Goldman Sachs is preparing to hand its top 20 executives a bonus pool worth as much as $500 million, one of the largest collective payouts in the firm's history, with chief executive David Solomon positioned to receive roughly $100 million of that sum in stock.
The plan and the numbers
The award caps a long-term incentive plan the board designed in 2021. Its final value, expected to be confirmed later this month, is linked to two metrics: how far Goldman's share price has risen over five years and how that performance stacks up against rivals such as JPMorgan and Bank of America. Solomon's slice would more than double the $47 million package he received for 2024. President John Waldron, widely seen as the next chief executive, is also in the pool, along with the leaders of the global banking and markets division, Ashok Varadhan and Dan Dees.
Stock performance does the heavy lifting
The bank's shares have climbed about 146 percent over the past five years and roughly 300 percent since Solomon took the helm. A spokesperson said the awards were built to align pay with rigorous performance thresholds, secure leadership continuity and retain top talent in an increasingly competitive market. The firm's exceptional performance over the period, the spokesperson added, is no secret.
Timing and context
News of the payout, first reported by Bloomberg, arrives days before Goldman reports third-quarter earnings on 13 October. It also lands amid a broader run of outsized compensation on Wall Street. Citigroup disclosed earlier this year that chief executive Jane Fraser earned a record $42 million for 2025. JPMorgan's Jamie Dimon took home $43 million last year, up 10 percent, while his own long-term incentive award is valued at about $270 million, according to Bloomberg.
What to watch
The board's rationale rests on retention and alignment, but the scale of the pool, concentrated among 20 people, will invite scrutiny as the bank heads into earnings season. Investors will weigh whether the stock-price gains that justify the award are sustainable or whether the payout itself becomes a signal that the cycle has peaked.