Goldman succession reportedly offers less drama but more risk
GS•Goldman Sachs’ board is nearing a decision to name COO John Waldron as CEO, reportedly, with David Solomon expected to leave the top job 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 COO John Waldron as the firm’s next chief executive. Solomon is expected to leave the top job as soon as the end of next year. Waldron has long been viewed as his heir apparent, and Goldman awarded him an $80 million retention package last year.
2. Risks of a long handoff
Solomon is likely to stay on as executive chair for as long as two years. The article notes that extended leadership overlap can create complications, while Morgan Stanley’s transfer of power, in which James Gorman left the chair role after a year, is offered as a more attractive template.
3. Solomon’s record
Solomon was under pressure after Goldman’s consumer-banking expansion stumbled, but he refocused the firm on investment banking. Goldman’s stock price quadrupled under Solomon, compared with returns of 52% under Lloyd Blankfein and 112% under Henry Paulson.
