The American bank Goldman Sachs lowers the reward for his top man David Solomon. Due to Goldman’s role in the massive fraud scandal in Malaysia, his fee fell by $ 10 million. Solomon is still good for a $ 17.5 million reward package.
Goldman Sachs previously made major deals with the Malaysian state fund 1MDB. The former prime minister of the country, Najib Razak, was convicted of smuggling large sums of money out of that fund. The Malaysian government established 1MDB in 2009 as an investment fund for economic development. American justice estimates that billions of dollars have disappeared from the fund.
Goldman Sachs himself reached a $ 2.9 billion settlement with US public prosecutors in October because it had won lucrative contracts from 1MDB through bribery. In total, the bank lost more than USD 5 billion in the handling of civil and criminal investigations.
The issue was reason for the bank to impose the $ 10 million fine on Solomon. Apart from that, the bank kept Solomon’s pay equal to a year earlier.
Goldman closed last year with a 22 percent increase in profits, while the bank also received the highest fine ever in the U.S. for a foreign bribery case. Although Solomon was never found guilty, the bank considered it appropriate to hold a total of $ 31 million in reward for the bank’s top executives.
Earlier, Morgan Stanley announced that top man James Gorman’s reward would be increased by 22 percent to $ 33 million. That makes him the best-paid bank manager in the United States. He crossed Jamie Dimon from JPMorgan Chase. That bank kept the annual reward for the top man at $ 31.5 million.