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Goldman Sachs has increased CEO David Solomon's pay by 26 per cent to $39 million, and set out $80 million retention plans for him and boss John Waldron in a bid to ensure the pair stay at the bank for several years to come.
The five-year retention package for the first time includes bonuses based on the performance of Goldman's alternative asset funds as well as stocks and cash, a sign that the Wall Street bank is starting to pay its top employees in the same way it pays its most profitable. Private equity firms do that.
The equity component of the package is based on meeting Goldman's share price and return on equity targets, while there is also a component tied to the bank's funds based on their performance, a type of pay known as “vesting.”
The bank said it is “working to develop compensation to enhance the company’s ability to continue to attract and retain top talent at a time when competition for Goldman Sachs talent is particularly intense, including from asset managers and other non-bank institutions.”
This is a developing story
