Waldron Set to Torch Goldman Sachs in 2027 or 2028

Goldman Sachs' Board Has Discussed a Plan to Name John Waldron as Its Next CEO

According to sources close to the matter, Goldman Sachs' board of directors is quietly finalizing a succession plan that would elevate Chief Operating Officer John Waldron to chief executive.

The Blueprint for Succession

The plan, which has been discussed by the board, sees Waldron assuming the top job in late 2027 or 2028. David Solomon, who has led the bank since 2018, would step down as soon as next year and be executive chair.

A Decade of Turbulence

Solomon, 64, has weathered a turbulent stretch marked by partner defections, internal grumbling over his side gig as a DJ, and a disastrous foray into consumer lending. That retail banking experiment cost the firm roughly $7 billion before Goldman retreated.

A Legacy of Growth

By ditching the consumer business and refocusing on Goldman's traditional Wall Street golden geese such as dealmaking, trading, and wealth management, he pushed the bank's stock to record highs. The price of the Wall Street giant's shares has quadrupled since Solomon took command in October 2018.

The Heir Apparent

Waldron, 57, has served as president and COO since 2018 and has long been the heir apparent. After Waldron engaged in serious talks to lead Apollo Global Management and Carlyle in recent years, Goldman moved aggressively to retain the master dealmaker with an extensive network of corporate and government relationships around the world.

A High-Stakes Leadership Shuffle

His impending promotion will trigger a high-stakes leadership shuffle. Finance Chief Denis Coleman has already begun absorbing Waldron's operational duties, and Coleman now oversees human resources and a major artificial intelligence initiative dubbed 'OneGS 3.0' designed to boost internal productivity.

The Board's Delicate Balancing Act

More critically, Waldron's ascension opens the firm's presidency. The board faces a delicate balancing act to fill the No. 2 role without losing star executives who miss out on the title. Top contenders include Marc Nachmann, who spearheads the pivotal asset and wealth management division, alongside the co-heads of global banking and markets, Ashok Varadhan and Dan Dees.

A Goldman Sachs spokesperson pushed back on the reported timeline, saying: '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.'

Our Read:

The succession plan is a significant development for Goldman Sachs, marking a new chapter in the bank's leadership. The board's decision to elevate Waldron to CEO will have far-reaching implications for the firm's operations and strategy. The plan's focus on retaining key executives and maintaining the bank's traditional strengths suggests a commitment to stability and growth.

However, the board's delicate balancing act in filling the No. 2 role raises questions about the potential for internal power struggles and the impact on the firm's culture. The next development in this story will be the official announcement of Waldron's promotion and the subsequent leadership shuffle within the bank.

Confirmed Facts:

• Goldman's Board Has Discussed a Plan to Name John Waldron as Its Next CEO

Attributed Facts:

• The plan sees Waldron assuming the top job in late 2027 or 2028
• David Solomon would step down as soon as next year and be executive chair
• The board faces a delicate balancing act to fill the No. 2 role without losing star executives who miss out on the title

What to Watch:

The next development in this story will be the official announcement of Waldron's promotion and the subsequent leadership shuffle within the bank. The impact of the succession plan on Goldman Sachs' operations and strategy will be closely watched by investors and industry observers. The board's decision to elevate Waldron to CEO will have far-reaching implications for the firm's future direction and growth prospects.