Sunday , March 7 2021

Goldman Sachs slashes CEO pay by $10 million over massive scandal

Solomon’s compensation bundle was decreased to $17.5 million for 2020, down from the $27.5 million he acquired in 2019, according to a US Securities and Exchange filing on Tuesday. The $10 million payout comes after Goldman agreed to pay nearly $3 billion after pleading responsible to prices the financial institution conspired to violate US anti-bribery legal guidelines in a large scandal with 1MDB.
Goldman Sachs unit pleads guilty in Malaysian bribery case and agrees to pay $2.9 billion

In October, the financial institution mentioned that Solomon would face a pay reduce, together with different prime executives together with its CFO Stephen Scherr and COO John Waldron in mild of findings from the investigation that concerned the US Division of Justice and different authorities.

The scandal pertains to bond gross sales that Goldman Sachs (GS) organized and underwrote for 1MDB, from which the US Justice Division alleges $four.5 billion was stolen. The Justice Division accused Malaysian financier Jho Low, who had ties to the movie “The Wolf of Wall Road,” of masterminding a plot to channel the cash from the fund to former Malaysian Prime Minister Najib Razak’s financial institution accounts.

Scherr’s pay was decreased to $15.5 million from $22.5 million in 2019. Waldron’s pay was slashed to $18.5 million, down from $24.5 million in 2019. In complete, the three executives’ complete compensation for 2020 was decreased by $24 million in response to the bribery scandal fallout.

“Whereas none of Messrs. Solomon, Waldron or Scherr was concerned in or conscious of the agency’s participation in any illicit exercise on the time the agency organized the 1MDB bond transactions, the Board views the 1MDB matter as an institutional failure, inconsistent with the excessive expectations it has for the agency,” the submitting said.

CNN’s Eoin McSweeney contributed to this report.

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