Goldman Sachs cuts CEO’s payout by $ 10 million due to major scandal

Goldman Sachs cuts CEO’s payout by $ 10 million due to major scandal

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Solomon’s compensation package was reduced to $ 17.5 million in 2020, down from the $ 27.5 million he received in 2019, according to a U.S. Securities and Exchange document on Tuesday. The $ 10 million payment comes after Goldman agreed to pay nearly $ 3 billion after pleading guilty to charges that the bank conspired to violate U.S. anti-bribery laws in a major 1MDB scandal.
Goldman Sachs unit pleads guilty in bribery case in Malaysia and agrees to pay $ 2.9 billion

In October, the bank said Solomon would face a payment cut, along with other senior executives, including its CFO Stephen Scherr and COO John Waldron, in light of the findings of the investigation involving the U.S. Department of Justice and other officials .

The scandal is related to the sale of securities that Goldman Sachs (FADXX) provided and subscribed to 1MDB, from which the US Department of Justice claims that $ 4.5 billion was stolen. The Justice Department accused Malaysian financier Jho Low, who was linked to the film “The Wolf of Wall Street”, of devising a plan to channel the fund’s money into the bank accounts of former Malaysian Prime Minister Najib Razak.

Scherr’s payment was reduced to $ 15.5 million from $ 22.5 million in 2019. Waldron’s payment was reduced to $ 18.5 million, down from $ 24.5 million in 2019. In total, the total remuneration of the three executives for 2020 was reduced by $ 24 million in response to the falling bribery scandal.

“Although none of Messrs. Solomon, Waldron or Scherr was involved in or aware of the company’s participation in any illicit activity at the time the company organized 1MDB securities transactions, the Board sees the 1MDB issue as an inconsistent, institutional failure with the high expectations it has for the company “, states the document.

CNN’s Eoin McSweeney contributed to this report.

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