Goldman Sachs slashes CEO salary by $ 10 million over major scandal

According to US Securities and Exchange filings, Solomon’s compensation package was reduced to $ 17.5 million for 2020, down from the $ 27.5 million he received in 2019. The $ 10 million payment comes after Goldman agreed to pay nearly $ 3 billion after allegations of conspiring to violate US anti-bribery laws in a major scandal with 1MDB.
Goldman Sachs unit pleads guilty in Malaysian bribery case and agrees to pay $ 2.9 billion

In October, the bank said Solomon would face a pay cut, along with other top officials including its CFO Stephen Shere and COO John Waldron, in light of findings from investigations by the US Department of Justice and other authorities.

This scam is related to the sale of bonds Goldman Sachs ()GS) Arranged and underweight for 1MDB, of which the US Department of Justice alleges $ 4.5 billion was stolen. The Justice Department accused Malaysian financier Zhao Lo, who had ties to the film “The Wolf of Wall Street”, of a plot to deposit money from bank accounts of former Malaysian Prime Minister Najib Razak.

In 2019, Scherr’s salary was reduced from $ 22.5 million to $ 15.5 million. Waldron’s salary was reduced to $ 18.5 million in 2019. In total, the three officers’ total compensation for 2020 was reduced to $ 24 million in response to the bribery scandal. Conflict.

“While nothing of Messrs. Solomon, Waldron or Shere was involved in or about the firm’s involvement in any illegal activity at the time of arranging the 1MDB bond transaction, the Board considers the 1MDB case to be an institutional failure, These are expectations for a firm inconsistent with high, ”the filing said.

Eoin McSweeney of CNN contributed to this report.


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