Published: Mon, March 12, 2018
Business | By Kate Woods

Goldman Sachs signals who its next CEO will be

Goldman Sachs signals who its next CEO will be

The investment bank intends to replace Blankfein, 63, with one of its two co-presidents, David Solomon or Harvey Schwartz, the newspaper said Friday, citing people familiar with the matter that it didn't name. Harvey's work ethic, command of complexity, and client focus have defined his career at the firm.

The report did add that the timing of a move could change, and that Blankfein was "firmly in control of his exit", but the current plan was that he would retire ahead of, or early in, Goldman's 150th anniversary year in 2019.

Goldman Sachs shares advanced 1.5 percent to $270.44 as of 12:08 p.m.in NY, near their highs for the day, after trading as low as $267.04 just after the Journal report.

Blankfein, 63, one of the longest-serving CEOs on Wall Street, has led what is viewed as the most powerful USA investment bank for almost 12 years.

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Schwartz has been with Goldman for 20 years and held various leadership roles.

Schwartz has been co-president and chief operating officer since January 2017.

"We saw the future as more of an investment-banking future than a securities or trading future and that favored Solomon", Charles Peabody, a Compass Point Research & Trading analyst, said in an interview with Bloomberg Television.

"Harvey has been a mentor to many, and his influence has made an indelible impact on generations of professionals at Goldman Sachs", Blankfein said.

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Solomon rose through the financing business after joining as a partner from Bear Stearns Cos. and ran the firm's top-ranked investment-banking business for a decade. Before that, he served as Goldman's chief financial officer and quarterbacked the firm's transition to tougher regulation.

Prior to Goldman, Solomon spent almost nine years at Bear Stearns.

If Solomon does inherit the CEO job from Blankfein, he may have his work cut out for him.

Solomon has also tended to be more of a public face for Goldman Sachs than Schwartz has.

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