Item 8.01 Other Events.
The Goldman Sachs Group, Inc. (the “Registrant,” the “firm” or “we”) today announced that the Board of Directors (“Board”), upon the recommendation of the Compensation Committee, has determined the 2022 total annual compensation for David Solomon, our Chairman and Chief Executive Officer.
Mr. Solomon’s total annual compensation for 2022 is $25 million (which consists of an annual base salary of $2 million, unchanged year-over-year, as well as annual variable compensation of $23 million). 70% of this annual variable compensation (i.e., $16.1 million) is in the form of performance-based restricted stock units (“PSUs”), which tie 100% of Mr. Solomon’s equity-based compensation to ongoing performance metrics, with the remainder to be paid in cash. This compares to Mr. Solomon’s total annual compensation for 2021 of $35 million.
The Compensation Committee was guided in its determination of 2022 compensation by, among other things, the firm’s Performance Assessment Framework, which is comprised of identified financial performance metrics as well as non-financial factors (i.e., client orientation; risk management; and people strategy scorecard).
In making its determinations, the Compensation Committee considered, among other things, the firm’s 2022 performance, both on an absolute basis and relative to peer results, as well as in comparison to the record performance delivered in 2021. The Committee also took into account the firm’s continued progress in its strategic evolution as well as Mr. Solomon’s strong individual performance and effective leadership. These factors were considered in the context of a challenging operating environment.
For the year ended December 31, 2022, the Registrant reported its second highest full-year net revenues of $47.4 billion, net earnings of $11.3 billion, its second highest diluted earnings per common share of $30.06 and return on average common shareholders’ equity of 10.2%. For 2022, the firm also delivered book value per share growth of 6.7%.