Paul J. Davies, Columnist

The Boss Takes a Pay Cut But His Goldman Sachs Vision Survives

The firm’s search for a higher stock valuation drives a search for steadier revenue

January 27, 2023 at 4:47 PM UTC

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

J-curves and fortitude: David Solomon, chief executive officer of Goldman Sachs Group Inc.
*Photographer: Stefan Wermuth/Bloomberg*

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Goldman Sachs Group Inc. Chief Executive Officer David Solomon always said he was playing the long game. The investments needed to broaden the bank’s revenue base and improve efficiency would mean “tolerating J-curves and staying committed to new initiatives,” he said in 2020 at the first investor day Goldman had held. In plain English, there would be troubling losses before the benefits.

The bank and its shareholders didn’t have the “patience and fortitude” Solomon wanted for his digital consumer finance project. A filing on Friday showed his compensation was cut by about 30% to $25 million for 2022. Still, the aim of building durable, reliable revenue remains intact.