What makes David Solomon and John Waldron so special?
Goldman Sachs really likes its CEO David Solomon and its COO John Waldron. It likes the two men so much that it revealed today that's its given the two men $80m each in stock retention awards that will vest in their entirety only in 2030.
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In case this isn't enough to dissuade either man for leaving for the likes of BDT & MSD along with various colleagues, Goldman is also converting some of the cash bonuses it pays to Solomon, Waldron and other of its 'executive officers' into carried interest points that are based on the value of various Goldman Sachs Asset Management alternatives funds launched in 2024. These points vest over a three-year period.
Goldman says specifically that the $80m in new stock retention awards it's paying Solomon and Waldron are in addition to the two men's existing "annual compensation." Waldron's 2024 compensation isn't disclosed. Solomon, however, earned $39m, up from $31m in 2023. The implication is that when his new $80m for five years is added on, Solomon will effectively earn $55m for each year from now to 2030.
What makes David Solomon so special? Goldman said today that it was paying him for, among other things, a "strong firmwide financial performance in 2024," for the 48% increase in its stock price, for his "strategic execution" and for strengthening the firm's global banking and markets and wealth and asset management franchises.
What about Waldron? There's no mention of why he deserves the extra $40m. However, it's worth remembering that Waldron allegedly threatened to resign for Carlyle in 2023 before being persuaded to stay and then (allegedly) again sidelined in some promotions in mid-2024. This is a message that Goldman loves him really.
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