Succession talks at Goldman Sachs have reportedly moved beyond informal conversation.
CNBC reported that the bank’s board has discussed replacing Chief Executive Officer David Solomon, 64, with President John Waldron, 57. According to the report, those conversations included the prospect of making a leadership change as early as next year.
The report said the board’s planning for a potential transition is encountering a major problem, but it did not set out full details of that issue. Goldman Sachs has not publicly confirmed any timeline for a CEO change or provided specifics about obstacles to succession.
Succession planning at large financial institutions tends to draw close attention because of the potential effects on client relationships, employee morale and market confidence. Boards typically balance considerations such as continuity of strategy, regulatory scrutiny and investor reaction when deciding on the timing and terms of a leadership change.
Any move to elevate a sitting president to the chief executive role would be watched by investors and regulators, and could prompt questions about governance and the outgoing CEO’s role during a transition period. Market participants and industry observers often look for formal announcements from boards to clarify the path forward.
Goldman has declined to comment in past reporting on internal deliberations. The reported discussions, if accurate, would mark a notable moment in the New York bank’s leadership planning, but CNBC’s account leaves open key questions about timing and the nature of the reported hurdle to implementing a change.