Goldman names CEO to succeed long-serving Blankfein
Goldman Sachs Group named David Solomon as its next CEO on Tuesday, ushering in a new era for the Wall Street bank as it expands into different businesses and revamps familiar ones.
Solomon’s promotion from his current role as president and chief operating officer comes months after the 56-year-old investment banker was first reported as next in line to succeed longtime CEO Lloyd Blankfein. His first day in charge is October 1.
“David is the right person to lead Goldman Sachs,” Blankfein said in a statement.
“He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the centre of our strategy.
“Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realise the next stage of growth.”
The change comes at a turning point for Goldman Sachs, which is trying to generate another $5bn in annual revenue by growing its fledgling consumer bank, squeezing more from businesses like asset management, and changing the way it approaches trading.
Management detailed parts of that plan last September after years of insisting that Goldman’s once-lucrative trading business would come roaring back to life when markets picked up.
Instead, since 2009, Goldman’s annual trading revenue has declined by $20.8bn.
Unlike Blankfein, who rose through the trading ranks to become CEO, Solomon made a name for himself advising corporations on financing and strategy in Goldman’s investment bank. He joined as a partner in 1999 after working in commercial paper, junk bonds and leveraged finance at firms including Salomon Brothers, Drexel Burnham Lambert and Bear Stearns.
Alan Schwartz, executive chairman at Guggenheim Partners, who worked with Solomon at Bear in the 1990s, said he showed natural leadership qualities early in his career.
“David is a very good big picture thinker while at the same time staying on top of all the details,” Schwartz said.
Several Goldman bankers who spoke to Reuters said employees in the business have been celebrating Solomon’s triumph in a long succession race.
Though he was considered a “dark horse” candidate years ago, Solomon managed to outlast a number of rivals, including several from the trading business. Among them are former longtime chief operating officer Gary Cohn, who left Goldman last year for a role in President Donald Trump’s White House, which he has since departed, and former co-chief operating officer Harvey Schwartz, who left the bank in April.
Through most of its history, Goldman has alternated between traders and bankers as CEOs. There is natural tension between the two sides of the house at most Wall Street banks, and Solomon will have to get traders and bankers to co-operate on the revenue growth plan.
DAVID IS A VERY GOOD BIG PICTURE THINKER WHILE AT THE SAME TIME STAYING ON TOP OF ALL THE DETAILS