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Goldman Sachs Group CEO David Solomon is facing internal dissent and negative publicity amidst falling profits, low morale, and unfavorable media attention. Recent articles have highlighted the challenges within the company, including a controversial bonus round, the departure of top bankers, and criticism of Solomon’s leadership style.
The board of directors is expected to address these concerns at an upcoming meeting, but for now, they remain supportive of Solomon and dismissive of external criticism. They believe it is unfair and do not want to be swayed by public pressure. However, there are questions about whether their patience has been misplaced.
Some of Goldman’s major shareholders also stand behind Solomon, emphasizing his performance for the company’s investors. Despite staff dissatisfaction, they believe he has done a solid job and expect the controversy to fade away as long as the bank continues to perform well.
Solomon’s efforts to engage with investors and improve transparency have garnered support. He has taken a different approach than his predecessors, hosting investor days and increasing shareholder meetings. However, he has also faced criticism for his involvement in a failed retail banking endeavor.
Goldman Sachs declined to comment on the situation.
Earlier this year, reports of unrest within Goldman Sachs emerged, including layoffs and low pay. The negative media coverage prompted Solomon to address the issue with top executives, expressing concern about leaks damaging the bank’s reputation.
Charles Elson, director at the University of Delaware’s John L Weinberg Center for Corporate Governance, suggests that a series of consistent articles can serve as a red flag for a board, indicating the need for further investigation.
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