Shareholders Approve Goldman Sachs CEO David Solomon’s Pay Package

Shareholders have approved the pay package of Goldman Sachs (GS) CEO David Solomon, including a controversial $80 million U.S. retention bonus.

The approval comes despite pushback from several prominent investor advisory firms that claimed bonuses awarded to Solomon and John Waldron, the firm’s president, are excessive.

The Wall Street investment bank said at its annual meeting that 66% of shareholders voted to approve the executive compensation package.

While the pay package has been approved, support was down from the previous year when 86% of Goldman Sachs’ shareholders voted to approve the firm’s executive compensation.

Controversy erupted over a pair of $80 million U.S. retention bonuses paid to Solomon and Waldron, who is a contender to become the bank’s next chief executive officer (CEO).

Two influential shareholder advisory groups urged shareholders to vote against the bonuses for Solomon and Waldron.

Institutional Shareholder Services and Glass Lewis each published reports critical of the bonuses, saying they are not in the interest of the investment bank or its shareholders.

The $80 million U.S. bonuses are being paid in the form of restricted stock units, a form of compensation that employees earn over time.

The bonuses are on top of Solomon and Waldron’s annual pay, which the firm said was $39 million U.S. and $38 million U.S., respectively, in 2024.

The outcome of the vote on pay was being closely watched on Wall Street as it sends a signal to firms on whether shareholders approve or disapprove of their compensation packages.

Goldman Sachs’ stock has risen more than 125% since Solomon took the bank’s helm in 2018. The investment bank’s share price is currently at $529.31 U.S. per share.