Goldman Sachs Board Weighs CEO Succession Plan, Waldron in Line

Goldman Sachs' board of directors has discussed a plan for CEO David Solomon to step down and be replaced by Chief Operating Officer John Waldron, according to people familiar with the matter. The discussions have involved Waldron taking over around the end of 2027 or in 2028, though the timing could change and would require board approval.

A Goldman spokesperson said, "Of course the board regularly discusses succession, as we disclose in our filings, but there is no definitive timeline for succession at Goldman Sachs. Any assertions about timing are just speculation."

Solomon, 64, who became CEO in October 2018, had been expected by senior staff to serve a decade in the role, potentially until 2028, a source familiar with the matter said. Waldron, 57, has been seen as his likely successor, especially after being appointed to the board and awarded a retention bonus last year.

Wells Fargo analyst Mike Mayo noted that Goldman's succession has been "unusually telegraphed" and that Waldron's ascension has been anticipated since the retention bonus. Mayo added that Waldron is unlikely to change the bank's strategy, as he and Solomon have been driving Goldman's priorities together.

Waldron has been president and chief operating officer since October 2018 and oversees the leaders of the bank's main divisions. He previously served as co-head of investment banking from 2014 after joining Goldman in 2000.

Goldman Sachs, a top-ranked mergers and acquisitions adviser for two decades, has focused on growing its global banking and markets division and wealth and asset management. The firm exceeded second-quarter profit expectations as dealmaking picked up and market volatility boosted equities revenue to a record. Solomon significantly scaled back the firm's consumer banking operations after its retail foray flopped.

CEO succession is a key focus for investors across Wall Street, with attention also on JPMorgan Chase's Jamie Dimon and Bank of America's Brian Moynihan. Goldman shares were little changed in after-hours trading.