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Goldman Sachs has raised Chief Executive David Solomon’s pay by 26 percent to $39 million and created a $80 million retention plan for him and President John Waldron to ensure the pair stay at the bank for years to come.
For the first time, the five-year retention package includes bonuses based on the performance of Goldman’s alternative asset fund in addition to stock and cash, a signal that the Wall Street bank is beginning to pay its top people in the same way that is most profitable. Private equity firms do.
The stock component of the package vests based on meeting Goldman’s share price and return on equity targets, while the bank’s funds have a component based on their performance, a type of pay known as “carry”.
The bank said it was “developing compensation to enhance the firm’s ability to attract and retain top talent at a time when competition for talent at Goldman Sachs is particularly fierce, including asset managers and other non-banks”.
This is a developing story
