Goldman Sachs Names Likely Successor to CEO David Solomon

Goldman Sachs' CEO succession plan has taken shape, with COO John Waldron likely to succeed David Solomon as early as late 2027 or 2028. According to a report by the Wall Street Journal, the Goldman board has discussed a plan that would see Waldron take over from Solomon.

Analysts at Bank of America say this move comes as no surprise, given Waldron's key role in management strategy under Solomon and his long-standing status as the most likely successor. The analysts praise Solomon's tenure, citing his success in increasing shareholder returns and transforming the firm's culture to focus on generating attractive outcomes for shareholders.

Bank of America notes that Goldman is now a more shareholder-focused institution than it was when Solomon took over. However, Waldron would still oversee the next phase of Goldman's transformation, which could be influenced by the global economy's shift towards AI and its implications for the firm's business model.

The analysts highlight Goldman's business mix as an area that needs further attention, with earnings still heavily tied to capital market performance. Despite progress in generating more durable revenues, management argues that Goldman is now positioned to achieve higher highs and lower lows through the cycle.