Up to 20 of Goldman Sachs' most senior bosses stand to share a bonus pot of as much as $500m (£378m), among the largest payouts the bank has ever made. Chief executive David Solomon is set to take roughly $100m (£75.6m) of the reward, which is paid in Goldman Sachs stock.

How the $500m bonus pot works

The $500m bonus pot is the culmination of a long-term investment plan the bank first put together in 2021. The final sum, due to be confirmed later this month, hinges on two measures: how far Goldman's share price has climbed over the past five years, and how its stock has fared against rivals such as JP Morgan and Bank of America.

The backdrop to those measures is strong. Goldman Sachs stock has surged roughly 146% over the past five years, and has climbed about 300% since Solomon took the helm.

Solomon's $100m and the other executives in line

Solomon's award is worth more than double the record $47m (£35.5m) annual pay packet he was granted last year.

He is not the only beneficiary. President John Waldron, widely expected to succeed Solomon as chief executive, is also in line for a payout, as are Ashok Varadhan and Dan Dees, the co-heads of global banking and markets.

Why the bank says it is paying up

Goldman Sachs said the long-term incentive award was designed to persuade bosses to stay at the bank "in an increasingly competitive market".

A bank spokesperson said the board created the awards to align compensation with performance thresholds, ensure leadership continuity and enhance retention, adding: "It's no secret our firm has performed exceptionally well in the years since."

How it compares on Wall Street

The Goldman bonuses sit well above rival banks' annual chief executive pay packages:

• •Citigroup said earlier this year that chief executive Jane Fraser was paid a record $42m (£31.8m) for 2025.
• •JP Morgan's Jamie Dimon received a total package of $43m (£32.5m) last year, up 10% from a year earlier.
• •Dimon's own long-term incentive award is worth about $270m (£204.1m), according to Bloomberg.

News of the bonus comes days before Goldman is due to report third-quarter earnings on 13 October, and the final sum of the payout is due to be confirmed later this month.