SAN FRANCISCO – Goldman Sachs cut its CEO David Solomon’s 2020 salary by US$10 million (RM41 million) to US$17.5 million because of the bank’s role in the 1Malaysia Development Bhd (1MDB) scandal, according to documents filed yesterday.
“The amounts of remuneration reflect the decision announced by the board of directors,” said a securities filing that also detailed pay cuts for COO John Waldron and CFO Stephen Scherr.
Although the three were not “aware of the firm’s participation in any illicit activity at the time the firm arranged the 1MDB bond transactions, the board views the 1MDB matter as an institutional failure”, it said.
Goldman Sachs pleaded guilty in October over its role in the scandal, and agreed to pay nearly US$3 billion to close US investigations.
Former prime minister Datuk Seri Najib Razak was sentenced last year to 12 years’ jail on corruption charges linked to the scandal that led to the downfall of his government.
His stepson, Riza Aziz, also allegedly received huge sums from 1MDB, including to bankroll his Hollywood production company, which made The Wolf of Wall Street, starring Leonardo DiCaprio.
However, he was discharged not amounting to an acquittal (DNAA) on May 14 last year of five money-laundering charges linked to the scandal. – AFP, January 27, 2021
