Goldman Sachs Group Inc GS confirmed Tuesday it has appointed President and co-COO David Solomon to succeed Lloyd Blankfein as CEO and chairman of the board.
The transition had been expected since Solomon first seized sole company presidency in March, but a formal announcement hadn't been anticipated until the fall.
Who Are These Guys?
Blankfein has topped Goldman Sachs since 2006 and led the firm to record earnings. Just ahead of his retirement announcement, he posted a 30.6-percent bottom-line beat and 8.9-percent top-line beat.
However, he expressed confidence in the company’s prospects under Solomon.
“David is the right person to lead Goldman Sachs,” Blankfein said in the press release. “He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy. Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realize the next stage of growth.”
Solomon will be charged with reviving a struggling securities trading unit and overseeing a three-year plan introduced last year to boost the bank’s revenue by $5 billion.
Solomon's Background
His experience includes a decade as global co-head of Goldman’s investment banking division, an early Goldman partnership and management at Bear Stearns. Solomon has led the firm’s technological revolution, restructured sales and expanded the young consumer bank division.
He will rise after years of internal preparation.
“The Board has been engaged in a multi-year succession process, and we are confident that David will build off the firm’s strong financial, risk management and franchise position,” Adebayo Ogunlesi, lead director of the board, said in the announcement. “His drive, focus on our clients and effective management skills will be critical strengths as he charts the firm’s strategy in the years to come.”
What’s Next?
Blankfein will step down as CEO Sept. 30 and retain his leadership on the board until the end of the year. Upon retirement, he will become senior chairman.
Solomon will join the board Oct. 1.
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