Goldman Sachs' board has reportedly discussed a plan for Chief Operating Officer John Waldron to take over as CEO, replacing David Solomon, as early as next year. This follows a report from last year that the board offered Waldron $80 million to remain with the company for the top job. Waldron, 57, has long been seen as the likely successor to Solomon, 64, who became CEO in October 2018 and was previously expected by senior staff to serve a 10-year term, until 2028.
The proposed succession plan, as reported by the Wall Street Journal, could see Waldron assuming the CEO role in late 2027 or 2028. Under this arrangement, Solomon would transition to an executive chairman position for one to two years after stepping down as CEO. While the exact timeline is fluid, board approval could happen in the coming months. Tony Fratto, Goldman's global head of communications, stated that while the board regularly discusses succession, there is no definitive timeline, and any assertions about timing are speculation.
Analysts like Wells Fargo's Mike Mayo noted that Goldman Sachs' succession has been "unusually telegraphed," with Waldron's ascension anticipated since he received a retention bonus and was appointed to the board last year. Waldron, who has been president and chief operating officer since October 2018 and oversees the bank's main divisions, is not expected to significantly alter the firm's strategy, as he and Solomon have worked closely in driving the bank's priorities. Goldman Sachs recently exceeded second-quarter profit expectations due to increased dealmaking and market volatility, which boosted equities revenue to a record high.
