Goldman CEO gets big pay boost, and $80 million bonus for another five years at helm

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By Saeed Azhar

NEW YORK (Reuters) -Goldman Sachs CEO David Solomon was awarded an $80 million stock bonus to stay at the helm for another five years, a stark turnaround for a leader whose survival was questioned after the firm's ill-fated foray into consumer banking.

John Waldron, Goldman's president and chief operating officer, and who is widely seen as a successor to Solomon, was also awarded a retention bonus of $80 million in restricted stock, the bank said in a regulatory filing on Friday.

The bonuses, which vest in five years, are an effort by Goldman's board to retain Solomon and Waldron as a senior leadership team, the company said in the filing.

Goldman also reported that Solomon's compensation for 2024 rose by 26% to $39 million.

CEO succession is in focus across Wall Street. From Jamie Dimon at JPMorgan Chase to Brian Moynihan at Bank of America , investors are focused on the long tenures of executives running the largest U.S. banks.

The latest vote of confidence for Solomon, 63, comes after a turbulent period during which investment banking activity declined and Goldman's consumer business lost money, prompting criticism of his leadership and speculation two years ago that his job was at risk. Solomon, 63, has faced off doubters as the bank's stock rallied, markets rebounded and he slimmed down Goldman's retail operations.

Goldman Sachs shares rose almost 2% on Friday afternoon.

The bank's share price jumped 48% in the last year, and is up 174% since Solomon took over in 2018.

"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," Goldman Sachs spokesperson Tony Fratto said.

"The board is also evolving compensation to enhance the firm’s ability to continue to attract and retain the best talent at a time when the competition for Goldman Sachs talent is especially fierce, including from asset managers and other non-banks," he added.

Goldman Sachs beat Wall Street estimates and earned its biggest quarterly profit in more than three years as its investment bankers brought in more deal fees, while its traders benefited from active markets. Net income climbed to $4.11 billion in the fourth quarter, the bank reported on Wednesday.Solomon told the Reuters Next conference in December that he will lead the bank as long as the board wants him to remain.

Solomon's compensation rose from $31 million in 2023. His 2024 compensation included a $2 million base salary and $8.3 million in cash bonus, with the remainder in stock and a new type of incentive award.