Goldman Sachs Names New CEO, Chairman

Tom Burroughes

17 July 2018

Goldman Sachs today named David Solomon as its new chief executive, taking the helm from Lloyd Blankfein who steps down after a 12-year stint that saw him run the Wall Street firm during the worst financial crisis since the Great Depression.

Solomon, formerly co-chief operating officer and also former co-head of the investment banking arm, was one of those touted as a potential successor when speculation cranked up in March that Blankfein was thinking of stepping down. As well as being CEO, he also takes over as chairman from Blankfein.

The US-listed firm announced the new CEO as it also reported 20 per cent year-on-year rise in net revenues for the second quarter of this year.

Shares in the firm were up 0.29 per cent around 09:30 Eastern time, at $232.11 per share.

Blankfein departs the role on September 30 this year, retiring as chairman at the end of December. On his retirement, he becomes senior chairman. Solomon joins the board on October 1.

While it has been battered by the same financial storms that hit the rest of the banking world a decade ago, and been through a period of soul-searching and recovery since then, the leadership of Goldman Sachs and its strategy are still one of the talking points in modern financial markets. Many of its former senior figures, such as Robert Rubin, have gone on into government roles.

Solomon became co-COO in 2016 and 10 years prior to that, was made global co-head of its investment bank.

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

Revenues and earnings up on year ago
The arrival of the new CEO took place against a backdrop of mostly positive results. The New York-headquartered group reported net revenues of $9.40 billion, up 19 per cent on a year ago, and net earnings of $2.57 billion, surging 40 per cent on the year.

Net revenues in investment management came in at $1.84 billion in Q2, 20 per cent higher than the second quarter of 2017 and 4 per cent higher than the first quarter of 2018.

During the quarter, total assets under supervision increased $15 billion to $1.51 trillion. Long-term assets under supervision increased $5 billion, due to net inflows of $8 billion, spread across all asset classes. These net inflows were partially offset by net market depreciation of $3 billion, reflecting depreciation in fixed income assets, partially offset by appreciation in equity assets. Liquidity products increased $10 billion.