Summary
Goldman Sachs Group, Inc. (GS) has filed an 8-K report to disclose the 2023 total annual compensation for its Chairman and CEO, David Solomon. The Board of Directors, following the Compensation Committee's recommendation, has set Mr. Solomon's 2023 compensation at $31 million, an increase from $25 million in 2022. This total includes a base salary of $2 million and $29 million in variable compensation, with a significant portion, 70% ($20.3 million), delivered as performance-based restricted stock units (PSUs). This structure emphasizes long-term alignment with firm performance metrics. The Compensation Committee's decision was guided by an Assessment Framework considering financial performance, strategic priorities, client orientation, risk management, and people strategy. The committee cited Mr. Solomon's leadership in clarifying and simplifying the firm's strategy, executing actions to narrow its focus, and strengthening core franchises. Despite these strategic actions negatively impacting short-term performance and overall financial results (including a reported net revenue of $46.25 billion and net earnings of $8.52 billion), the committee viewed them as critical for building a stronger platform for the future. The report also highlights that selected items and the FDIC special assessment fee reduced 2023 net earnings by $2.8 billion.
Key Highlights
- 1David Solomon's 2023 total annual compensation set at $31 million, an increase from $25 million in 2022.
- 270% ($20.3 million) of the variable compensation is structured as performance-based restricted stock units (PSUs), linking pay directly to ongoing performance metrics.
- 3The Compensation Committee cited Mr. Solomon's decisive leadership in strategic clarification and simplification as a key factor in the compensation decision.
- 4The firm's strategic actions to narrow focus and strengthen its platform were acknowledged, even though they impacted short-term performance.
- 5Full-year 2023 financial results reported include net revenues of $46.25 billion, net earnings of $8.52 billion, and diluted EPS of $22.87.
- 6Strategic actions and the FDIC special assessment fee reduced 2023 net earnings by $2.8 billion, impacting EPS by $8.04 and ROE by 2.6 percentage points.