The New York Times reported that David M. Solomon, who is currently the President and Chief Operating Officer, was chosen as Lloyd C. Blankfein’s successor as Goldman Sach’s Chairman and Chief Executive Officer. This news is said to be officially announced in a conference call on Tuesday morning with all of the Company’s managing directors.
Solomon is many things including President of Goldman Sachs, karate black belt holder, long-time investment banker and part-time D.J., under the alias D.J. D-Sol. He was raised in Westchester, New York and moved to Manhattan in 2002. He started his career at Irving Trust, after graduating from Hamilton College and prior moving to Bear Stearns to run their junk bonds division. At Bear Stearns, he had gained exposure to Goldman Sachs through a joint collaboration to build the Venetian resort for casino mogul Sheldon Adelson. After graduating Hamilton College, he was not able to secure a position at Goldman Sachs, but after the almost raising almost USD 1 Billion for Adelson, Blankfein praised Solomon and encouraged efforts to recruit him. He joined Goldman Sachs’ leveraged finance team as a partner in 1999 and was named Co-Head of the Company’s investment bank division in 2006. Solomon has been said to be Goldman Sachs’ key dealmaker and point man on client relationships. He is known to be client-centric and diplomatic, and he maintains the client relationships with Walt Disney, General Mills, 3M, and the aforementioned billionaire, Sheldon Adelson.
Solomon was expected to be the next Chief Executive Officer ever since his sole competitor, Harvey M. Schwartz, resigned after current Chairman and Chief Executive Blankfein expressed his preference for Solomon. Solomon and Schwartz were named co-President and co-Chief Operating Officer after Gary Cohn vacated the position to join the ranks of other former Goldman Sachs executives in holding senior government positions. Cohn stepped down as the director of National Economic Council after President Trump imposed steel and aluminum tariffs on U.S. allies, despite his protests. Under the direction of current Chief Executive Blankfein, Goldman Sachs reliably outdid its main competitors in revenue per employee and touts a stock performance second only to JPMorgan. Goldman Sachs trading division, however, has been less profitable since before the 2008 crisis. This lead to a new plan, devised jointly by Solomon and Schwartz, before his departure, that aimed to expand franchises to midsized cities such as Seattle and Dallas. This plan, focused on consumer lending, is designed to increase revenue by USD 5 Billion by 2020.