Goldman Sachs Cuts CEO Pay Over Financial Scandal

Goldman Sachs Cuts CEO Pay Over Financial Scandal
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Goldman Sachs Cuts CEO Pay Over Financial Scandal
Goldman Sachs Group Inc slashed David Solomon, the Chief Executive Officer, pay due to punishment for a major financial scandal that he was overseeing. David Solomon received seventeen million five hundred thousand dollars a compensation package down from twenty-seven million five hundred thousand the previous year (Rae, 2021). Solomon's pay would have been higher, but the board of directors decided to respond by cutting down his pay due to his scandalous actions. The cuts are part of a broader attempt by the bank to get back millions in pay from previous and present executives as part of the consequences. This is one of the biggest scandals that stained the company's reputation when American banks were still handling their reputation over criminal accusations. The CEO should receive a pay cut for overseeing a significant scandal because it is part of the penalty. Also, the pay cut money will be used to bring the company back to its reputation even if the scandal was massive.
The top management turned a blind eye to the bribery and fraud scandal to secure the company's income for the bond placement. The company's top management was ignorant in every way because the company is huge, and they have professional auditors who are meant to detect any misconduct and take action from there. The leadership displayed in Goldman Sachs is not recommendable as they failed to develop a culture that comprises ethical views to address the issue that brought about the scandal. There is no way that a large sum of money can be used freely without the auditors noticing anything. Most executives in a company are all about personal gains and not the company's success. The executives of Goldman Sachs failed the company by not reporting the bribery. The company's executives managed to ruin the company's reputation, brought about damaged fina...