Goldman succession offers less drama but more risk

The Walt Disney

30/09/2026 13:00

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Stephen Gandel
NEW YORK, Sept 29 (Reuters Breakingviews) - The king of Wall Street is sending a signal who is likely to take its throne next. The board of Goldman Sachs GS.N is nearing a decision to name John Waldron the firm’s next chief executive, according to the Wall Street Journal. Current boss David Solomon is expected to leave the top job as soon as the end of next year. A drama-free and smooth succession would stand in contrast to rivals, especially JPMorgan Chase JPM.N and Bank of America BAC.N. But the clarity, along with a lengthy hand off, could also increase Goldman’s key-man risk.
The investment bank had its share of messy leadership transitions. Former Goldman chief Henry Paulson, for instance, emerged as the sole head of the bank after engineering a boardroom coup while his predecessor and then co-CEO Jon Corzine was away on a ski trip. Solomon’s hunt for his replacement has been the opposite. Waldron, who currently serves as chief operating officer, has long been viewed as his heir apparent and is one of his closest allies. Like Solomon, he rose through investment banking. Goldman further showed its hand last year by awarding Waldron an $80 million retention package.
It stands in contrast to competitors. At JPMorgan, boss Jamie Dimon’s lengthy tenure has fueled years of speculation about who will replace him. The prolonged process has coincided with the departures of several senior executives once viewed as fits for the corner office. Among them are Bill Winters, now chief executive of Standard Chartered and Wells Fargo CEO Charlie Scharf. JPMorgan recently elevated Doug Petno and Troy Rohrbaugh to co-presidents, but the ultimate succession picture remains unsettled.
Even an orderly changing of the guard comes with potential drawbacks, however. Solomon is likely to stay on as executive chair for as long as two years, according to the Journal. Extended overlap periods can create complications. Walt Disney DIS.N head Bob Iger moved to a similar role, a problem for his successor Bob Chapek. Morgan Stanley’s MS.N transfer of power with James Gorman, who left the chair role after a year, provides a more attractive template.
Just a few years ago, Solomon was under pressure as Goldman’s consumer-banking expansion stumbled. Nonetheless, he has refocused on the investment bank's core strengths and rewarded shareholders. The stock price has quadrupled under Solomon, besting the 52% and 112% returns of his predecessors Lloyd Blankfein and Paulson. A strong performance and solid transition plan put Goldman in a rarefied league. 
     
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CONTEXT NEWS
The board of Goldman Sachs has talked about a plan to replace its current Chief Executive David Solomon with Chief Operating Officer John Waldron as early as next year, the Wall Street Journal reported on September 28 citing sources familiar with the matter.
Solomon, who was named chief executive in 2018, may remain chair after stepping down.

(Editing by Jennifer Saba; Production by Maya Nandhini)
((For previous columns by the author, Reuters customers can click on GANDEL/ stephen.gandel@thomsonreuters.com))