Goldman Sachs Group cut CEO David Solomon’s annual compensation 36 per cent after deducting a penalty for the bank’s 1MDB bribery scandal. The board reduced his package to $17.5 million for 2020, down from $27.5 million a year earlier. The payout fell after Solomon was required to return about $10 million to make amends for the firm’s criminal role in the looting of the Malaysian investment fund, the bank said on Tuesday. Excluding that penalty, the board effectively kept Solomon’s pay flat for the year.
The decisions cap a year in which Goldman’s revenue soared 22 per cent and the bank paid the highest penalty ever levied by the US in a foreign bribery case. In October, just weeks before the US elections, Goldman Sachs sealed a pact with the US Justice Department and other regulators.