By Saeed Azhar

NEW YORK (Reuters) -Goldman Sachs shareholders voted to approve pay packages, including hefty retention bonuses, for top executives CEO David Solomon and president John Waldron.

They also voted in favor of other management proposals including the election of the firm's board of directors, according to a preliminary voting count announced during a virtual shareholder meeting in Dallas.

Proxy adviser Glass Lewis had earlier recommended investors cast vote against the compensation plans, citing the bank's "continued inability to align pay with performance," including excessive retention awards of a combined $160 million given to Solomon and Waldron in January.

The bonuses, which vest in five years, are an effort by Goldman's board to retain the senior leaders, the company said in an earlier filing. They also signal Waldron's place as Solomon's likely successor.

CEO succession is in focus across Wall Street. Jamie Dimon has run JPMorgan Chase since 2006, while Brian Moynihan has led Bank of America since 2010.

When awarding the payouts, Goldman's board said the stock awards for Solomon and Waldron were aligned with their performance in creating value for shareholders. The bank's earnings per share rose to $40.54 in 2024, up 77% from a year earlier, driven by a rebound in dealmaking.

The Wall Street firm beat first-quarter profit estimates as Goldman's traders capitalized on volatile markets to bring in record equities revenue.

Speaking at the meeting, Solomon said the economic outlook is uncertain with changes in trade policy top of mind for investors.

"We are hopeful that feedback from companies, large and small, institutional investors and ultimately, consumers, will support an approach that will lead to greater economic certainty and long-term growth," he said.

U.S. stocks were trading higher on Wednesday after U.S. Treasury Secretary Scott Bessent talked about a possible de-escalation in U.S.-China trade tensions, while President Donald Trump backed off from threats to fire the head of the Federal Reserve.

Goldman shareholders voted against all individual shareholder proposals including one that asked to consider eliminating "discriminatory" diversity, equity and inclusion goals for compensation inducements.

Goldman said in its proxy statement, meeting numerical hiring or promotion goals are not among the considerations when the firm decides on compensation for its senior management.

Goldman Sachs in late February dropped an entire section dedicated to "diversity and inclusion" from its annual filing, as Wall Street firms dial back their diversity initiatives after President Trump took charge.

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Earlier, Goldman ended a four-year-old diversity policy that called for the bank to advise companies on IPOs only if they had two diverse board members.

(Reporting by Saeed Azhar, editing by Lananh Nguyen and Nick Zieminski)

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