Goldman Sachs, $GS, has increased CEO Solomon’s pay 24% after firm’s profit slumps 24%

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Goldman Sachs, $GS, has increased CEO Solomon’s pay 24% after firm’s profit slumps 24%.Solomon's compensation for the year was $31 million, as disclosed by the bank on Friday. This amount not only represents an increase from the $25 million he received in 2022 but also exceeds the compensation of his counterparts Brian Moynihan and Charles Scharf at Bank of America (BAC) and Wells Fargo (WFC).Only JPMorgan Chase (JPM) CEO Jamie Dimon and outgoing Morgan Stanley (MS) CEO James Gorman received higher compensation for their 2023 performance. Citigroup (C) has yet to disclose CEO Jane Fraser's 2023 compensation.The increase in compensation could indicate solidifying board support for Solomon, following his efforts in 2023 to strategically pivot the firm away from consumer lending and toward its core strengths in trading, asset management, and investment banking.Goldman's profits declined by 24% as dealmaking slowed across the industry and the firm absorbed costs related to exiting consumer lending. Its full-year net income of $8.52 billion was the lowest since 2019, Solomon's first full year as CEO. However, the firm did see a significant gain in the fourth quarter, driven by increases in equities trading and wealth management.Goldman is undergoing significant changes as key executives depart, raising questions about the succession plan for Solomon. One notable departure in 2024 is Jim Esposito, the former co-head of Goldman's global banking and markets division, who is leaving after nearly three decades. Esposito had been considered a potential successor to Solomon.With Esposito's departure, attention may shift to other potential CEO candidates, such as president John Waldron, asset and wealth management head Marc Nachmann, or the other co-heads of the investment banking and trading operations.Even the composition of Goldman's board is changing, with ex-Goldman CFO David Viniar recently named as the board's lead director, replacing Adebayo Ogunlesi, who stepped down after selling his infrastructure investment company to BlackRock.