Goldman Sachs bankers bristle at CEO David Solomon’s salary ahead of annual ‘investor day’

Business

on the money

By Lydia Moynihan

February 27, 2023 | 6:18 p.m.

As Goldman Sachs prepares to hold its second Investor Day, there are complaints of the bank’s struggles under CEO David Solomon – with some bankers saying the boss’ bonus should have shrunk more than it has.

As Solomon lays out his vision for the Wall Street giant during Tuesday’s shindig, many are still chafing at their disappointing year-end payouts – and blaming their part-time CEO DJ, sources told On The Money.

“The partners have suffered a severe blow in terms of salary. They got 50% less this year partly because of David’s failed ideas,” a source told the Post on condition of anonymity. “Solomon only took a 30% cut. Why didn’t he take the same hit the partners took?

After weathering a chilling series of layoffs that claimed more than 3,200 lives last month, the company’s surviving associates are clearly frustrated with the state of their bank accounts. But some also worry they have lost credibility with junior employees, whose meager bonuses were a slap in the face after a year of 100-hour work weeks, sources added.

“Even in difficult times, leaders have always said, ‘Let’s pay the kids,'” the source added. “The deal is that you work hard and get paid at the end of the year. It’s embarrassing for associates that their junior employees don’t get paid.

For some Goldman employees, bonuses have been reduced by 90%. Many junior bankers – who last year reaped well into the six-figure bonuses – received only $10,000 or $15,000, The Post previously reported.

Some company sources say they don’t understand why Solomon is holding another Investor Day given that the first one – held in 2020 just before the pandemic hit – was a flop.

“On the last day of investors, Solomon said X and everything turned out to be the opposite of what he predicted,” a Goldman source told The Post.

In 2020, Solomon touted Goldman’s fledgling consumer bank, Marcus – then a business that brought in just 2.4% of the firm’s total revenue. After investing nearly $6 billion in Marcus and never turning a profit, Solomon is cutting it after “his ambitions got the better of him,” a person close to Solomon said.

A spokesperson for the bank told The Post: “We have set a clear strategic direction and look forward to discussing our progress at Investor Day.”

People Close to the Paperback Goldman’s total salary and benefits fell 15% in the fourth quarter, while the CEO’s salary fell 29%.

These people add to this that Solomon has a solid plan for the second Investor Day where he will focus on the three core strategies he has already unveiled – increasing wallet share and funding in banks and markets. , increasing management fees in asset and wealth management, and driving profitability in platform solutions – and how he plans to achieve them.

Still others say holding an Investor Day without a radically new vision can be wasteful – and create hype for nothing.

“The risk is that he won’t reveal anything at all,” a Goldman source told the Post on condition of anonymity. “I guess it will just be more of the same talking points as last time.”