Goldman Sachs chief executive Lloyd Blankfein faced a cut in pay of $1m last year as the investment bank struggled to lift its returns closer to pre-financial crisis levels.

Mr Blankfein, who has led the Wall Street bank since 2006, earned total compensation of $22m last year, according to a filing with US securities regulators.

Much of Mr Blankfein’s pay came in the way of a cash bonus and stock-based compensation. He earned a $2m salary, a $4m cash bonus and $16m in stock units that are based on hitting certain performance targets.

Goldman’s stock surged almost 33 per cent last year amid a rebound in the company’s trading revenues, along with expectations that President Donald Trump will loosen regulations on the financial sector.

However, the bank has struggled to lift its return on common equity following the 2008 financial crisis. ROE clocked in at 9.37 per cent last year, according to Bloomberg data, up from 7.47 per cent in 2015, but still well below the 31.52 per cent rate in 2007.

In scaling back its chief’s pay, Goldman is echoing Citigroup, which cut Michael Corbat’s package to $15.5m. Citi has yet to live up to financial goals Mr Corbat set out soon after he became CEO.

The reductions at Goldman and Citi stand in contrast to Bank of America, which handed its chairman and chief executive Brian Moynihan a 25 per cent rise, to $20m. Bank of America said Mr Moynihan’s pay award reflected the bank’s performance.

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