On a conference call to discuss earnings this week, Solomon and new CFO Denis Coleman took turns fielding questions about the jump in compensation expenses, describing the need to maintain a winning team.
Prodded by an analyst to explain the compensation costs, Solomon cited “real wage inflation everywhere” as one reason. The remark raised some eyebrows among veterans on Wall Street, because inflation isn’t typically much of a factor in setting bonuses, often the largest variable in annual pay.
Solomon and his deputies have explored other ways to boost their own pay. As Bloomberg reported last month, senior executives floated the idea of partaking in a cut of the rewards thrown off by Goldman’s own special purpose acquisition companies. That proposal called for the bank to allocate more founder shares in the blank-check vehicles, giving upper management a chance to profit handsomely if the investments succeed.
This article was provided by Bloomberg News.