Goldman Sachs Group Inc. CEO David Solomon received his largest pay increase to date, with compensation jumping 21% to $47 million for 2025, according to a Bloomberg report. This substantial hike positions Solomon ahead of America's largest banker, JPMorgan Chase CEO Jamie Dimon, whose pay rose 10.3% to $43 million for the same period. Notably, both executives earned identical compensation of $39 million in 2024.

Compensation Structure and Breakdown

Solomon's $47 million compensation package demonstrates the bank's commitment to rewarding strong leadership performance. The breakdown reveals a strategic mix of base salary and performance-linked incentives.

Performance Drivers Behind Pay Increase

The compensation increase reflects Goldman Sachs' exceptional performance under Solomon's leadership. According to company filings with the US Securities and Exchange Commission, the bank achieved several milestone accomplishments that justified the substantial pay raise.

Key performance indicators that drove the compensation decision include:

• Record management fees in the asset-management business
• Record revenue in the banking and markets division
• Strong Q4 results that beat Wall Street expectations
• Surge in dealmaking and trading activities

Stock Performance and Market Position

Goldman Sachs demonstrated remarkable stock performance during 2025, significantly outpacing major competitors in the investment banking sector.

Leadership Continuity and Succession Planning

The compensation decisions extend beyond Solomon to include strategic retention measures for key leadership. In April, shareholders approved $80 million retention awards for both Solomon and Goldman Sachs President John Waldron. These retention shares are scheduled to vest in January 2030, with Waldron being viewed as Solomon's eventual successor.

The bank recently named President and Chief Operating Officer John Waldron to its board, reinforcing his status as a potential successor. This appointment came a month after awarding him the 2025 retention bonus, making Waldron the second management committee member to gain a board seat alongside Solomon.

Executive Background

David Solomon, 64, has led Goldman Sachs since 2018 when he succeeded Lloyd Blankfein. Solomon joined the bank as a partner in 1999 after leaving Bear Stearns and rose through the ranks over nearly two decades. His leadership tenure has been marked by strategic initiatives in asset management and sustained performance in traditional banking and markets operations.

The substantial pay increases for both Solomon and Dimon highlight the competitive landscape among top investment banks and their efforts to retain proven leadership. Solomon's compensation structure, heavily weighted toward performance-based bonuses, aligns executive rewards with shareholder value creation and operational excellence.