The management style of Goldman Sachs Group Inc.’s CEO, David Solomon, has come under fire from within the company as its stock price continues to lag behind its competitors, according to a recent report from The New York Times.
According to sources familiar with the matter, former Goldman Sachs CEO, Lloyd Blankfein, offered assistance to Solomon, but his offer was declined.
The New York Times interviewed 19 individuals who are knowledgeable about Solomon, including a former colleague who stated, “If you’re looking for a guy to pat you on the back, it’s not him.”
Solomon has faced criticism for being distracted by his side job as a disc jockey and for his frequent trips to private resorts owned by a company in which he has invested.
Aware of these concerns, Solomon has sought advice both internally and externally on how to address his behavior.
Goldman Sachs Faces Challenges in 2023
Goldman Sachs, a prominent player in the financial industry, has been experiencing a decline in its stock performance this year. As of the latest update, its stock has fallen by 0.8% in 2023. In contrast, Morgan Stanley has seen a 3.2% rise, while JPMorgan Chase & Co. has witnessed an impressive increase of 15.2%. Both Goldman Sachs and JPMorgan are part of the Dow Jones Industrial Average (DJIA), which has seen a 6.4% increase so far this year.
Last week, Goldman Sachs made headlines with the return of veteran Russell Horwitz as chief of staff. Horwitz, also known as “Mr. Fix-It,” played a significant role during the global financial crisis of 2008-09.
In addition to Horwitz’s return, Solomon, the CEO of Goldman Sachs, recently added Tom Montag as an ally to the board.
Furthermore, Solomon is facing pressure from a Justice Department inquiry probing Goldman’s involvement both as a banker and acquirer of Silicon Valley Bank securities leading up to the bank’s collapse.
In early 2023, Goldman restructured into three major units: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. Previously, it reported four units: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.
One notable change for Goldman Sachs is its decision to sell its GreenSky consumer-lending unit.
Also read: Goldman Sachs’s stock turns higher as bank sees potential uptick in deal making after ‘noisy’ second-quarter results