachs is scaling back some of its exposure to general banking clients as it tries to expand beyond its traditional investment banking business, which has been losing money in its consumer-focused businesses.
