Goldman Sachs changes track and confirms part-time DJ as chief executive
David Solomon is set to replace Lloyd Blankfein as chief executive and chairman later this year.
Goldman Sachs has confirmed that chief operating officer David Solomon will replace Lloyd Blankfein as chief executive, ending a 12-year stint for the outgoing boss.
Mr Solomon will join the board on October 1, a day after Mr Blankfein steps down as chief executive, and will take on the additional role of chairman by year end.
The long-time banker and part-time DJ replaces one of the longest-serving Wall Street bosses, with Mr Blankfein’s leadership having both survived and outlasted the financial crisis.
Mr Solomon – known on the dance floor as DJ Sol – takes up the reins after serving as chief operating officer and president from 2016, having previously worked as the global co-head of the investment banking division from 2006.
His path to the chief executive’s desk was cleared earlier this year, when his co-chief operating officer Harvey Schwartz – who was also seen as a likely successor – announced he would retire from the firm.
Mr Blankfein, who will serve as “senior chairman” after his retirement, said: “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 centre of our strategy.
“Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realise the next stage of growth.”
He added: “I’ve never been more optimistic about our ability to serve our clients effectively and generate industry-leading returns.”
Goldman Sachs made the announcement alongside the release of its second quarter results, which showed profits rising 44% compared with a year earlier.
The rise was driven by the investment bank’s core operations, including its deals advisory business and its trading division.
The New York-based bank said earnings reached 2.35 billion US dollars (£1.8 billion) in the second quarter, compared with 1.63 billion US dollars (£1.2 million) a year earlier.
On a per-share basis, Goldman earned 5.98 US dollars a share, compared with 3.95 US dollars a share a year earlier, beating analysts’ forecasts of 4.65 US dollars a share.
Nearly all of Goldman’s business divisions experienced double-digit growth in the second quarter, with trading particularly strong and its investment banking business posting an 18% rise in net revenues.
Its institutional client services division, which contains the firm’s trading operations, posted net revenues of 3.57 billion US dollars in the quarter, up 17% from a year earlier.
Company-wide net revenues were 9.4 billion US dollars in the quarter, also beating analysts’ expectations.
The bank has been aiming to diversify its businesses, moving into consumer banking and lending.
The US banking giant recently hired 150 extra staff in London as it prepares the launch of its first consumer bank account in the UK under the Marcus by Goldman Sachs brand.
It marks the digital banking platform’s first expansion outside the US, where it launched in 2016.