Goldman succession offers less drama but more risk
GS•Goldman Sachs’ board is reportedly nearing a decision to name COO John Waldron as CEO, with David Solomon expected to leave the role as soon as the end of next year. Solomon may remain executive chair for up to two years.
1. Waldron seen as successor
Goldman Sachs’ board is nearing a decision to name Chief Operating Officer John Waldron as the firm’s next CEO, reportedly. Solomon is expected to leave the top job as soon as the end of next year. Waldron has long been viewed as Solomon’s heir apparent, and Goldman awarded him an $80 million retention package last year.
2. A lengthy handoff carries risks
Solomon is likely to stay on as executive chair for as long as two years. The article says extended overlap periods can create complications, citing Bob Iger’s transition to executive chair at Disney and James Gorman’s departure from Morgan Stanley’s chair role after a year.
3. Solomon’s record
Solomon was under pressure several years ago after Goldman’s consumer-banking expansion stumbled, but later refocused on the investment bank’s core strengths. The article says Goldman’s stock price quadrupled under Solomon, compared with returns of 52% under Lloyd Blankfein and 112% under Henry Paulson.
