Form 4: Goldman Sachs CEO David Solomon Exercises Performance-Based Stock Units

David Solomon, Chairman and CEO of Goldman Sachs, exercised performance-based restricted stock units and sold shares to cover withholding obligations on April 30, 2024.

Summary

• On April 30, 2024, David Solomon, the Chairman and CEO of Goldman Sachs, exercised performance-based restricted stock units (PSUs) that were granted on January 20, 2021, as part of his 2020 year-end compensation.
• A total of 28,016 shares of Goldman Sachs common stock were delivered to Solomon upon the exercise of these PSUs, without any payment required from him.
• Simultaneously, 15,493 shares were withheld by the company to satisfy withholding tax obligations related to the PSU exercise, at a price of $430.81 per share.
• Following these transactions, Solomon directly owns 137,033 shares of Goldman Sachs common stock.
• He also indirectly owns 16,171 shares through a trust for his immediate family members, but he disclaims beneficial ownership of these shares.

Sentiment

Score: 6

Explanation: Neutral sentiment as it reflects routine executive compensation activity. The exercise of PSUs suggests performance targets were met, which is mildly positive, but the sale of shares for tax obligations is a standard procedure.

Positives

• The vesting of performance-based stock units suggests that performance targets were met, which is a positive indicator.

Future Outlook

The shares delivered to the Reporting Person generally cannot be sold or transferred before January 2026.

Industry Context

Executive compensation through stock options and restricted stock units is a common practice in the financial industry to align management's interests with those of shareholders.

Comparison to Industry Standards

• Goldman Sachs' executive compensation practices, including the use of performance-based restricted stock units, are generally in line with those of its peers such as Morgan Stanley, JP Morgan Chase, and Bank of America.
• These firms commonly use a mix of salary, bonus, and equity-based compensation to incentivize and retain key executives.
• The specific terms and conditions of these equity awards, such as vesting schedules and performance metrics, can vary significantly between firms.

Stakeholder Impact

• The exercise of stock options and subsequent sale of shares can have a minor dilutive effect on existing shareholders.
• However, it also aligns management's interests with those of shareholders, incentivizing them to increase shareholder value.

Key Dates