Unlock Editor’s Digest for free
Roula Khalaf, editor of the FT, picks her favorite stories in this weekly newsletter.
Goldman Sachs boosted CEO David Solomon’s pay by 26 percent to $39 million and set up $80 million in retention plans for him and Chairman John Waldron in an effort to ensure the two stay at the bank for the next few years.
The five-year retention package for the first time includes bonuses based on the performance of Goldman’s alternative asset funds in addition to stocks and cash, a sign that the Wall Street bank is starting to pay its top people the same way as the most profitable private equity firms.
The equity component of the package is based on meeting targets for Goldman’s share price and return on equity, while there is also a component linked to the bank’s assets based on their performance, a type of payment known as a “carry”.
The bank said it is “developing compensation to enhance the firm’s ability to continue to attract and retain top talent at a time when competition for Goldman Sachs talent is particularly fierce, including asset managers and other non-banks.”
This is a developing story
