Jamie Spencer
Goldman Sachs Increases CEO Compensation and Locks in Leadership
Goldman Sachs has raised CEO David Solomon’s compensation by 26% to $39 million for 2024, according to a regulatory filing. Additionally, the firm’s board approved an $80 million stock retention bonus, signaling that Solomon is expected to remain at the helm for another five years.
Alongside Solomon, President and COO John Waldron was also awarded an $80 million restricted stock bonus, vesting in five years. Waldron is widely regarded as a potential successor to Solomon.
Wall Street’s Leadership Succession in Focus
CEO succession is a major focus across Wall Street, with investors keeping a close eye on long-tenured executives at major banks such as:
- Jamie Dimon at JPMorgan Chase.
- Brian Moynihan at Bank of America.
Goldman’s board emphasized that the bonuses aim to retain Solomon and Waldron as a senior leadership team, ensuring continuity and stability at the firm.
“The firm is delivering strong performance, and the board is determined to maintain momentum, ensure stability, and keep in place a solid succession plan,” said Goldman Sachs spokesman Tony Fratto.
Competitive Compensation to Retain Talent
Goldman Sachs faces intense competition for top financial talent, not only from rival investment banks but also from asset managers and non-bank financial firms.
“The board is evolving compensation to enhance the firm’s ability to attract and retain the best talent,” Fratto added.
Solomon’s total 2024 compensation package includes:
- $2 million base salary.
- $8.3 million cash bonus.
- Stock grants and a new incentive award.
This marks a significant increase from his $31 million compensation in 2023.
Goldman Sachs’ Strong Performance in 2024
Goldman Sachs exceeded Wall Street expectations, reporting its biggest quarterly profit in over three years. The bank’s success was driven by:
- Increased deal fees from investment banking.
- Strong trading revenue in active markets.
In Q4 2024, net income surged to $4.11 billion, reflecting a successful strategic shift back to core businesses.
Solomon’s Leadership and Strategic Shift
Since taking over as CEO in 2018, Solomon has led significant changes at Goldman Sachs. While he initially championed a consumer banking expansion, the retail business lost billions, forcing the firm to:
- Scale back consumer banking operations.
- Sell assets and take writedowns.
Goldman has now refocused on:
- Investment banking and trading (historical strengths).
- Growth in asset and wealth management.
Despite past challenges, Solomon remains committed to leading the firm.
“I’ve got a great job, and I’ll be CEO as long as the board wants me to be,” Solomon said at the Reuters Next conference in December.
What’s Next for Goldman Sachs?
With Solomon and Waldron locked in for at least five more years, Goldman Sachs is expected to continue focusing on its core businesses, while competing aggressively for top banking talent.
As Wall Street banks navigate evolving market conditions, Goldman’s strong financial performance and leadership stability could position it for further success in 2025 and beyond.
