Goldman Sachs Group Inc. cut Chief Executive David Solomon’s salary by 36% in 2020, punishing the bank that last year admitted to violating US laws in dealing with an investment fund at the heart of a global corruption circle.
Mr. Solomon received a compensation package of $ 17.5 million for 2020, down from the $ 27.5 million he received for 2019, according to a securities filing Tuesday.
In October, Goldman agreed to pay nearly $ 3 billion to government officials in four countries to end an investigation into the work it had done for 1MDB, a Malaysian fund that prosecutors say was used to pay bribes to politicians in Malaysia and the Middle East. The bank said at the time that it would cost a total of $ 174 million in compensation from current and former executives.
Mr. Solomon’s salary in 2020 would have been $ 10 million higher, but for the actions taken by the board of directors in response to the 1MDB saga, Goldman said in the filing. His compensation package consisted of a base salary of $ 2 million, a cash bonus of $ 4.65 million and a stock award of $ 10.85 million that depends on how well the bank performs in the coming years.
Fees and fines related to the fallout from the 1MDB scandal took a bite out of what was a big year for Goldman’s businesses, which was greatly boosted by the markets recovering from the depths of the coronavirus recession. Its annual revenue of $ 44.56 billion was Goldman’s highest since 2009.