Goldman Sachs Hikes CEO Compensation to $35M

The Goldman Sachs Group (GS) raised the annual compensation of its Chairman and CEO David M. Solomon to $35 million, following similar announcements made by JP Morgan Chase & Co. (JPM) and Morgan Stanley (MS).

Shares of the global investment bank closed up 1.7% at $347.01 on January 28. Its shares have lost 12.2% to date against a gain of 28.5% over the past year.

CEO Solomon Receives $35M Pay

On the recommendation of the Compensation Committee, GS finalized the 2021 annual compensation for its CEO at $35 million. The compensation consists of an annual base salary of $2 million and the remaining is variable compensation.

Out of the $33 million variable compensation, $23.1 million (70%) will be given in the form of performance-based restricted stock units and the rest in cash.

The compensation marks a 100% hike to Solomon’s 2020 annual compensation of $17.5 million, which was reduced from $27.5 million following the settlement of matters relating to 1Malaysia Development Berhad (1MDB).

2021 was an exceptional year for banks, after their bottom lines received a boost following the release of pandemic-related loan loss provisions, which are yet to be realized. For the full year fiscal 2021, GS’ earnings jumped 140% to $59.45 per share, while total net revenue grew 33% year-over-year to $59.3 billion. 

Earlier, MS lifted CEO James Gorman’s annual compensation to $35 million, and JPMorgan hiked CEO Jamie Dimon’s annual salary to $34.5 million.  

Consensus View

The Wall Street community has a Moderate Buy consensus rating on GS, which is one of the best bank stocks. This consensus is based on 9 Buys and 6 Holds. The average Goldman Sachs price target of $464.08 implies 33.7% upside potential to current levels.

Stock Investors

According to TipRanks’ Stock Investors tool, investor sentiment is currently Very Positive on Goldman Sachs, with 7% of portfolios tracked by TipRanks increasing their exposure to GS stock over the past 30 days.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Lowe’s Opens Petco Store-in-Store in Pilot Launch; Shares Rise
Google Hiring Blockchain Specialists – Report
Mastercard Exceeds Q4 Expectations; Shares Rise