Summary
Goldman Sachs Group, Inc. (GS) announced on January 27, 2022, the 2021 annual compensation for its Chairman and CEO, David M. Solomon. Mr. Solomon's total compensation for 2021 is set at $35 million, an increase from $27.5 million in 2020 (which was adjusted downward due to the 1MDB settlement). The 2021 compensation includes a $2 million base salary and $33 million in variable compensation, with 70% ($23.1 million) structured as performance-based restricted stock units (PSUs) and the remainder in cash. The firm's Compensation Committee based these decisions on its Performance Assessment Framework, considering both financial metrics and non-financial factors such as client orientation, risk management, and people strategy. This compensation reflects the firm's record financial performance in 2021, including record net revenues of $59.34 billion, record net earnings of $21.64 billion, and a 47.5% total shareholder return. Additionally, Goldman Sachs is extending Shareholder Value Creation Awards, previously granted to Messrs. Solomon and John E. Waldron, to its broader Management Committee to align incentives, promote leadership continuity, and enhance talent retention.
Key Highlights
- 1David M. Solomon's total 2021 annual compensation is $35 million, up from $27.5 million in 2020.
- 2A significant portion (70% or $23.1 million) of Mr. Solomon's variable compensation is in the form of performance-based restricted stock units (PSUs).
- 3The Compensation Committee's decisions were guided by the firm's Performance Assessment Framework, incorporating financial and non-financial performance factors.
- 4Goldman Sachs achieved record financial results in 2021, including record net revenues ($59.34 billion) and net earnings ($21.64 billion).
- 5The firm reported a strong return on average common shareholders' equity of 23.0% and a total shareholder return (TSR) of 47.5% for 2021.
- 6Shareholder Value Creation Awards, previously granted to senior executives, will be extended to the broader Management Committee.
- 7These awards aim to align compensation with performance, ensure leadership continuity, and improve retention across senior leadership.