GS Stock Today: January 24 CEO Pay Hike to $47M Tops JPM’s Dimon

Goldman Sachs CEO pay moved into the spotlight as the board set David Solomon’s 2025 total compensation at $47 million, up 20.5% from a year earlier. The package tops JPMorgan chief Jamie Dimon’s $39 million. For investors in Japan, the decision raises questions about cost discipline, performance alignment, and near-term impact on Goldman Sachs (GS) stock. We break down the package, compare peers, assess valuation and technicals, and outline the key dates and indicators to watch before April earnings.

David Solomon’s 2025 package in focus

Goldman Sachs set David Solomon’s 2025 compensation at $47 million, including a $2 million base salary and $45 million in variable pay. The bulk is performance-linked awards with multi-year vesting tied to shareholder outcomes and risk controls. The board cited recent profit improvements and market share gains in core businesses as rationale. Coverage: Reuters via Yahoo Japan.

The figure exceeds JPMorgan’s Jamie Dimon, whose 2025 compensation is reported at $39 million. That peer context matters for investor expectations across large U.S. banks as boards align pay with results and retention. For perspective and ongoing coverage of the comparison, see Newsweek Japan.

Performance share units and restricted stock typically include multi-year hurdles around return metrics and risk outcomes. For shareholders, the design aims to tie pay to durable value creation rather than short-term swings. Investors should review the proxy for vesting conditions, clawbacks, and relative performance tests, which influence dilution, buyback needs, and the compensation-to-revenue trajectory over time.

Investor takeaways for Japan

As executive awards rise, we will watch compensation and benefits expense versus net revenue. The compensation ratio trend, especially through 2025, will signal operating leverage. For context, GS posted net profit margin of 13.73% and return on equity of 13.81% TTM. Any shift in variable compensation accruals could influence quarterly margins and capital allocation decisions.

GS paid $14.00 per share in dividends TTM, a 1.52% yield, and reduced the average share count by about 3.73% year over year, supporting EPS growth. With payout ratio at 28.92%, buybacks remain a key lever. We will track repurchase pace relative to earnings, compensation stock issuance, and tangible book value growth.

Japan-based investors face USD exposure when holding U.S.-listed GS shares. Portfolio outcomes depend on both stock performance and USD/JPY moves. Consider hedged or unhedged approaches and check brokerage access to U.S. markets. For domestic allocation, compare GS exposure against existing financial holdings and ensure diversification across sectors and geographies.

GS stock snapshot and valuation

GS last traded at $954.65, within a 52-week range of $439.38 to $984.70. It is up 43.70% over 1 year and 22.40% over 3 months. RSI is 66.60 and ADX is 35.12, indicating a strong trend, while CCI at 142.93 signals overbought conditions. Price sits above the upper Bollinger band of 947.41, suggesting near-term stretch.

GS trades at 16.74x TTM earnings and 2.30x book value, with net profit margin at 13.73% and ROE at 13.81%. The stock is above its 50-day average of 873.548 and 200-day average of 733.6031. Dividend yield is 1.52%. Shares outstanding total 302,721,091, supporting liquidity for institutional and retail orders.

Analysts are mixed: 10 Buy, 11 Hold, 1 Sell, implying a Hold-leaning consensus. One independent framework rates the company B- with a Sell view due to leverage metrics, while a composite stock grade shows B+ with a BUY suggestion. Divergent signals argue for careful sizing and ongoing risk monitoring.

Key dates and watchlist

Goldman Sachs is scheduled to report on 2026-04-13 at 04:00 UTC, which is 13:00 JST. Management commentary on investment banking pipelines, trading conditions, and expense control will be central, alongside any updates to capital returns, credit costs, and risk-weighted asset plans through 2026.

Key drivers include advisory fees from M&A, equity and debt underwriting volumes, FICC and equities trading revenue, asset management flows, and compensation ratio trends. Watch buyback cadence, dividend policy, and any regulatory commentary on executive pay structures, which could influence sentiment and valuation multiples.

Near-term modeling shows monthly baseline at $961.08, quarterly at $840.96, and yearly at $770.24. Longer horizons project 3-year at $934.32, 5-year at $1,097.11, and 7-year at $1,261.19. Use these as directional inputs, not guarantees. Revisit assumptions after each earnings print and adjust for revenue mix and capital return updates.

Final Thoughts

Goldman Sachs CEO pay at $47 million highlights a stronger performance stance and a tighter link to long-term awards. For investors in Japan, the core questions are practical: will compensation stay aligned with revenue growth, can margins expand while funding variable pay, and will buybacks offset stock grants. GS trades above key moving averages with strong momentum, but technicals point to an overbought zone. Valuation sits at 16.74x TTM earnings and 2.30x book with a 1.52% yield, supported by improving profitability. Ahead of the April earnings date, track the compensation ratio, advisory pipelines, trading revenue, and capital return pace. Position sizes should reflect USD exposure, leverage considerations, and the mixed but constructive ratings backdrop.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.