What's Going On With Goldman Sachs and What's The Sentiment for CEO David Solomon?

Goldman Sachs Inc GS CEO David Solomon has recently hit the headlines, facing internal opposition and adverse media coverage. Despite this turbulence, he continues to enjoy the confidence of the bank's board members and key shareholders.

2022, particularly challenging for Solomon, marked his fifth year leading the financial giant, the Financial Times reports.

Also Read: Goldman Sachs Sees Significant Upside From ChatGPT Frenzy Amid Odds - Only Caveat: Government Policy

Individuals acquainted with the board's sentiments, which convened for a summer gathering in India, expressed that most members still support Solomon, choosing to disregard what they view as undue external influence. 

Describing the board as predominantly patient, these insiders believe that the directors tend not to succumb easily to external pressures.

Key investors echo this sentiment. While some internal factions might find Solomon's leadership style controversial, he has earned accolades for his work for the shareholders. 

One significant stakeholder humorously likened the staff's dissent to the historical turbulence faced by Peru, suggesting that such resistance would eventually ebb, given the bank's robust performance. 

In addition, Solomon's proactive approach to engaging investors, a significant departure from his predecessors, has been appreciated, indicating a more transparent, shareholder-friendly process.

Even as some critics blame Solomon for the bank's short-lived venture into retail banking, initiated by former CEO Lloyd Blankfein, some shareholders respect Solomon's acknowledgment of this misstep and his consequent decision to downsize the operation.

Also, Goldman Sachs is exploring the sale of a part of its wealth business catering to high-net-worth clients.

The Wall Street bank is evaluating alternatives for its registered investment adviser unit, Personal Financial Management (PFM).

Goldman's private wealth unit oversees $1 trillion in assets for ultra-high-net-worth clients.

Goldman bought the registered investment adviser, formerly United Capital Financial Partners, for $750 million in 2019.

The potential divestment comes after CEO David Solomon reorganized the firm into three units in 2022. Its fintech business, GreenSky, is also for sale.

Price Action: GS shares traded lower by 0.12% at $324.53 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.