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%.