Goldman Sachs Picks David Solomon as Next CEO

By Dipo Olowookere

A new chief executive officer has been announced by renowned Wall Street financial institution, Goldman Sachs Group Inc and he is Mr David Solomon.

Mr Solomon is expected to succeed the long-time CEO of the company, Mr Lloyd Blankfein, from October 1, 2018.

“David is the right person to lead Goldman Sachs,” Mr Blankfein said in a statement. “He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the centre of our strategy.”

“Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realize the next stage of growth,” he added.

With his new role, Mr Solomon is expected to supports the firm’s expansion into different businesses and revamps familiar ones.

The change comes at a turning point for Goldman Sachs, which is trying to generate another $5 billion in annual revenue by growing its fledgling consumer bank, squeezing more from businesses like asset management and changing the way it approaches trading.

Management detailed parts of that plan last September after years of insisting that Goldman’s once-lucrative trading business would come roaring back to life when markets picked up. Instead, since 2009, Goldman’s annual trading revenue has declined by $20.8 billion.

Unlike Mr Blankfein, who rose through the trading ranks to become CEO, Mr Solomon made a name for himself advising corporations on financing and strategy in Goldman’s investment bank.

The 56-year-old investment banker joined as a partner in 1999 after working in commercial paper, junk bonds and leveraged finance at firms including Salomon Brothers, Drexel Burnham Lambert and Bear Stearns.