Goldman Sachs Pays $80 Million to Retain Top Executive.
In a bold move to retain top talent, Goldman Sachs has reportedly paid $80 million to keep one of its key executives, David Solomon, on board.
The substantial payout underscores the importance of Solomon’s role within the company and the lengths to which the financial giant is willing to go to ensure stability and continuity in its leadership.
David Solomon, who has been with the firm for over two decades, has played a pivotal role in driving the company’s growth and success.
His expertise in investment banking and strategic decision-making has been instrumental in navigating the firm through various market challenges and opportunities.
According to reports, the $80 million retention package for David Solomon is composed entirely of restricted stock units (RSUs) and does not include any cash component.
The RSUs have a five-year vesting period, meaning they will vest in January 2030. RSU stands for Restricted Stock Unit, a form of compensation given to employees in the form of company shares.
However, these shares are “restricted” because they are subject to a vesting period, meaning the employee must meet certain conditions before they can own the shares outright.
A 5-year vesting period means that the employee will not have full ownership of the RSUs until they have worked for the company for five years from the date the RSUs were granted.
During this period, the employee typically cannot sell or transfer the shares. Once the vesting period is complete, the employee gains full ownership of the shares and can sell or transfer them as they wish.
In addition to the retention package, David Solomon received a separate annual compensation package for 2024, which includes a $2 million salary, an $8.33 million cash bonus, $25.9 million in performance stock units, and $2.78 million in the carried interest program.
This move comes at a time when the financial industry is facing increased competition for top talent, with firms offering lucrative packages to attract and retain the best minds in the business.
Source: Yahoo Finance. Image @ David Solomon on IG.
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