{"id":2844,"date":"2021-01-27T18:18:18","date_gmt":"2021-01-27T18:18:18","guid":{"rendered":"https:\/\/businessner.com\/?p=2844"},"modified":"2021-01-27T18:18:18","modified_gmt":"2021-01-27T18:18:18","slug":"goldman-sachs-cuts-ceo-salary-by-10-million-after-1mdb-scandal","status":"publish","type":"post","link":"https:\/\/businessner.com\/goldman-sachs-cuts-ceo-salary-by-10-million-after-1mdb-scandal\/","title":{"rendered":"Goldman Sachs Cuts CEO Salary by $10 million after 1MDB Scandal"},"content":{"rendered":"
Goldman Sachs slashed its CEO David Solomon\u2019s salary by $10 million following the bank\u2019s involvement in Malaysia\u2019s 1MDB scandal.<\/p>\n
Documents filed by the bank to the Securities and Exchange Commission<\/a> on Tuesday revealed that Solomon\u2019s annual pay was lowered to $17.5 million following the bribery scandal that involved some former Goldman Sachs employees and Malaysian Prime Minister Najib Razak.<\/p>\n The Goldman Sachs CEO\u2019s annual compensation was reduced by as much as 36% for 2020 from the $27.5 million he received in the previous year.<\/p>\n The pay cut comes after the New York-based investment bank announced in July 2020 that it has reached a $3.2 billion settlement with the Malaysian government for its role in the multi-billion dollar 1MDB corruption scandal.<\/p>\n Related Story:<\/strong> Ex-Malaysian PM Najib Razak gets 12-year jail term over 1MDB scandal<\/a><\/p>\n As part of the settlement, the American investment bank agreed to pay $ 2.5 billion to the Malaysian government in exchange for dropping criminal charges for its alleged role in the 1Malaysia Development Berhad or 1MDB corruption scandal. The bank also guaranteed recovery of around $1.4 billion in proceeds from assets seized by governmental authorities around the world.<\/p>\n The bank said in its disclosure that Solomon would face a pay cut, along with other top executives that include CFO Stephen Scherr and COO John Waldron.<\/p>\n Scherr’s pay was reduced 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.<\/p>\n The bank\u2019s top three executives\u2019 annual compensation in 2020 was reduced by $24 million in response to the bribery scandal fallout.<\/p>\n