8-KOther Events

GOLDMAN SACHS GROUP INC 8-K Report, Corporate Update (Feb 16, 2018)

Filed February 16, 2018For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group, Inc. (GS) filed an 8-K on February 15, 2018, to disclose details regarding the 2017 compensation of its Chairman and CEO, Lloyd C. Blankfein. Mr. Blankfein's total compensation for 2017 was $24 million, an increase from $22 million in 2016. This compensation comprised a $2 million base salary and $22 million in variable compensation, with 80% ($17.6 million) awarded in performance-based restricted stock units (PSUs) and the remainder in cash. The Compensation Committee cited the firm's increased revenue and pre-tax profits in 2017, despite challenges in market-making businesses, as key factors influencing this decision. The firm also highlighted continued strength in its franchise businesses, a solid financial position regarding capital and liquidity, and the announcement of a $5 billion growth plan as positive developments in 2017.

Key Highlights

  • 1CEO Lloyd C. Blankfein's total 2017 compensation was $24 million, an increase from $22 million in 2016.
  • 2The majority of Mr. Blankfein's 2017 variable compensation ($17.6 million) was in the form of performance-based restricted stock units (PSUs).
  • 3The Compensation Committee considered the firm's higher revenue and pre-tax profits in 2017 when determining compensation.
  • 4The firm noted continued strength in its franchise businesses and a solid financial position (capital and liquidity) in 2017.
  • 5Goldman Sachs announced a $5 billion growth plan in 2017.
  • 6For the year ended December 31, 2017, the firm reported net revenues of $32.07 billion and diluted EPS of $9.01.
  • 7Excluding the impact of U.S. Tax Legislation, 2017 EPS was $19.76 and ROE was 10.8%.

Frequently Asked Questions

Mr. Lloyd C. Blankfein's total compensation for 2017 was $24,000,000. This includes a base salary of $2,000,000 and $22,000,000 in annual variable compensation.

Of the $22,000,000 in annual variable compensation for 2017, $17,600,000 (80%) was granted in the form of performance-based restricted stock units (PSUs), and the remainder was in cash. The PSUs are tied 100% to ongoing performance metrics.

The Compensation Committee considered the firm's delivery of higher revenue and stronger pre-tax profits in 2017, despite challenges in market-making businesses. They also factored in the continued strength across franchise businesses, a solid financial position regarding capital and liquidity, and the announcement of a $5 billion growth plan.

For the year ended December 31, 2017, Goldman Sachs reported net revenues of $32.07 billion and diluted EPS of $9.01. Excluding the impact of the U.S. Tax Legislation, the reported EPS was $19.76 and the return on average common shareholders' equity (ROE) was 10.8%.