Goldman Sachs Grants Retention RSUs and Amends Long-Term Executive Incentive Program

The Goldman Sachs Group, Inc. recently announced the granting of 130,508 restricted stock units (Retention RSUs) to Chairman and CEO David Solomon and President and COO John Waldron. The five-year vesting Retention RSUs, valued at $80 million each, were approved by the Board to retain the senior leadership team and maintain stability in the company’s strategic priorities.

These Retention RSUs, solely stock-based, aim to align long-term shareholder value with top executives’ interests. Vesting is contingent on continued service with Goldman Sachs, with exceptions such as death or disability, and includes dividend equivalent rights. They are also subject to standard forfeiture and clawback provisions, ensuring alignment with firm goals.

Additionally, Goldman Sachs introduced a Long-Term Executive Carried Interest Incentive Program. As per this program, carry points were allocated to executives, tying a portion of annual compensation to performance in managing funds. The Carried Interest Program seeks to attract and retain talent, aligning interests with long-term shareholder objectives.

The program’s key elements include the awarding of carry points from multi-asset access funds, conversion mechanisms based on future carried interest distributions, and vesting schedules subject to compliance with firm agreements. Distributions will depend on fund performance outcomes, while recapture provisions ensure adherence to risk management guidelines and compliance.

The Board also approved 2024 total annual compensation for Mr. Solomon at $39 million, reflecting a notable increase from the previous year. The decision was guided by the firm’s robust financial performance in 2024 and strategic execution, emphasizing client orientation, risk management, and people strategy. Goldman Sachs reported strong full-year financials, including net revenues of $53.51 billion, underpinning the rationale behind the compensation decisions.

The Compensation Committee considered a range of factors, such as the firm’s positioning in global banking and asset management segments, competitive talent landscape, and commitment to client-centric values. The annual compensation components for Mr. Solomon include base salary, performance-based restricted stock units, and carry points from the Carried Interest Program, reflecting the company’s strategic focus and performance metrics.

Kathryn H. Ruemmler, Chief Legal Officer and General Counsel, signed off on behalf of Goldman Sachs, underscoring the firm’s commitment to aligning executive compensation with long-term shareholder interests and strategic objectives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read The Goldman Sachs Group’s 8K filing here.

About The Goldman Sachs Group

The Goldman Sachs Group, Inc, a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions segments. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and relationship lending, and acquisition financing, as well as secured lending, through structured credit and asset-backed lending and involved in financing under securities to resale agreements.