Oct 8, 2026 · 29 min
Goldman’s bonus plan tests pay for performance
Goldman’s Top Leaders Set to Score More Than $500 Million With Special Bonus
The proposed awards put executive compensation under scrutiny while consumer brands confront weaker demand, costly missteps, and changing tastes.
- 1Goldman Sachs is considering more than $500 million in special equity awards for roughly 20 senior executives, tied to performance benchmarks.
- 2PepsiCo’s international strength contrasts with weaker North American soda and snacks demand as consumers economize and costs rise.
- 3Levi Strauss and Lululemon are trying to recover from fashion misjudgments, product issues, and leadership challenges affecting growth.
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The sharpest contrast comes when Goldman’s proposed awards are weighed against the consumer brands’ struggle to read changing demand and fashion preferences.
The brief
Sridhar Natarajan and Paul Sweeney examine Goldman Sachs’s proposed special equity awards for roughly 20 senior executives, potentially exceeding $500 million, and the stock gains and benchmarks behind them.
The Goldman discussion revisits the return of long-term incentive awards after the financial crisis, raising questions about how performance justifies exceptional executive compensation.
PepsiCo’s stronger international results cannot offset weaker North American soda and snacks demand, while pricing, costs, economizing consumers, and possible tariffs complicate the outlook.
Levi Strauss’s slowing direct-to-consumer growth is linked partly to a back-to-school campaign built around loose jeans rather than the more popular low-rise style.
Lululemon’s new CEO faces a product and brand reset after changing fashion preferences, a problematic Disney collection, logo-heavy designs, and the see-through leggings issue.