Goldman Sachs CEO Succession Disrupted by David Solomon’s Tightened Control

David Solomon, the Chairman and CEO of Goldman Sachs, has recently made significant moves to cement his authority over the Wall Street institution, potentially adding complexity to the path of succession, as reported by a media source on Friday.

Over the past year, Solomon has weathered a challenging period, facing scrutiny following the setback of Goldman’s ambitious foray into consumer finance. The bank reeled back from this venture, resulting in significant financial losses.

In a noticeable shift, Solomon has taken a more hands-on approach in the day-to-day operations of the company, as outlined in the Wall Street Journal‘s report that drew on insights from individuals familiar with the matter. Furthermore, Solomon has communicated his intention to remain in his position for the foreseeable future.

John Waldron, aged 54 and serving as the President and Chief Operating Officer of Goldman, had long been viewed as the leading contender to succeed the 62-year-old Solomon. However, competition for the top spot has intensified, with sources suggesting a more open field. Nevertheless, some maintain that Waldron remains a strong candidate for the role.

A notable development highlighted in the article is the establishment of an operating committee under Solomon’s leadership in December 2023. This replaces a similar group previously overseen by Waldron. While Waldron remains a member of the new committee and retains an influential role, the dynamics within the organization have notably shifted, according to the WSJ.

Last week, Goldman Sachs (NYSE:GS) underwent a reorganization of its management committee, instituting two new entities responsible for overseeing investment banking and markets, as detailed by the WSJ.

Amidst this backdrop, the retirement of Jim Esposito, the former co-head of Global Banking & Markets, has triggered speculation regarding potential successors, with Marc Nachmann and the co-heads of Global Banking & Markets, Dan Dees and Ashok Varadhan, emerging as contenders for senior positions.