By Saeed Azhar
NEW YORK, Sept 28 (Reuters) – John Waldron has long been seen as successor to Goldman Sachs CEO David Solomon. The question was when the transition would happen.
The Wall Street Journal reported on Monday that the investment bank had discussed a plan for Solomon to step down as CEO and be replaced with Chief Operating Officer Waldron as soon as next year, citing people familiar with the matter.
“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,” Tony Fratto, Goldman’s global head of communications, said in a statement.
Solomon, 64, had been expected by senior staff to do 10 years in the CEO role, meaning he would likely stay in the position until 2028, a source familiar with the matter told Reuters on Monday. He was named CEO in October 2018.
CEO succession has become a key focus for investors across Wall Street. At JPMorgan Chase, attention has centered on when Jamie Dimon may step aside, while investors have also monitored leadership planning at Bank of America under Brian Moynihan, one of the longest-serving chiefs among major US banks.
Waldron, 57, has been expected to take over the reins from Solomon, sources familiar with the matter have said previously. His standing was further reinforced last year when he was appointed to the board and awarded a retention bonus.
Wells Fargo analyst Mike Mayo said Goldman Sachs’ succession has been ‘unusually telegraphed’ and Waldron’s ascension has been expected since last year, when he was awarded the retention bonus.
It is unlikely that Waldron changes the bank’s strategy devised by Solomon.
“They have been driving Goldman’s priorities together,” Mayo said.
OVERSEEING LEADERS OF BANK’S MAIN DIVISIONS
The Wall Street bank, which has been the top-ranked mergers and acquisitions adviser for two decades, has focused on growing its global banking and markets division, and wealth and asset management.
Goldman Sachs exceeded second-quarter profit expectations as dealmaking picked up and market volatility amid the US-Iran war boosted equities revenue to a record.
Solomon significantly scaled back the firm’s consumer banking by shedding assets after its foray into retail banking flopped.
Waldron, who has been president and chief operating officer since October 2018, oversees the leaders of the bank’s main divisions. He previously served as co-head of investment banking, a role he assumed in 2014 after joining Goldman in 2000.
Goldman shares were little changed in after-hours trading.
According to the WSJ report, discussions have involved Waldron taking over around the end of 2027 or in 2028.
Under the plan, Solomon would remain executive chairman for one to two years after stepping down from the CEO role, the report said.
The proposal would require approval from the bank’s board, and its timing could change, it said. The report added that approval could happen in the coming months.
(Reporting by Saeed Azhar and Mrinmay Dey in Mexico City; additional reporting by Tatiana Bautzer, Editing by Shilpi Majumdar, Megan Davies and Muralikumar Anantharaman)
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