Summary
This 8-K filing from Goldman Sachs Group Inc. (GS) on January 26, 2021, details the 2020 total annual compensation for its top executives: CEO David M. Solomon, President and COO John E. Waldron, and CFO Stephen M. Scherr. The filing highlights that the compensation for these executives has been reduced compared to 2019, a decision linked to the firm's settlement of government and regulatory matters related to 1MDB. The compensation structure for 2020 emphasizes performance-based restricted stock units (PSUs) for a significant portion of the variable compensation, tying a substantial part of their pay to ongoing performance metrics and institutional goals. Despite the compensation reductions, the firm's strong financial performance in 2020, including record net revenues, is also noted as a factor considered by the Compensation Committee.
Key Highlights
- 12020 total annual compensation for CEO David M. Solomon was $17.5 million, a decrease from $27.5 million in 2019.
- 22020 total annual compensation for President & COO John E. Waldron was $18.5 million, down from $24.5 million in 2019.
- 32020 total annual compensation for CFO Stephen M. Scherr was $15.5 million, reduced from $22.5 million in 2019.
- 4A significant portion of the variable compensation for these executives was awarded as Performance-Based Restricted Stock Units (PSUs), with 70% for Mr. Solomon and 60% for Messrs. Waldron and Scherr.
- 5The compensation reductions were explicitly linked to the firm's settlement of regulatory matters concerning 1MDB, despite the executives not being involved in illicit activity at the time.
- 6The Compensation Committee considered the firm's strong 2020 financial performance, including record net revenues of $44.6 billion, and strategic goal execution in determining compensation.
- 7Base salaries for all three executives remained unchanged from 2019.