Top bosses at Goldman Sachs to share bonus pot worth up to $500m

Goldman Sachs executives are set to receive bonuses totaling up to $500 million ($378 million), marking one of the largest payouts in the bank's history. The generous sum, which could be split among 20 bankers, will be led by CEO David Solomon, who could earn about $100 million ($75.6 million). The bulk of the payout is contingent upon the performance of Goldman Sachs' stock over the past five years, as well as its comparison with competitors like JP Morgan and Bank of America.

The bonuses are part of a long-term investment plan initiated by the bank in 2021, aiming to align executive compensation with rigorous performance thresholds, ensure leadership continuity, and enhance retention of top talent in a competitive market. Other top executives, including the president John Waldron and co-heads of global banking and markets, Ashok Varadhan and Dan Dees, are also expected to share in the bonus pool.

The news of the hefty bonus comes just days before Goldman Sachs is set to release its third-quarter earnings on October 13. The bank's stock has surged by roughly 146% over the past five years, and climbed about 300% since Solomon became CEO. A Goldman Sachs spokesperson stated that the board created these awards to "align compensation with rigorous performance thresholds, ensure leadership continuity and enhance retention of our top talent in an increasingly competitive market." The bank's performance has been exceptional over the years since Solomon's leadership.