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Goldman Sachs boosted chief executive David Solomon’s pay by 26 per cent to $39mn and set up $80mn retention plans for him and president John Waldron in an effort to ensure the pair remain at the bank for the next several years.
The five-year retention package for the first time includes bonuses based on the performance of Goldman’s alternative asset funds in addition to stock and cash, in a signal that the Wall Street bank is starting to pay its top people the same way that the most profitable private equity firms do.
The stock component of the package vests based on meeting targets for Goldman’s share price and return on equity, while there is also a component tied to the bank’s funds based on their performance, a kind of pay known as “carry”.
The bank said it was “evolving compensation to enhance the firm’s ability to continue to attract and retain the best talent at a time when the competition for Goldman Sachs talent is especially fierce, including from asset managers and other non-banks”.
This is a developing story