The new reward is reminiscent of another moment in Goldman’s past when the firm sought ways to keep its partners happy. At the end of 2008, after revenue slumped more than 50%, the bank’s leaders granted options that would soar in value if the stock rebounded.
Those millions of options were meant to assuage executives sulking over pay cuts that year. Their value swelled handsomely in the decade after that, with holders reaping more than $3 billion as the stock recovered and shot up.
Goldman’s stock was one of the big winners in the pandemic, climbing 45% last year. But investors have already turned their attention to how the firm will fare in calmer markets, with the price plateauing in recent months. The bank will report fourth-quarter earnings on Jan. 18 and is expected to post a more-than 30% increase in revenue for the year.
--With assistance from Nabila Ahmed.
This article was provided by Bloomberg News.