Goldman Sachs Brutally Cuts Pay for Senior Executives
(27 October 2020 – United States) Goldman Sachs make pay cuts in the excess of US$174 million to senior executive salaries, making them accountable for the bank’s role in the 1Malaysia Development Berhad (1MDB) fraud.
All compensation packages will also be cut for CEO David Solomon and his senior team, as well as the clawback of past financial rewards. This action will recoup some of the financial penalties the bank incurred because of the scandal.
Since the incident, Goldman Sachs have doubled its compliance staff to ensure that they have full visibility and control over compliance.
"Today, our board of directors announced action with respect to past and current senior management compensation, among other areas of focus. This action is entirely appropriate under the circumstances. The board's announcement is an important reminder that we are all responsible for each other's actions, including our collective failures” commented Goldman Sachs CEO, David Solomon.