Goldman Sachs’ board spent months mapping out a leadership transition, and the blueprint centered on one executive who has been waiting for years, the Wall Street Journal reported.
President and Chief Operating Officer (COO) John Waldron would succeed Chief Executive Officer (CEO) David Solomon as early as late 2027 under the board’s plan. That handoff has stalled because Solomon told senior executives he plans to remain as chief executive for a while.
Tony Fratto, Partner and Global Head of Communications of Goldman Sachs, disputed the framing, telling the Journal that Solomon has never indicated a timeline for his departure.
Both executives hold identical $80 million restricted stock awards that do not vest until January 2030, locking them in place while the succession question lingers, Goldman Sachs Form 8-K filing showed.
The standoff raises a key question: who will lead the bank, and when? Mike Mayo, Wells Fargo Securities’ head of U.S. large-cap bank research, flagged the issue in a research note reported by TipRanks.
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Goldman Sachs’s board planned a Waldron takeover that Solomon put on hold
The succession blueprint, detailed in the Wall Street Journal, centered on naming Waldron chief executive by late 2027 or during 2028. Solomon would shift to the executive chairman role for a year or two while Waldron took operational control.
Margot McShane, co-leader of the Global Board and CEO Advisory Practice at Russell Reynolds Associates, told Fortune that transitions from chief executive to executive chairman only succeed when the departing leader keeps personal ambitions in check.
<strong>The watch-outs are that this only works when the outgoing CEO becoming an executive chair has their ego in check</strong>
Waldron’s appointment to Goldman’s board of directors in February 2025 reinforced that plan and his standing as the presumptive next leader, Goldman Sachs announced.
“It does appear that firmer succession planning is underway,” Stephen Biggar, Product Strategy and Director of Financial Services Research at Argus Research, told Reuters.
Solomon’s decision to signal he wants to stay has undercut that momentum, and Waldron remains in the number-two role after eight years, according to Goldman’s 2025 filing.
Goldman’s record earnings make it harder to replace Solomon
Goldman under Solomon has posted consecutive record earnings and a fourfold stock increase, results that analysts say weaken the case for a near-term leadership change, Banking Dive reported.
The bank reported $14.28 billion in net earnings and $53.51 billion in net revenues for the full year 2024, its second-highest results on record, according to Goldman Sachs 2024 earnings results.
Record revenues in equities, investment banking fees, and management fees powered those results, while assets under supervision reached $3.14 trillion by year-end.
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Goldman shares traded at approximately $232.05 when Solomon became chief executive in October 2018, Fortune reported at the time.
Mayo has been among the most vocal observers of Goldman’s leadership dynamics during Solomon’s tenure. The board remained firmly behind Solomon, and the chief executive would likely stay “for at least the medium term,” Mayo said in a Wells Fargo research note reported by TipRanks.
Goldman’s record earnings under Solomon give the board what Mayo called a clear reason to maintain the current leadership structure well beyond the original transition window.
Waldron still has no public timeline for taking on the top job, despite being widely viewed as the expected successor since Solomon took over, Banking Dive reported.
The Carlyle courtship showed Waldron’s patience had limits
Waldron nearly left Goldman once before, and that near-departure makes the current waiting game far more precarious for the board.
Carlyle Group approached Waldron in 2022 about becoming its Chief Executive Officer after Kewsong Lee stepped down, the Wall Street Journal reported.
Waldron informed Solomon of the discussions and was persuaded to stay, with senior figures reportedly suggesting that the path to chief executive remained open.
Carlyle ultimately hired Harvey Schwartz, former Goldman President and Co-chief Operating Officer, for the top job, and Waldron remained at Goldman in his current position, Fox Business reported.
Solomon also received approximately $30 million and Waldron $20 million in restricted stock grants in October 2021, Banking Dive reported.
What investors are watching for clarity on Goldman’s succession
Whether Waldron will continue waiting while Solomon holds the top job is the central variable for investors tracking Goldman’s leadership stability, Mayo’s analysis indicated.
The succession plan, the Wall Street Journal reported, remains unresolved, and board support for Solomon does not guarantee Waldron will stay patient through the decade.
The Board granted both retention packages to “help ensure stability and continuity in our senior leadership over the next five years and maintain a strong succession plan for the future of the firm,” the Form 8-K filing stated.
Goldman’s next proxy filing in early 2027 could determine whether the board formalizes Solomon’s departure or accepts the growing risk of losing Waldron, Mayo indicated.
