8-KOther Events

GOLDMAN SACHS GROUP INC 8-K Report, Corporate Update (Jan 27, 2023)

Filed January 27, 2023For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

This 8-K filing from Goldman Sachs Group Inc. (GS) announces the 2022 total annual compensation for its Chairman and CEO, David Solomon. Mr. Solomon's 2022 compensation is set at $25 million, a decrease from the $35 million awarded in 2021. The compensation package includes a base salary of $2 million and $23 million in variable compensation, with a significant portion, 70% ($16.1 million), being performance-based restricted stock units (PSUs) tied to ongoing performance metrics. The remaining variable compensation will be paid in cash. The Compensation Committee's decision was guided by the firm's Performance Assessment Framework, encompassing financial metrics, client orientation, risk management, and people strategy. This decision considers the firm's 2022 performance against its own historical results and peer performance, acknowledging a challenging operating environment. The filing highlights that despite a less record-breaking year compared to 2021, Goldman Sachs achieved its second-highest full-year net revenues of $47.4 billion and net earnings of $11.3 billion in 2022, along with strong diluted EPS and return on equity.

Key Highlights

  • 1David Solomon's 2022 total annual compensation is $25 million, a reduction from $35 million in 2021.
  • 270% ($16.1 million) of Mr. Solomon's variable compensation is in the form of performance-based restricted stock units (PSUs).
  • 3100% of Mr. Solomon's equity-based compensation is tied to ongoing performance metrics.
  • 4The Compensation Committee considered the firm's 2022 financial performance, peer results, and strategic evolution in determining compensation.
  • 5Goldman Sachs reported its second-highest full-year net revenues of $47.4 billion for 2022.
  • 6The firm achieved net earnings of $11.3 billion and diluted EPS of $30.06 for 2022.
  • 7Return on average common shareholders' equity for 2022 was 10.2%.

Frequently Asked Questions

The Compensation Committee reduced Mr. Solomon's compensation from $35 million in 2021 to $25 million in 2022, considering the firm's 2022 performance both on an absolute basis and relative to peer results, as well as in comparison to the record performance in 2021. The challenging operating environment in 2022 was also a factor.

Mr. Solomon's total 2022 compensation of $25 million consists of a $2 million base salary and $23 million in annual variable compensation. Of the variable compensation, $16.1 million (70%) is in performance-based restricted stock units (PSUs) tied to ongoing performance metrics, and the remainder is paid in cash.

Despite a challenging operating environment and a decrease from record highs in 2021, Goldman Sachs reported its second-highest full-year net revenues of $47.4 billion and its second-highest diluted earnings per common share of $30.06 for 2022. Net earnings were $11.3 billion, and return on average common shareholders' equity was 10.2%.

The Compensation Committee was guided by the firm's Performance Assessment Framework, which includes financial performance metrics and non-financial factors such as client orientation, risk management, and people strategy. They also considered the firm's 2022 performance against historical and peer results, its strategic evolution, Mr. Solomon's individual performance and leadership, and the challenging economic conditions.