on the money
February 27, 2023 | 6:18 pm
David Solomon will set out his vision for Goldman Sachs on the company’s second investor day.
As Goldman Sachs prepares to hold its second-ever investor day, grumbles are swirling about the bank’s struggles under CEO David Solomon — with some bankers saying the boss’s bonus should have dwindled more than it did.
As Solomon lays out his vision for the Wall Street giant at Tuesday’s end, many are still chafing at their disappointing year-end payouts — and blaming their part-time DJ CEO, sources told On The Money.
“The partners have received a huge paycheck. They got 50% less this year, partly because of David’s failed ideas,” a source who spoke on condition of anonymity told The Post. “Solomon only took a 30% discount. Why didn’t he take the same blow as the partners?”
After enduring a terrifying round of layoffs that claimed more than 3,200 last month, the company’s surviving partners are clearly frustrated with the state of their bank accounts. But some also worry they’ve lost credibility with junior workers, whose meager bonuses were a slap in the face after a year of 100-hour workweeks, sources added.
“Even in bad times, executives have always said, ‘Let’s pay the kids,’” the source added. “The agreement is that you work very hard and are paid at the end of the year. It is embarrassing for the partners that their junior employees do not get paid.”
Bonuses were cut by 90% for some Goldman employees. Many junior bankers — who pulled in bonuses well into the six figures last year — only received $10,000 or $15,000, The Post previously reported.
Some sources at the company say they don’t understand why Solomon is holding another investor day, as the first – held in 2020 just before the pandemic hit – was a flop.
“Last investor day said Solomon X and everything has turned out to be the opposite of what he predicted,” a Goldman source complained to The Post.
In 2020, Solomon praised Goldman’s fledgling consumer bank Marcus – then a company that brought in just 2.4% of the company’s total sales. After pouring nearly $6 billion into Marcus and never turning a profit, Solomon is building it back after “his ambitions got the better of him,” said a person close to Solomon.
A spokesman for the bank told The Post: “We have set a clear strategic direction and we look forward to discussing our progress at Investor Day.”
People Close to the Banknote Goldman’s total salary and benefits fell 15% in the fourth quarter, while CEO salary fell 29%.
These people add that Solomon has a solid plan for the second Investor Day where he will highlight the three core strategies he has already revealed: growing portfolio share and funding in banking and markets, rising management fees in asset and wealth management, and delivering profitability in platform solutions – and how he plans to achieve them.
Still others say that holding an investor day without a radically new vision can be a waste – and create hype for nothing.
“The risk is that he won’t reveal anything at all,” a Goldman source who spoke on condition of anonymity told The Post. “I suspect it will just be more of the same talking points from last time.”