Goldman Sachs boss hit with $10m pay cut due to 1MDB scandal
Goldman Sachs boss David Solomon took a $10m pay cut last year due to the bank’s role in Malaysia’s 1MDB scandal.
Soloman’s pay was reduced 36 per cent, from $27.5m in 2019 down to £17.5m last year, the investment bank said.
It had previously confirmed that Soloman’s pay would be cut, along with finance chief Stephen Scherr and John Waldron, the firm’s chief operating officer.
They pay cuts follow investigations into the scandal, which found that between 2009 and 2014, Goldman bankers paid more than $1.6bn in bribes to foreign officials in Malaysia and Abu Dhabi to win 1MDB fund business.
The deals included underwriting $6.5bn in bond sales, for which it earned $600m in fees, the bank has said.
Waldron will receive $18.5m for his work last year, down 24 per cent, or $6m, from 2019.
Scherr will be paid $15.5m, down 31 per cent, or $7m, from the previous year.
Were it not for the 1MDB scandal, Solomon and Scherr’s pay would have been unchanged from the previous year, the bank said, and Waldron’s pay would have risen by $1m
Rival Morgan Stanley’s boss James Gorman saw his annual pay rise by $6m, or 22 per cent, last year, according to a regulatory filing released on Friday.