Goldman Sachs CEO Compensation in 2023 Rises to $31 Million

Goldman Sachs Group Inc. has revealed that its Chief Executive, David Solomon, received a total compensation of $31 million in 2023. However, this figure may be even higher than what is stated in the bank's proxy statement.

According to an 8-K filing with the U.S. Securities and Exchange Commission, Solomon's compensation for last year consisted of a base salary of $2 million, which has remained unchanged since 2019.

The rest of his compensation includes an "annual variable compensation" of $29 million, with 70% of it in the form of performance-based restricted stock units and the remaining amount to be paid in cash.

Goldman noted that Solomon's compensation increased by 24% from $25 million in 2022, which was previously disclosed in a late-January 2023 8-K filing.

However, in the proxy statement filed in March 2023, it was revealed that Solomon's total compensation in 2022 was actually $31.61 million. This figure included the $2 million salary, a $6.9 million bonus, and $22.4 million in "year-end awards."

Additionally, Solomon received $305,077 in "all other compensation," which encompassed benefits such as health and life insurance, a car allowance, and money for benefits and tax counseling services.

It is worth noting that although a January 2022 8-K filing stated Solomon's compensation as $35 million, the subsequent proxy filed in March reported his total compensation to be $39.55 million.

Despite these numbers, it is interesting to consider that Solomon's 2023 compensation was disclosed against the backdrop of a 12.3% rise in Goldman's stock value during that year. The Financial Select Sector SPDR ETF (XLF) also experienced a 9.9% increase, while the S&P 500 index (SPX) saw a significant rally of 24.2%.

However, Goldman did face challenges in 2023, as its net income dropped by 26.5% to $7.91 billion, and total revenue decreased by 2.3% to $47.37 billion.

In response to the bank's performance, Goldman acknowledged that its strategic actions to narrow its focus negatively impacted its financial results. Nonetheless, the Compensation Committee emphasized that senior management's decisions were crucial in reorienting the firm for a stronger platform in 2024 and beyond.