Shares of Goldman Sachs (GS) are in focus today after the bank said Co-Chief Operating Officer Harvey Schwartz will step down next month, suggesting that David Solomon could be in line to be the bank’s next chief executive officer.
SOLOMON TO BECOME SOLE COO: Goldman Sachs announced on Monday that co-COO Harvey Schwartz will step down on April 20. David Solomon, the other co-COO, will become sole COO and president on that date. CEO Lloyd Blankfein commented on the executive shuffle, saying, “I want to thank Harvey for all he’s done for the firm. I look forward to continuing to work closely with David in building our franchise around the world, serving our expanding client base and delivering strong returns for our shareholders.”
BLANKFEIN STEPPING DOWN?: Last Friday, The Wall Street Journal reported that Blankfein is set to retire from his post as CEO as soon as the end of the year. According to people familiar with the matter, Goldman was not looking beyond Solomon and Schwartz to replace Blankfein. The report added that Blankfein is “firmly in control of his exit.” Following the Journal’s report, Andrew Ross Sorkin of New York Times and CNBC tweeted, “Is the story that @lloydblankfein is leaving @GoldmanSachs ‘as soon as’ the end of the year true? It could turn out that way. But neither Lloyd, nor the board, have set a specific succession timeline, my sources say.” Blankfein also chimed in, tweeting that “It’s the @WSJ’s announcement…not mine. I feel like Huck Finn listening to his own eulogy.”
PRICE ACTION: Goldman Sachs is up 0.6% in early trading to $272.18.