David Solomon is getting a bigger slice of Goldman Sachs Group Inc.’s private-equity profits.
The Goldman Sachs
chief executive and a tight circle of lieutenants are taking a cut of profits from the firm’s private investment funds, according to people familiar with the plans. The perk could be worth hundreds of millions of dollars over the next several years to those executives, the people said, multiples of their annual pay depending on how those funds do.
The perk risks angering both shareholders and the Goldman fund managers out of whose pockets the money will come.
Goldman executives and partners can only earn the carried interest if they also invest their own money in the funds, a bank spokeswoman said. With “reasonable fund returns,” she said, the executives couldn’t earn multiples of their annual pay.