Goldman Sachs cuts CEO salary by $ 10million amid massive scandal

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Solomon’s compensation package has been slashed to $ 17.5 million for 2020, down from the $ 27.5 million it received in 2019, according to a US Securities and Exchange filing on Tuesday. The $ 10 million payment comes after Goldman agreed to pay nearly $ 3 billion after pleading guilty to charges of conspiring the bank to violate U.S. anti-corruption laws in a massive scandal with 1MDB.
Goldman Sachs unit pleads guilty to corruption case in Malaysia, agrees to pay $ 2.9 billion

In October, the bank said Solomon would face a pay cut, along with other top executives, including CFO Stephen Scherr and COO John Waldron, in light of the investigation findings involving the US Department of Justice and other authorities.

The scandal concerns the bond sales which Goldman Sachs (FADXX) organized and subscribed for 1MDB, which the US Department of Justice alleges was stolen $ 4.5 billion. The Justice Department accused Malaysian financier Jho Low, who had ties to the film “The Wolf of Wall Street”, of organizing a conspiracy to funnel money from the fund into the former’s bank accounts. Malaysian Prime Minister Najib Razak.

Scherr’s compensation was reduced to $ 15.5 million from $ 22.5 million in 2019. Waldron’s compensation was reduced to $ 18.5 million from $ 24.5 million in 2019. In total, the total compensation of the three executives for 2020 was reduced by $ 24 million in response to the corruption scandal. Fall.

“Although none of Messrs. Solomon, Waldron or Scherr were involved in or aware of the company’s involvement in any illicit activity at the time the company organized the 1MDB bond transactions, the Conseil considers the 1MDB affair as an institutional failure, incompatible with the high expectations it has for the company, ”indicates the file.

CNN’s Eoin McSweeney contributed to this report.

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