Goldman Sachs Group Inc. disclosed Friday that Chief Executive David Solomon’s total compensation in 2023 was $31 million, but the final tally the bank puts in its proxy statement could be a lot higher.
In an 8-K filing with the U.S. Securities and Exchange Commission, Goldman
GS,
said Solomon’s compensation last year included a base salary of $2 million, which has been the same since 2019.
The rest includes “annual variable compensation” of $29 million, 70% of which is in the form of performance-based restricted stock units, with the remainder to be paid in cash.
Goldman indicated that Solomon’s compensation increased by 24% from $25 million in 2022, which was what Goldman disclosed in a late-January 2023 8-K filing.
But in Goldman’s proxy statement filed in March 2023, it was disclosed that Solomon’s total compensation in 2022 was actually $31.61 million, including the $2 million salary, a $6.9 million bonus and $22.4 million in “year-end awards.”
There was also $305,077 in “all other compensation,” which included health and life insurance benefits, a car and money for benefits and tax counseling services.
A January 2022 8-K said Solomon’s compensation was $35 million, but the proxy filed in March said his total compensation was $39.55 million.
Meanwhile, Solomon’s 2023 compensation disclosure comes after the stock rose 12.3% in 2023, while the Financial Select Sector SPDR ETF
XLF
gained 9.9% and the S&P 500 index
SPX
rallied 24.2%.
And that’s after Goldman’s 2023 net income dropped 26.5% to $7.91 billion while total revenue 2.3% to $47.37 billion.
Goldman said Friday that it recognizes 2023 financial results were hurt by the bank’s own strategic actions to narrow its focus.
“While these strategic actions negatively impacted short-term performance, the Compensation Committee believes that the actions of senior management were critical to reorienting the firm with a much stronger platform for 2024 and beyond,” Goldman stated.
