7 hours ago
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You haven’t heard much shade out of Goldman Sachs about David Solomon lately. In fact, the once beleaguered CEO of the prestigious investment bank doesn’t seem so beleaguered these days.
Recall, Solly was the one Wall Street CEO most predicted soon to be out of on his read end, the victim of a nasty internal civil war between bankers (he and his team) and the firm’s powerful trading group and even bankers who didn’t appreciate his style (less collegial than past CEOs, was the knock). During the internal scuffle, he was blamed for various management missteps and received some really, really bad press. Critics used his odd hobby as a high-end DJ in the Hamptons Party circuit to whip up opposition.
But these days, DJ Sol appears to be riding high, after he gave up spinning the turntables in public – with barely a dissenting voice leaking out of Goldman’s headquarters in lower Manhattan.
Goldman CEO David Solomon appears to be riding high, after he gave up spinning the turntables in public – with barely a dissenting voice leaking out of Goldman’s headquarters. Jack Forbes / NY Post DesignSo, I asked for an explanation from one Goldman insider who explained it this way: “David killed off all of the opposition.”
Solly, of course, didn’t literally kill people, but if you want to know why there’s been little if anything leaked from his opponents inside the bank it’s because so many who didn’t like him have left, according to Goldman watchers. Some are calling it the “Solly Purge” that solidified his hold on the top job.
Were they pushed out or just hated working for Solly? I can’t tell for certain. But I saw one insane stat from Business Insider that 215 partners have left the firm since he took over in 2018. Much of that exodus came after the Goldman board stayed the course and kept Solly around despite the internal angst.
Solly’s supporters inside Goldman are pushing back on the notion that their boss just killed off the opposition. They tell me attrition at Goldman is a constant; departures under Solly match historical averages. And that some people who left are coming back because Goldman is a great place work and make money.
Certainly, a big reason for Solomon’s perseverance in his job is that the markets are playing to Goldman strengths. When the markets are volatile as they have been for the last two quarters and definitely for the next (the Trump trade rally followed by the tariff tumult) Goldman usually cleans up, and it has.
Investment banking has been a tough business, but Goldman gets its name on the big deals when they occur. Goldman’s first-quarter 2025 earnings easily beat expectations, and the second quarter should as well. Shares are up 30%, while the S&P is up just 10%.
Another reason for Solomon’s perseverance in his job is that the markets are playing to Goldman strengths. Bloomberg via Getty ImagesThe best indication that Solly is here to say, is his recent retention package, which gives him $80 million “bonus” to lock him in as CEO for the next five years, when he will be 68. His No 2. John Waldron, 55, got the same deal.
All of which is interesting because it does show that barring something unforeseen the board has guaranteed that Waldron — Solly’s loyal No. 2 – will ascend to CEO when his time comes, Goldman insiders tell On The Money.
Charlie Gasparino has his finger on the pulse of where business, politics and finance meet
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Now the question becomes, can they grow the business? A look at longer dated metrics and firms like JPMorgan dominate in earnings growth in a steady fashion, while Goldman still leans heavily on market volatility. Solomon and Waldron had to ditch Goldman’s ill-fated foray into consumer banking; they probably stayed the course too long trying to make a project work that was launched by his predecessor Lloyd Blankfein.
Goldman’s asset management division is part of Solly’s plan to diversify revenue streams and has suffered management turnover though its performance has improved of late.
Bottom line: Goldman watchers say there’s really no reason to ditch Solomon for the foreseeable future.
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