Goldman Sachs is currently dominating Wall Street, advising on over $1 trillion in merger deals and generating more than $12 billion in equities revenue in the first half of the year alone.
Against that backdrop, the board’s reported discussions about replacing CEO David Solomon, 64, with president John Waldron, 57, as early as next year are particularly striking.
The succession plan, which would move Solomon to executive chairman, could face a board vote in the coming months, according to The Wall Street Journal.
Wells Fargo analyst Mike Mayo called it one of the “smoother and more deliberate” leadership transitions Wall Street has seen.
But a critical risk remains: Solomon may not be ready to cede his seat, and Waldron may not be willing to wait indefinitely.
Solomon has restored Goldman’s momentum after a failed consumer banking venture. Supported by a deal rebound tied to the Trump administration and the AI boom, Goldman is once again a straightforward investment story as the top pure-play bank.
“It’s just very hard for a person like that to decide they are really going to retire,” said retired University of Delaware law professor Charles Elson. “Being 65 today is like being 55 was 30 years ago.”
Elson added that Solomon’s role as board chairman gives him outsized influence, making it difficult to force him out.
Goldman spokesman Tony Fratto stated there is “no definitive timeline for succession,” noting that boards routinely discuss planning across near, medium and long-term horizons.
There will always be tension
Another CEO succession expert, Yale School of Management’s Jeffrey Sonnenfeld, warned that it would be poor governance for the board to try to “drive out a high performing CEO like David Solomon.”
Under Solomon, who became CEO in 2018, Goldman shares have risen over 300%, the second-best performance behind only the KBW Bank Index, per Mayo. Only JPMorgan Chase CEO Jamie Dimon, in nearly 21 years, has done better.
That puts Goldman in a bind: Even if Solomon plans to leave within a year, he has little reason to announce it, as doing so would make him a lame duck with diminished influence, according to Elson.
But if Solomon wants to stay amid an AI boom he sees as being in its early stages, Waldron may grow tired of waiting.
After all, Waldron, Goldman’s president and COO, had reportedly explored leadership roles at alternative asset managers Apollo and Carlyle.
Goldman kept Waldron with an $80 million retention package through 2030, but Elson noted a well-funded suitor could still lure him away.
“There will always be tension in a set up like that,” Elson said. “It’s like Prince Charles waiting for his mother to die. You can’t set your own priorities because someone else is in charge.”
