Goldman Sachs Faces Succession Crisis as CEO Solomon May Not Want Out

Goldman Sachs is reportedly discussing replacing CEO David Solomon with President John Waldron as early as next year. The succession plan would see Solomon elevated to executive chairman, but there's a key risk: Solomon may not be willing to step down, and Waldron may tire of waiting for the top job.

Solomon has gotten Goldman back on track after an ill-fated foray into consumer banking. With the help of a deals rebound powered by the Trump administration and the artificial intelligence boom, Goldman is once again a clean story for investors: It's the top pure-play investment bank, with $1 trillion in merger deals advised and over $12 billion in equities revenue generated in the first six months of this year.

But Solomon has little incentive to say so. Doing so would make him a lame duck with less influence inside the bank, according to Charles Elson, a retired University of Delaware law professor. And if Solomon decides he wants to remain CEO amid an AI boom that he believes is in its early innings, Waldron may tire of waiting for the crown.

Goldman gave Waldron an $80 million retention package that lasts through 2030 to keep him on board, but even then, a deep-pocketed suitor could make a play for Waldron, said Elson. 'There will always be tension in a set up like that,' he added.