This is the type of commercial development candidates are expected to analyse in training contract and vacation scheme applications. We explain how to approach more stories like this in our Commercial Awareness hub.

Goldman Sachs, after a strong financial performance the past year, paid its CEO - David Solomon - $47 million for 2025. This is over a 20% increase from his remuneration in 2024, and primarily constitutes stock ($31 million). Whilst this increase in pay roughly mirrors Goldman Sachs 20% increase in profitability from 2024, it vastly exceeds the 13% rise in spending for overall staff compensation.

Executive pay at investment banks, and indeed many large companies, has always been distinct from traditional salary and bonus models. However, remuneration amounts at this range are fully tearing away from regular conceptions of salaried compensation, and is as such becoming a more politically sensitive area. The wide gap between CEO remuneration and average employee pay may soon attract greater regulatory attention in light of public criticism.

What are the key takeaways of this shift in remuneration?

• Banks are aligning more with asset management / private equity industry standards

• Shareholders may become dissatisfied with the extent to which executive pay outstrips staff compensation, as this eats into their own earnings

• Regulatory and public pressure is bound to continue as this sort of rise in remuneration reveals an alarming pattern

Knowing the story isn’t enough. In applications and interviews, firms expect you to explain why this matters commercially and how it affects clients. The Commercial Awareness Starter Pack shows you exactly how to do this using a simple, repeatable framework.