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00:00Goldman Sachs CEO David Solomon taking a 30 percent pay cut. Twenty five million, according to the company. Bloomberg's Wall Street reporter Sonali Basak joins us now recently to walk me through. There are a few things to consider here. This twenty five million dollar total compensation package, the base salary, as usual, stayed flat. It's a burial or compensation that is down from near record levels a year ago. It's a little closer to where you was in 2018 when he was about twenty million, remember? Twenty. Twenty one was a record. So some pressure on pay was expected. But when you look at it, compared to rivals, it's a much steeper drop, according to sources familiar with the matter guy. This is in line with lower pay when it comes to the partners and senior management of the firm. Yeah, I guess it is. That's what's happening here. Is this a message to the troops? It certainly is a message to the troops. If you pay is going down across the board because firm wide compensation is going to go down. He couldn't have been clearer. He said it on television with us at the end of last year. Yes, it is very much in line from what I understand. Now, remember, last year was still overall a pretty decent year. There were some areas that came out very strong at the company. Remember, this also comes weeks before his Investor Day at the end of February. That's kind of where all the tension is when you look at Goldman Sachs and the path forward for David Solomon and Goldman Sachs. But again, when you look at what the board has said, that the firm's performance was really the number one thing that they looked at in comparison to record performance the year prior, as well as the strategic evolution of the firm, which again is in question again when you look at the end of February. So how much does he have to change around Marcus and in the consumer division to get that back pay back up? He said over and over that bringing that platform solutions business, as it's now known, those consumer businesses back to profitability. We know that they are shrinking a lot of that Marcus lending business here. But again, I think I want to point out one more time that we are seeing these banks handle the compensation question around their CEOs very differently. Jamie Diamond's package was unchanged. James Gorman has fallen 10 percent. David Solomon is about three times as much by percentage basis at 30 percent of a drop to twenty five million dollars. Yep. I guess you think that price performance over the last report. Yeah, I know. Of course you would say it's not all going out there and buying violence today. But but nevertheless, you take a look at the performance coming out of the earnings season. Maybe that is reflective of what we're seeing in some of these pay packets.

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Goldman Sachs Cuts CEO David Solomon’s Pay About 30%

Goldman Sachs cut CEO David Solomon’s compensation by about 30% to $25 million for 2022. The package includes a $2 million base salary and $23 million in variable compensation, with $16.1 million of that in the form of restricted stock units. Sonali Basak reports on "Bloomberg Markets: European Close." (Source: Bloomberg)

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