Goldman Sachs is considering a succession plan that could see president John Waldron replace chief executive David Solomon as early as next year, with Solomon moving into the role of executive chairman.
The proposal has reportedly been discussed by the bank’s board and could be put to a vote in the coming months. Goldman Sachs spokesman Tony Fratto said there was “no definitive timeline for succession”, adding that boards routinely consider leadership planning over the near, medium and longer term.
Any change would come as Goldman enjoys a strong run of performance. The bank has advised on more than $1 trillion of merger deals and generated more than $12 billion in equities revenue during the first six months of the year.
Solomon, 64, became chief executive in 2018 and has helped steer Goldman away from an unsuccessful push into consumer banking. The bank has since benefited from a recovery in dealmaking, helped by the Trump administration and the boom in artificial intelligence.
Its shares have risen by more than 300 per cent during Solomon’s tenure, according to Wells Fargo banking analyst Mike Mayo. That was the second-best performance among the banks in the KBW Bank Index, behind JPMorgan Chase, whose chief executive Jamie Dimon has led the firm for nearly 21 years.
Mayo described the proposed handover as potentially one of the “smoother and more deliberate” leadership transitions on Wall Street.
Goldman Sachs succession plan faces uncertainty
The plan could nevertheless face difficulties if Solomon is unwilling to surrender the chief executive’s role, or if Waldron decides he is not prepared to wait indefinitely.
Charles Elson, a retired University of Delaware law professor, said Solomon could have little incentive to announce his departure in advance because doing so could reduce his influence inside the bank by making him a lame duck.
Elson also noted that Solomon chairs Goldman’s board and retains significant influence over it. “It’s just very hard for a person like that to decide they are really going to retire,” he said. “Being 65 years old today is like being 55 was 30 years ago.”
Jeffrey Sonnenfeld of Yale School of Management said it would represent poor governance if the board were attempting to “drive out a high performing CEO like David Solomon”.
Waldron, 57, is Goldman’s president and chief operating officer and has reportedly held discussions about leadership positions at alternative asset managers Apollo and Carlyle.
Goldman awarded him an $80 million retention package running through 2030. Elson said a wealthy rival could still attempt to recruit him, particularly if Solomon chooses to remain in charge while he believes the artificial intelligence boom is still in its early stages.
“There will always be tension in a set up like that,” Elson said. “It’s like Prince Charles waiting for his mother to die. You can’t set your own priorities, because there’s someone else in charge.”
