Goldman Sachs CEO succession planning faces one big problem
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In this article Goldman Sachs is on top of Wall Street right now, advising on more than $1 trillion in merger deals and generating more than $12 billion in equities revenue in the first six months of the year alone. Those records make it all the more striking that Goldman's board has reportedly discussed replacing CEO David Solomon, 64, with president John Waldron, 57, as early as next year. The succession plan, which would elevate Solomon to executive chairman, could be voted on by the bank's board in coming months, The Wall Street Journal reported late Monday. The transition would be one of the "smoother and more deliberate" leadership handovers seen on Wall Street, Wells Fargo banking analyst Mike Mayo wrote Monday. But there's a key risk facing Goldman: Solomon may not be ready to give up his seat, and Waldron may not be willing to wait for it indefinitely. Solomon has gotten Goldman back on track after an ill-fated foray into consumer banking earlier in his tenure. With help from a deals rebound powered by the Trump administration and the artificial intelligence boom, Goldman is once again a clean story for investors: It's the top pure-play investment bank. "It's just very hard for a person like that to decide they are really going to retire," said retired University of Delaware law professor Charles Elson. "Being 65 years old today is like being 55 was 30 years ago."...
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