By Peter Rudegeair
Goldman Sachs Group Inc. slashed Chief Executive David Solomon’s 2020 pay by 36%, punishment for the bank’s admission last year that it broke U.S. laws in its dealings with an investment fund at the heart of a global corruption ring.
Solomon received a $17.5 million compensation package for 2020, down from the $27.5 million he got for 2019, according to a securities filing on Tuesday.
In October, Goldman (NYS:GS) agreed to pay nearly $3 billion to government officials in four countries to end an investigation into work it performed for 1MDB, a Malaysian fund that prosecutors had alleged was used to pay bribes to politicians in Malaysia and the Middle East. The bank said at the time that it would take a total of $174 million in compensation from current and former executives.
Solomon’s 2020 pay would have been $10 million higher but for the actions its board of directors took in response to the 1MDB saga, Goldman said in the filing. His compensation package consisted of a $2 million base salary, a $4.65 million cash bonus and a $10.85 million stock award that is tied to how well the bank performs over the next few years.
Costs and fines related to the fallout from the 1MDB scandal took a bite out of what was a banner year for Goldman’s businesses, which got a big boost from the markets’ bounceback from the depths of the coronavirus recession. Annual revenue of $44.56 billion was Goldman’s highest since 2009.
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