Goldman Sachs to award over $500 million in special equity bonuses to senior executives
Goldman Sachs announced that about 20 senior executives will receive equity awards exceeding $500 million, the largest such payout in the bank’s history. CEO David Solomon is slated to receive more than $100 million. The awards are tied to a five‑year performance plan launched in October 2021 and will be finalized at the end of the month.
Why it matters
The equity awards could increase the share count and dilute earnings per share, which may affect investors’ valuation of the stock (the company notes the impact depends on whether new shares are issued or buybacks are used). The payout also signals strong executive retention incentives after a period of high shareholder returns.
Key facts
- 1Approximately 20 executives are set to receive equity awards exceeding $500 million. gurufocus.com
- 2CEO David Solomon is expected to receive more than $100 million. gurufocus.com
- 3The awards are part of a long‑term compensation program introduced in October 2021. aol.com
- 4Half of each award depends on absolute total shareholder return and half on relative performance versus six peers. mk.co.kr
- 5Goldman Sachs’ total shareholder return, including dividends, has risen about 150 % over the past five years. aol.com
- 6The final payout size will be confirmed at the end of the month when the five‑year performance period ends. mk.co.kr
Summary written by AlphAI from 17 of 17 sources. Not investment advice. Figures are as stated by the linked sources.