Goldman Sachs cut CEO David Solomon’s pay to $25 million last year from $35 million in 2021, the Wall Street Journal reported today (Jan. 27). The 30 percent drop reflects the bank’s overall performance in 2022, in which its profit fell 48 percent year-over-year.
Earlier this month, Goldman began laying off 3,200 employees, or 7 percent of its workforce, in its largest layoffs since the 2008 financial crisis. Investment banks across Wall Street experienced slowdowns in corporate deal-making that limited their earnings.
Despite economic conditions that affected most banks, Solomon’s pay fell more than that of other Wall Street chief executives. Morgan Stanley’s CEO took a 10 percent pay cut in 2022, earning $31.5 million, according to the Journal. The pay for CEOs at JPMorgan Chase and Wells Fargo stayed in line year-over-year. They earned $34.5 million and $24.5 million, respectively.
Solomon’s pay has fluctuated by millions of dollars in recent years. The $35 million he made in 2021 was double his pay the year prior, after Solomon took a pay cut due to Goldman’s admission it conspired to break U.S. corruption laws.