Goldman Sachs chief executive David Solomon’s annual pay fell by $12.9 million

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Goldman Sachs chief executive David Solomon’s annual pay fell by $12.9 million, or 36 percent, in 2020, according to regulatory disclosures filed on Tuesday, reflecting the bank’s role in Malaysia’s 1MDB scandal.

Key points:

  • David Solomon’s pay would have remained unchanged without the 1MDB penalty
  • Goldman Sachs paid $2.07 billion in bribes to the 1MDB investment fund, set up in 2009 under Malaysian prime minister Najib Razak
  • Goldman Sachs’ chief financial officer and chief operating officer have also had their pay cut

Mr Solomon would receive $22.6 million for his work during the year, compared with $35.5 million the year before, the bank said.

A bald white man speaks into a microphone.

Goldman previously announced it would reduce Mr Solomon’s pay, along with that of chief financial officer Stephen Scherr and chief operating officer John Waldron, in light of the findings of investigations into the bank’s role in the affair.

The scandal dates back to the government of former Malaysian prime minister Najib Razak, which set up the 1MDB fund in 2009.

Between 2009 and 2014, Goldman bankers paid more than $US1.6 billion ($2.07 billion) in bribes to foreign officials in Malaysia and Abu Dhabi to win 1MDB business, including underwriting $US6.5 billion in bond sales, for which it earned $US600 million in fees, the bank has said.

Mr Waldron will receive $23.9 million for his work last year, down 24 percent from 2019.

Mr Scherr will be paid $20 million, down 31 percent from the previous year.

Were it not for the 1MDB scandal, Mr Solomon and Mr Scherr’s pay would have been unchanged from the previous year, the bank said, and Mr Waldron’s pay would have risen by $1.29 million.

James Gorman, chief executive of rival company Morgan Stanley, saw his annual pay rise by $7.75 million, or 22 percent, last year, according to a regulatory filing released on Friday.

Goldman said in October it was clawing back $US174 million from a dozen current and former executives, including Mr Solomon and his predecessor Lloyd Blankfein.

The bank agreed to pay $US2.9 billion to settle probes into its role in the 1MDB corruption scandal.

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