Goldman Sachs CEO David Solomon’s pay was cut around 30% in 2022 and he took home…only $25 million|World Bank Photo Collection|CC BY-NC-ND 2.0
Financial and tech companies have been plagued by mass layoffs for the past few months. Spearheading the layoffs are CEOs who also seem to be bruised by it.
The investment banking firm Goldman Sachs—which recently laid off nearly 4,500 employees—revealed Friday that its CEO David Solomon received a pay cut of around 30% in 2022 and took home $25 million.
Not alone
David Solomon isn’t the only one. Earlier this week, another investment banking behemoth JPMorgan Chase announced its CEO Jamie Dimon wouldn’t get the ‘special award’ that made his annual pay $50 million and instead needs to be satisfied with $34.5 million.
Google and Alphabet laid off 12,000 employees recently, and the company’s CEO, Sundar Pichai, announced this week that senior executives—including himself—will take pay cuts. Apple CEO Tim Cook volunteered to take a 40% pay cut. He will receive $49 million in 2023.
What does this mean?
Openly indicating their CEO’s pay cut amid mass layoffs is a strategic move by companies to salvage their reputation and earn trust. Companies that prioritize paying employees over top executives during financial turmoil tend to do well with customers, investors and shareholders, per a study by Oxford University.