Economy January 26, 2026

Goldman Sachs Boosts David Solomon’s 2025 Pay to $47 Million After Strong Dealmaking Year

Compensation rises 20.5% as the bank leads global M&A and posts robust trading and advisory results in 2025

By Hana Yamamoto
Goldman Sachs Boosts David Solomon’s 2025 Pay to $47 Million After Strong Dealmaking Year

Goldman Sachs raised CEO David Solomon’s total compensation to $47 million for 2025, a 20.5% increase from the prior year, following a year of elevated deal activity and trading gains that propelled the bank to the top of global M&A rankings. The package, which included a $2 million base salary and $45 million in variable pay, exceeded peer pay disclosed for the year.

Key Points

  • David Solomon’s 2025 total compensation increased 20.5% to $47 million, composed of a $2 million base and $45 million in variable pay.
  • Goldman Sachs led global M&A in 2025, advising on $1.48 trillion of deals and collecting $4.6 billion in fees, helped by major transactions such as the $56.5 billion Electronic Arts leveraged buyout and Alphabet’s $32 billion acquisition of Wiz.
  • Stronger dealmaking and trading drove fourth-quarter results that beat expectations, and the bank signaled optimism for investment banking activity in 2026 amid a more accommodating regulatory stance, lower interest rates, and ample liquidity.

Goldman Sachs reported that David Solomon will receive total annual compensation of $47 million for 2025, a rise of 20.5% from the prior year. The bank said the increase followed what it described as a strong year, positioning Solomon among the highest-paid chief executives on Wall Street.

The 2025 pay package consisted of a $2 million base salary plus $45 million in annual variable compensation. For context, Solomon received $31 million in 2023 and $39 million in 2024. Goldman noted in its filing that the board set compensation after considering the bank's financial performance on both an absolute and relative basis, the 2025 operating environment, and the institution's longer-term results.

Solomon's pay package for 2025 exceeded the compensation disclosed by another major U.S. bank leader. JPMorgan Chase CEO Jamie Dimon was reported to receive $43 million, a year-on-year increase of a little over 10%.

Goldman capped a productive year with fourth-quarter results that beat market expectations. The bank attributed those results to a surge in dealmaking as well as stronger trading activity. Several large transactions in 2025 underpinned Goldman’s advisory revenue, including the $56.5 billion leveraged buyout of Electronic Arts and Alphabet’s $32 billion acquisition of the cloud security firm Wiz.

In addition to advising on major mergers, Goldman served as a lead underwriter for Medline’s initial public offering in the fourth quarter. The bank said the Medline listing was the largest IPO globally in 2025. These high-profile assignments contributed to Goldman reclaiming the top position worldwide in merger and acquisition advisory for the year, with the bank advising on $1.48 trillion in deal volume and earning $4.6 billion in fees.

The filing also noted that the bank expressed optimism for investment banking activity in 2026. Goldman cited a more accommodating regulatory stance under U.S. President Donald Trump, together with lower interest rates and ample liquidity, as factors that have encouraged companies to increase dealmaking. The bank said these conditions have helped investment banks, including Goldman Sachs, realize stronger results.

Under Solomon’s leadership, Goldman Sachs shares rose sharply in 2025. The filing reported a 53.5% gain in the bank’s stock over the year, an improvement that outpaced the broader market index and most of its banking peers.

Solomon’s tenure at Goldman dates back to when he was named a partner in 1999 after leaving Bear Stearns. He subsequently advanced through the firm’s ranks and succeeded Lloyd Blankfein as chief executive. Solomon, age 64, was appointed Goldman Sachs’ chief executive in 2018.

The bank also highlighted an internal governance move tied to succession planning. President and Chief Operating Officer John Waldron was added to Goldman’s board a month after receiving a 2025 retention bonus. Waldron becomes the second member of the management committee to hold a board seat, a step the filing indicated reinforces his standing as a potential successor to Solomon.


Contextual note: The bank described the compensation decision as the result of evaluating the company’s 2025 performance, the operating conditions during that year, and longer-term outcomes. The filing tied pay to both the annual results and relative performance measures.

Risks

  • Dependence on sustained dealmaking and trading volumes - Investment banking and capital markets revenues could be vulnerable if deal flow or trading activity weakens, affecting banks and advisory firms.
  • Regulatory and macro sensitivity - The bank’s outlook and fee generation are influenced by regulatory stance, interest rates, and liquidity conditions; shifts in these factors could alter investment banking activity and market liquidity, impacting financial services and corporate dealmaking.
  • Succession and governance uncertainty - While John Waldron’s board appointment and retention bonus underscore his potential as a successor, future leadership transitions remain a source of strategic and operational uncertainty for the bank and its investors.

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