Last week, Goldman Sachs disclosed in a regulatory filing that CEO David Solomon’s annual compensation for 2020 was reduced by $10 million because of the failures, penalties, and costs incurred within the 1MDB scandal. The bank incurred more than $5 billion worth of regulatory penalties last year, which some might consider $5 billion in losses for shareholders. Solomon was thus penalized, along with other senior leaders at the bank.
The penalties were imposed pursuant to anti-money laundering failures connected to the infamous fraud perpetrated against the Malaysian government. It is alleged Goldman Sachs managers played proactive roles in facilitating the fraud and laundering the proceeds. Criminal charges have been filed against two managers, and millions in bonuses previously paid have since been forfeited.
