Goldman Sachs CEO Solomon Gets Raise

Goldman Sachs Group Inc. Chief Executive David Solomon got a 19% raise in 2019, a message likely to resonate poorly among traders and bankers who saw their own bonuses cut and who are facing a long period of economic uncertainty.

Mr. Solomon earned $24.7 million in 2019, the bank said Friday, including a $7.7 million cash bonus and almost $15 million in stock. That is up from $20.7 million the year before, most of which he spent as CEO-in-waiting, and makes him Goldman's best-paid chief since Lloyd Blankfein took home $41 million in 2008.

His top lieutenants also received pay bumps. John Waldron, the banks' president and chief operating officer, was paid $22 million and finance chief Stephen Scherr received $20 million. At Goldman, as at other big banks, most of their compensation is in the form of shares whose value is tied to how the bank performs over the next few years.

The pay packages are likely to rile employees who saw their bonus checks shrink in 2019 as Goldman spent heavily to build new businesses like consumer banking and upgrade its technology. Revenue was flat and profits fell to a four-year low, in part because the bank socked away an extra $1.1 billion in legal reserves as it nears a settlement with U.S. regulators over its involvement in a Malaysian corruption scandal.

JPMorgan Chase & Co. gave CEO James Dimon, the highest-paid bank chief, a 1.6% raise to $31.5 million. Goldman's close rival, Morgan Stanley, cut the pay of CEO James Gorman 7% despite record annual revenue.

Write to Liz Hoffman at liz.hoffman@wsj.com

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