David Solomon hauled in massive bucks in 2021.
Bloomberg by way of Getty Pictures
Compensation for chief executives jumped 15.7% final 12 months — pushed primarily by enormous bonus payouts as firms recovered from the pandemic, in line with a brand new research.
The survey from advisory agency Willis Towers Watson discovered CEO salaries elevated 2% in 2021, however bonuses have been on common 39.5% greater for prime executives than the 12 months earlier than, when CEO bonuses really slumped 6.1%.
The evaluation relies on publicly disclosed compensation for 500 CEOs within the S&P 1500.
“The truth that CEO pay accelerated in a 12 months when income progress, earnings and return to shareholders shone demonstrates that CEOs are being rewarded for efficiency,” Don Delves, North America follow chief of Government Compensation at WTW mentioned.
“Final 12 months was a bounce-back 12 months for CEO compensation in addition to a very good 12 months financially for a lot of firms and shareholders.”
However, CEO has as soon as once more change into a hot-button challenge because the pandemic wanes.
Earlier this 12 months, shareholder advisory agency Glass Lewis mentioned Goldman Sachs’ plan to pay a $30 million one-time bonus to Chief Government David Solomon and a $20 million bonus to Chief Working Officer John Waldron was “extreme.”
The proxy agency instructed Goldman shareholders they need to vote in opposition to the chief pay bundle that accommodates the one-time reward bonuses. The problem was unsuccessful.
Likewise, Glass Lewis beneficial shareholders reject a particular $52.6 award JPMorgan CEO Jamie Dimon was given by the board if he stays on for 5 extra years.
Solely 31% of shareholders voted in favor of giving Dimon the large payout of inventory choices. Nonetheless, votes on pay are solely advisory — not binding — so Dimon continues to be anticipated to obtain the multi-million greenback award.
Solomon’s pay is in keeping with his opponents. James Gorman, CEO at Morgan Stanley, additionally raked in the identical quantity — $35 million — for 2021. Jamie Dimon’s 2021 complete compensation clocked in at $34.5 million.
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