Goldman Sachs may pay top executives up to $500 million in bonuses — The Guardian

In the United States, 20 top executives at Goldman Sachs may divide up to $500 million in bonuses among themselves, which would become one of the largest such payouts in the bank’s history. Chief Executive David Solomon may receive around $100 million in Goldman Sachs shares, The Guardian reports.

Solomon’s expected remuneration is more than twice his record annual compensation package of $47 million, received last year. The final amount of the payouts is expected to be confirmed later this month.

Remuneration depends on the bank’s shares

The bonus pool is the result of a long-term investment plan that Goldman Sachs developed in 2021. Its size depends on the growth in the bank’s share price over the past five years, as well as the performance of Goldman Sachs securities compared with competitors such as JP Morgan and Bank of America.

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Over this period, Goldman Sachs shares have risen by approximately 146%, while since Solomon began serving as chief executive, their value has increased by approximately 300%.

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The bank’s president, John Waldron, who is widely considered Solomon’s likely successor, may also be eligible for a payout, as may Ashok Varadhan and Dan Dees, co-heads of the global banking and markets division. Goldman Sachs said its board of directors created these awards to link compensation to stringent performance metrics, ensure leadership succession, and retain key employees in a competitive market.

The news of the possible payouts emerged ahead of Goldman Sachs’ publication of its third-quarter financial results, scheduled for October 13. Bloomberg was the first to report on the bonus pool.