Goldman to pay CEO Solomon $47M for 2025

Core Insights - Goldman Sachs' board attributed CEO David Solomon's compensation to "continued and significant shareholder value creation," highlighting the bank's strong financial performance in 2025 with net revenues of nearly $58.3 billion and net earnings of approximately $17.2 billion, alongside a 20% increase in profit and a 53.5% rise in share price over the year [3][8] Financial Performance - The bank reported its second-highest full-year net revenues and earnings, which were key factors in Solomon's pay increase [3] - Solomon's compensation package for 2025 totals $47 million, representing a 20.5% raise from the $39 million he received in 2024, positioning him as the highest-paid CEO among the six largest U.S.-based banks [8] Strategic Initiatives - Goldman Sachs emphasized "strong momentum" in executing strategic priorities and improving its risk profile, including the acquisition of Innovator Capital Management for $2 billion and Industry Ventures for nearly $1 billion [4] - The bank's decision to offload its Apple Card portfolio to JPMorgan Chase marks a significant shift away from its consumer banking efforts, which had previously faced criticism [5][6] Executive Compensation - Solomon's pay package includes a $2 million base salary, a $10.1 million cash bonus, $31.5 million in performance share units, and $3.4 million in carried interest from managed funds [7] - The bank's focus on executive retention is underscored by the competitive landscape for talent from both traditional banks and alternative asset managers [8]