Goldman Sachs Executives to Receive Over $500 Million in Bonuses

Goldman Sachs Group's top executives are set to receive special equity awards worth more than $500 million, Bloomberg News reported Wednesday, according to the New York Post, which cited Reuters. About 20 executives are in line for the payout, which is expected to be finalized later this month.

The size of the award traces back five years, not five weeks. Goldman granted the special equity in October 2021 and disclosed details of the arrangement in regulatory filings starting in late 2021 and early 2022, a person familiar with the matter told Reuters. What is landing in executives' accounts now is the vesting of a bet the bank made on its own stock near the start of the decade.

How much will each executive receive?

CEO David Solomon is set to receive more than $100 million, according to the report. The remaining roughly $400 million is split among roughly 19 other senior leaders, though the Post's sourcing does not break out individual amounts beyond Solomon's.

Who are the other recipients?

President John Waldron, widely viewed as Solomon's likely successor, is among those in line for an award. Business heads Ashok Varadhan, Dan Dees and Marc Nachmann are also named recipients, the report said. The roughly 20-person group spans the bank's most senior operating and business-line leadership.

Why were the awards granted in 2021?

The report frames the payout as a performance-based award tied to a five-year stretch in which Goldman outperformed most of its rivals. Such long-vesting equity grants are a standard tool banks use to tie executive pay to multi-year results and to keep senior talent from leaving for competitors, rather than a one-time cash bonus tied to a single strong quarter.

When will the bonuses be finalized, and what comes next?

Bloomberg's sourcing, as relayed by Reuters, indicates the awards are expected to be finalized later this month. The timing overlaps with Goldman's third-quarter earnings report, due out next week, which will give investors a fresh read on whether the bank's recent performance supports the scale of the award.

Timeline

• October 2021 — Special equity awards granted to roughly 20 Goldman executives.
• Late 2021–early 2022 — Goldman begins disclosing details of the awards in regulatory filings.
• 2021–2026 — Five-year performance period cited in the report as the basis for the payout.
• October 2026 — Awards expected to be finalized; Bloomberg reports the story.
• Next week — Goldman scheduled to report third-quarter earnings.

What to watch

• Whether Goldman's third-quarter earnings, due next week, reinforce the performance narrative behind the awards.
• Any additional detail on how the roughly $400 million outside Solomon's award is divided among the other 19 executives.
• Market and shareholder reaction once the awards are formally finalized later this month.
• Whether rival banks disclose comparable long-vesting equity grants tied to the same multi-year stretch.

The Post's report does not specify Goldman's own public comment on the figures, and the company's disclosures on the matter date to filings made starting in late 2021, not a new announcement this week.