Reuters – Goldman Sachs is preparing for a possible leadership change, with longtime No. 2 John Waldron emerging as the likely successor to CEO David Solomon.
The Wall Street Journal reported that the investment bank’s board has discussed a plan for Solomon to step down as CEO and hand the job to Waldron, Goldman’s president and chief operating officer.
The transition could happen as early as next year, although Goldman said no timetable has been set.
“Of course the board regularly discusses succession, as we disclose in our filings, but there is no definitive timeline for succession at Goldman Sachs,” spokesperson Tony Fratto said. He described reports about the timing as speculation.
Solomon, 64, has led Goldman since October 2018. Senior executives had previously expected him to serve about 10 years as CEO, which would keep him in the post until around 2028, a person familiar with the matter told Reuters.
Waldron, 57, has long been viewed as his likely successor.
His position became even clearer last year when Goldman appointed him to its board and gave him a retention bonus. Wells Fargo analyst Mike Mayo said the succession has been “unusually telegraphed,” with Wall Street expecting Waldron eventually to take over.
Waldron has served as president and COO since 2018 and oversees the heads of Goldman’s major businesses. He joined the bank in 2000 and became co-head of investment banking in 2014.
A change at the top is not expected to bring a major shift in strategy. Waldron has worked closely with Solomon on Goldman’s push toexpand its core investment banking and trading businesses, as well as wealth and asset management.
Goldman remains a global powerhouse in mergers and acquisitions, ranking as the top M&A adviser for two decades.
Under Solomon, however, the bank also made an unsuccessful push into consumer banking before retreating from the business and selling assets.
Goldman recently beat second-quarter profit expectations as dealmaking recovered and volatile markets during the U.S.-Iran war helped push equities revenue to a record.
According to the Journal, one option under discussion would have Waldron become CEO around the end of 2027 or in 2028, with Solomon staying on as executive chairman for another one to two years.
Any succession plan would still require approval from Goldman’s board, and the timing could change.
