Goldman Sachs CEO David Solomon received an $80 million stock bonus to continue leading for another five years, a significant shift given past doubts about his tenure following the firm's unsuccessful venture into consumer banking.
John Waldron, the bank's president and chief operating officer who is viewed as a potential successor to Solomon, also received an $80 million retention bonus in restricted stock, according to a regulatory filing on Friday.
The awards, vested over five years, aim to retain Solomon and Waldron as key members of the leadership team, the bank stated in the filing.
In addition, Solomon's 2024 compensation increased by 26% to $39 million.
CEO succession is a key topic in the finance industry, with a focus on executives' lengthy tenures at major U.S. banks like JPMorgan Chase and Bank of America.
Solomon, 63, faced uncertainty amid a challenging period of declining investment banking activity and losses in the consumer business. However, under his leadership, Goldman's stock rebounded, markets improved, and retail operations were streamlined.
Goldman Sachs shares rose nearly 2% on Friday, with a 48% increase in the past year and a 174% rise since Solomon assumed the role in 2018.
Regarding the recent developments, a Goldman Sachs spokesperson noted, "The firm is delivering strong performance and the board is determined to maintain our momentum, ensure stability, and keep in place a solid succession plan."
Solomon mentioned in December his commitment to leading the bank as long as the board desires.
Solomon's 2024 compensation, including a $2 million base salary and $8.3 million cash bonus, reflects an adjustment in the firm’s compensation strategy to attract and retain top talent in a competitive environment.