Goldman shareholders OK $160M pay packages for David Solomon, John Waldron despite opposition

Core Viewpoint - Goldman Sachs shareholders approved substantial pay packages, including $160 million in retention bonuses for CEO David Solomon and President John Waldron, despite recommendations against such compensation from proxy adviser Glass Lewis [1][2][3]. Compensation Approval - The approval for executive compensation received 66% support from shareholders, a decrease from 86% the previous year, indicating growing concerns over pay alignment with performance [3][4]. - The retention bonuses for Solomon and Waldron are designed to secure their leadership roles, with the bonuses vesting over five years [3][5]. Financial Performance - Goldman Sachs reported a significant increase in earnings per share, reaching $40.54 in 2024, a 77% rise from the previous year, attributed to a rebound in deal-making and record equities revenue [5]. Economic Outlook - CEO Solomon highlighted the uncertain economic outlook, emphasizing the importance of feedback from various stakeholders to foster economic certainty and long-term growth [6]. Shareholder Proposals - Shareholders voted against all individual proposals, including one aimed at eliminating "discriminatory" diversity, equity, and inclusion goals related to compensation [8][12]. - Goldman Sachs clarified that meeting diversity hiring or promotion goals does not influence compensation decisions for senior management [9]. Succession Planning - The board's actions suggest that Waldron is positioned as a likely successor to Solomon, reflecting ongoing CEO succession discussions across major financial institutions [3][10].