Goldman Sachs slashes CEO Solomon's pay 29% to $25 million

By Lananh Nguyen

NEW YORK (Reuters) -Goldman Sachs Group Inc. slashed compensation for its Chief Executive Officer David Solomon by 29% to $25 million for 2022, the bank said in a filing Friday.

Solomon's pay comprises a $2 million base salary, $6.9 million cash bonus and $16.1 million in restricted stock. He was paid $35 million for 2021.

The bank's compensation committee cited the "challenging operating environment" as a factor in deciding Solomon's pay, according to the filing. It also noted his "strong individual performance and effective leadership." The cut was the largest so far among the CEOs of the biggest U.S. banks, whose firms suffered from a dealmaking drought after a blockbuster 2021.

Morgan Stanley CEO James Gorman's compensation was reduced 10% to $31.5 million for 2022. At JPMorgan Chase & Co, Jamie Dimon's pay held steady at $34.5 million for 2022.

Goldman's fourth-quarter profit slumped 66% to $1.33 billion as investment banking slumped and its consumer business lost money. Shares tumbled more than 6% when the bank reported earnings Jan. 17.

Solomon sat for an interview with Reuters in Davos, Switzerland, last week in which he highlighted the firm's hits -- and downplayed its misses. But skeptical shareholders want to know more about the Wall Street giant's plans.

"Good companies should invest and innovate and try new things. And by the way, when you do, you're not going to always get it right," Solomon said.

Last year, influential proxy advisory firm Glass Lewis urged shareholders to vote against pay packages that included one-off stock grants for Solomon and John Waldron, the company's president. Their compensation was later approved by investors.

(Reporting by Lananh NguyenEditing by Nick Zieminski)