Investing.com -- The Board of Goldman Sachs (NYSE:GS) has decided to increase the total annual compensation for CEO David Solomon to $39 million for 2024, up from $31 million in 2023, based on the recommendation of the Compensation Committee.
In addition to the salary increase, the Board has also approved the grant of 130,508 restricted stock units (Retention RSUs) for both Solomon and John Waldron, the President and Chief Operating Officer (COO). The stock units, which have a grant date value of $80 million and a five-year vesting period, were granted on January 16, 2025. This move is part of the Board's strategy to retain the senior leadership team and ensure stability and continuity in the firm's leadership over the next five years.
The Retention RSUs, which are entirely stock-based awards, aim to align the interests of Solomon and Waldron with long-term shareholder value creation. These stock units are not part of the annual compensation for Solomon and Waldron. The RSUs will not vest until January 2030, subject to continuous service with Goldman Sachs, with only certain exceptions such as death and disability.
The firm's standard forfeiture and clawback provisions apply to the Retention RSUs. These include recapture for events constituting "Cause," failure to perform obligations under any agreement with Goldman Sachs, and involvement in materially improper risk analysis or insufficiently raising concerns about risks.
In another development, the Compensation Committee and the Board approved an allocation of carried interest points on January 14, 2025. This allocation was made to Solomon, Waldron, Chief Financial Officer Denis Coleman, Chief Legal Officer Kathryn Ruemmler, and certain other senior leaders as part of the 2024 annual compensation. This was done under a newly adopted Long Term Executive Carried Interest Incentive Program (CIP).
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