Top bosses at Goldman Sachs are in line to share a bonus pot worth up to $500m (£378m) this year. This sum, which will be distributed among 20 bankers, marks one of the largest payouts in the Wall Street bank’s history.
Goldman Sachs chief executive, David Solomon, is due to take about $100m (£75.6m) of the reward, which consists of Goldman Sachs stock. This amount is more than double the $47m (£35.5m) annual pay package he received last year.
The $500m bonus pot is the result of a long-term investment plan initiated by the bank in 2021. The final sum, expected to be confirmed later this month, is tied to the increase in Goldman’s share price over the past five years and its performance relative to competitors like JP Morgan and Bank of America.
Goldman Sachs stated that the bonuses are intended to encourage bosses to remain with the bank in what it described as an “increasingly competitive market.” The bank’s president, John Waldron, along with other top executives including Ashok Varadhan and Dan Dees, are also in line for payouts.
A spokesperson for the bank said the awards were created to align compensation with performance, ensure leadership continuity, and enhance retention of top talent. The bonuses reflect a roughly 146% surge in Goldman Sachs stock over the past five years, and approximately 300% since Solomon became chief executive.