Goldman Executives Expected to Receive $500 Million Bonuses

Goldman Sachs is preparing more than $500 million in special stock awards for about 20 senior executives, with final amounts expected later this month. CEO David Solomon is set to receive more than $100 million. President John Waldron is also among the recipients after eligibility moved beyond the top two roles. Bloomberg reported the story on Oct. 8. The awards stem from a shareholder value creation compensation program introduced in October 2021. Payouts are tied to share-price performance and results relative to financial-sector peers over five years. Half of each award depends on the stock price reaching predetermined targets; the other half is set by comparison with six peer financial companies. Goldman's stock return over the past five years, with reinvested dividends, was about 150%. The firm outperformed all of those peers except The Bank of New York Mellon. The program was originally designed for just Solomon and Waldron, with awards totaling $50 million. After shareholder questions about limiting the chance to the two top executives, the board expanded eligibility to Management Committee members, bringing about 20 senior executives into the pool. The awards rank among some of the largest in the firm's history. Final amounts remain due later this month.