Goldman Sachs' board has reportedly discussed a plan to formally name John Waldron as the firm's next Chief Executive Officer, confirming a widely anticipated succession plan. This move would cement Waldron, currently the president and chief operating officer, as the successor to current CEO David Solomon. The discussions follow a period where Goldman took significant steps to retain Waldron, including an $80 million retention bonus and a seat on the board of directors.
Waldron's elevated status and the board's discussions come after he was reportedly courted by Apollo Global Management with a lucrative offer, potentially worth several hundred million dollars over a few years, and even up to $500 million. Goldman's response to this poaching attempt included not only the $80 million retention bonus, which vests over five years, but also a salary increase that positions him above many other corporate CEOs, and expanded access to the bank's private jet.
Analysts like Stephen Biggar of Argus Research view these actions as clear indications that "firmer succession planning is underway." Waldron, 55, has been president and COO since October 2018 and oversees the bank's three main divisions. His addition to the board means he and Solomon, 63, are the only members of the management committee with board seats. This strategic move aims to lock down Waldron for the foreseeable future, despite the potential challenge of retaining other top executives who may now view the CEO position as out of reach.
The timing of Waldron's eventual takeover from Solomon is not immediate, with Solomon also having an $80 million retention bonus tied to a five-year vesting period. While Solomon could transition to an executive chairman role, no change is expected within the next two to three years. The succession planning is seen as a victory for Solomon, who has reasserted control after a challenging period, allowing him to groom his preferred successor and close friend, John Waldron, to lead Goldman Sachs into the next generation.
