Embattled CEO David Solomon of Goldman Sachs found himself in a tense situation when Lloyd Blankfein, his predecessor, expressed his dissatisfaction with the bank’s disappointing performance this year. According to reports, Blankfein reached out to Solomon over the summer to complain about the declining stock price. In their conversation, Blankfein even offered to return to the firm in an advisory role, but Solomon turned down the offer. These developments highlight the mounting criticism and doubts surrounding Solomon’s leadership, with Goldman partners and former executives expressing their concerns.
This isn’t the first time Blankfein has taken a jab at his successor. Earlier this year, he made a caustic comment to a group of partners, expressing his desire for Solomon to focus more on generating profits rather than spending excessive time on planes. The current quarter has not been kind to Goldman Sachs either, with profits experiencing a significant 60% decline compared to the previous year, partly due to the closure of a consumer bank that Blankfein himself purchased and lost billions on. Furthermore, the bank has faced scrutiny for its involvement in the failure of Silicon Valley Bank.
The mounting frustration within the organization has resulted in a wave of departures by star employees. This poses a challenge when it comes to finding a suitable successor for the 61-year-old Solomon, as the pool of potential candidates has significantly diminished. In addition, the recent announcement of John Rogers, the chief of staff for nearly three decades, stepping down adds to the shifting dynamics within the company. However, Solomon’s career as a DJ on the side has also drawn criticism, further impacting his reputation.
Despite the internal discontent and concerns, some observers remain optimistic. Although the stock has faced some recent declines, it has also experienced substantial growth of approximately 50% since Solomon took over as CEO. Those who support Solomon argue that the criticisms stem from a culture of second-guessing and envy among partners and ex-partners. Regardless, the situation at Goldman Sachs remains uncertain as the CEO navigates through these challenges while striving for success.
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