A year after Goldman Sachs clawed back or cut compensation from its top bosses over a corruption scandal, it’s paying them multimillion-dollar bonuses to stick around.
David M. Solomon, the bank’s chief executive, will be awarded $30 million at the end of five years if Goldman reaches its stock price targets, Goldman said in a filing made public on Friday. John E. Waldron, the bank’s president and chief operating officer, is eligible for a $20 million bonus under the same terms. The payouts are being given to “ensure leadership continuity” as the firm seeks to grow while competition for talent increases, according to the filing.
A year ago, Goldman announced that it would claw back or cut $174 million in total pay from past and present executives — including Mr. Solomon — after the bank admitted criminal wrongdoing by its Malaysian subsidiary for its role in the looting of 1MDB, the Malaysian government’s sovereign wealth fund.
Mr. Solomon’s pay was cut to $17.5 million in 2020, down from $27.5 million in 2019, while Mr. Waldron’s compensation fell to $18.5 million, from $24.5 million, according to a separate filing in January.
While neither executive was involved in, or aware of, the illicit activity, “the board views the 1MDB matter as an institutional failure,” the company said at the time. All told, Goldman paid billions in penalties and disgorgement in Malaysia, the United States and Hong Kong for its role in the scandal.