Waldron long seen as next Goldman CEO. The question is when

John Waldron has long been seen as successor to Goldman Sachs CEO David Solomon. The question was when the transition would happen. The Wall Street Journal reported on Monday that the investment ‌bank had discussed a plan for Solomon to step down as CEO and be replaced with Chief Operating Officer Waldron as soon as next year, citing people familiar with the matter.

"Of course the board regularly discusses succession, as we disclose in our filings, but there is no definitive timeline for succession at Goldman Sachs. Any assertions about timing are just speculation," Tony Fratto, Goldman's global head of communications, said in a statement. Solomon, 64, had been expected by senior staff to do ‌10 years in the CEO role, meaning he would likely stay in the position until 2028, a source familiar with the matter told Reuters on Monday. He was named CEO in October 2018.

Goldman shares were down 0.35% ‌in early trade, slightly underperforming the S&P 500 index, which was flat. The stock has quadrupled since Solomon became CEO in 2018.

CEO succession has become a key focus for investors across Wall Street. At JPMorgan Chase, attention has centered on when Jamie Dimon may step aside, while investors have also monitored leadership planning at Bank of America under Brian Moynihan, one of the longest-serving chiefs among major US banks. Waldron, 57, has been expected to take over the reins from Solomon, sources familiar with the matter have said previously. His standing was further reinforced last year when he ⁠was appointed to ​the board and awarded a retention bonus.

Solomon and Waldron were ⁠awarded retention bonus of $80 million each in restricted stock, which vests in five years in early 2025. Waldron was approached by alternative asset manager Apollo in 2024 for a senior role, but he declined and stayed on at Goldman, two sources familiar with the matter said. Apollo did not ⁠immediately respond to a Reuters request for comment.

Wells Fargo analyst Mike Mayo said Goldman Sachs' succession has been 'unusually telegraphed' and Waldron's ascension has been expected since last year, when he was awarded the retention bonus. It is unlikely that Waldron changes the bank's strategy devised ​by Solomon.

"This marks a small break from tradition, with both Solomon and Waldron coming from the investment bank," said Sean Dunlop, banking analyst at Morningstar Research. "In the past, the seat would often pass between ⁠CEOs that had spearheaded the investment bank and trading desk."

Strategically, Dunlop expects very little change, with the firm continuing to invest behind its more stable, fee-based businesses such as asset and wealth, more asset-light trading business like equity and fixed-income commodities and financing. The timing is interesting, with the bank trading ⁠within ​a "standard deviation of all-time high prices amid a fantastic backdrop for both investment banking and trading," he said.

OVERSEEING LEADERS OF BANK'S MAIN DIVISIONS The Wall Street bank, which has been the top-ranked mergers and acquisitions adviser for two decades, has focused on growing its global banking and markets division, and wealth and asset management.

Goldman Sachs exceeded second-quarter profit expectations as dealmaking picked up and market volatility amid the US-Iran war boosted equities revenue to a record. Solomon significantly ⁠scaled back the firm's consumer banking by shedding assets after its foray into retail banking flopped.

Waldron, who has been president and chief operating officer since October 2018, oversees the leaders of the bank's main divisions. He previously served ⁠as co-head of investment banking, a role he assumed in 2014 ⁠after joining Goldman in 2000. According to the WSJ report, discussions have involved Waldron taking over around the end of 2027 or in 2028.

Under the plan, Solomon would remain executive chairman for one to two years after stepping down from the CEO role, the report said. The proposal would require approval from the bank's board, and its timing could change, ‌it said. The report added that approval ‌could happen in the coming months.