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Waldron widely seen as a successor to Solomon

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Solomon's 2024 compensation rose by 26%

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Goldman Sachs ( GS ) made $4.11 billion net income in Q4, beating

estimates

(Recasts first paragraph with bonus, turnaround)

By Saeed Azhar

NEW YORK, Jan 17 (Reuters) - Goldman Sachs ( GS ) CEO David

Solomon was awarded an $80 million stock bonus to stay at the

helm for another five years, a stark turnaround for a leader

whose survival was questioned after the firm's ill-fated foray

into consumer banking.

John Waldron, Goldman's president and chief

operating officer, and who is widely seen as a successor to

Solomon, was also awarded a retention bonus of $80 million in

restricted stock, the bank said in a regulatory filing on

Friday.

The bonuses, which vest in five years, are an effort by

Goldman's board to retain Solomon and Waldron as a senior

leadership team, the company said in the filing.

Goldman also reported that Solomon's compensation for

2024 rose by 26% to $39 million.

CEO succession is in focus across Wall Street. From Jamie

Dimon at JPMorgan Chase to Brian Moynihan at Bank of

America ( BAC ), investors are focused on the long tenures of

executives running the largest U.S. banks.

The latest vote of confidence for Solomon, 63, comes after a

turbulent period during which investment banking activity

declined and Goldman's consumer business lost money, prompting

criticism of his leadership and speculation two years ago that

his job was at risk. Solomon, 63, has faced off doubters as the

bank's stock rallied, markets rebounded and he slimmed down

Goldman's retail operations.

Goldman Sachs ( GS ) shares rose almost 2% on Friday afternoon.

The bank's share price jumped 48% in the last year, and is

up 174% since Solomon took over in 2018.

"The firm is delivering strong performance and the board is

determined to maintain our momentum, ensure stability, and keep

in place a solid succession plan," Goldman Sachs ( GS ) spokesperson

Tony Fratto said.

"The board is also evolving compensation to enhance the

firm's ability to continue to attract and retain the best talent

at a time when the competition for Goldman Sachs ( GS ) talent is

especially fierce, including from asset managers and other

non-banks," he added.

Goldman Sachs ( GS ) beat Wall Street estimates and earned its biggest

quarterly profit in more than three years as its investment

bankers brought in more deal fees, while its traders benefited

from active markets. Net income climbed to $4.11 billion in the

fourth quarter, the bank reported on Wednesday.

Solomon told the Reuters Next conference in December that he

will lead the bank as long as the board wants him to remain.

Solomon's compensation rose from $31 million in 2023. His

2024 compensation included a $2 million base salary and $8.3

million in cash bonus, with the remainder in stock and a new

type of incentive award.

BACK TO TRADITIONAL MAINSTAYS

After graduating from college, Solomon was rejected by

Goldman for a job, and later joined as a partner in 1999 from

Bear Stearns.

He climbed the ranks in investment banking and took over

from Lloyd Blankfein, who steered Goldman through the 2008

financial crisis and its aftermath.

Under Solomon, Goldman decided to shrink the consumer

business that he once championed. Its retail operations lost

billions of dollars and prompted the bank to sell assets and

take writedowns.

The Wall Street powerhouse has since shifted its focus back

to traditional mainstays of investment banking and trading,

while pushing growth areas of asset and wealth management.

"This week it seems like things are going well, next week

things could be tough," Solomon told Reuters in December. "But

we're committed to a strategy, we have enormous support from our

board, we have an incredible team and I think we're making good

progress, but more to do."

Waldron, 55, who has been president and chief operating

officer since 2018 and previously served as co-head of

investment banking, is seen as Solomon's closest lieutenant.

Solomon and Waldron were among executives whose pay was cut

by millions in 2020 after a graft scandal at Malaysian state

fund 1MDB prompted Goldman to pay a record $2.9 billion in the

United States to settle investigations.

Solomon said in a statement at the time that none of the

past or current members of senior management were involved in,

or aware of the firm's participation in any illicit activity

when Goldman arranged the Malaysian bond deals.