In a much-anticipated and expected move, Goldman Sachs announced on Tuesday that it had appointed David Solomon as CEO of the investment bank. Solomon succeeds Lloyd Blankfein. According to a statement released by the bank, Blankfein will retire as Chairman and CEO and Solomon will succeed him in both roles.
Solomon will take over as CEO on October 1, 2018 and will add the Chairman title at the start of 2019.
With Solomon's appointment, Blankfein, who is among the longest-serving Wall Street CEOs, will end his tenure at Goldman Sachs. The bank said that Blankfein will accept the title of Senior Chairman after his retirement and Solomon will join the firm’s Board on October 1, 2018.
“I want to express my deep appreciation for the opportunity to work with and benefit from so many talented and dedicated colleagues,” Blankfein said. “My job has also allowed me to engage with many of the most impressive business leaders around the world and I thank them for allowing me to help support their goals and priorities.”
Blankfein said that the firm had demonstrated great resiliency and strength over the last 12 years. “I’ve never been more optimistic about our ability to serve our clients effectively and generate industry-leading returns,” he said.
He added that Solomon was the right person to lead the firm. “He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy. Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realize the next stage of growth.”
“Lloyd has been a remarkable leader during an extraordinary period of challenge for Goldman Sachs. His temperament and innovative thinking, deep understanding of risk and the firm’s businesses, and ability to motivate and inspire the people of Goldman Sachs have defined his tenure,” said Adebayo O. Ogunlesi, Lead Director of the Board of Directors at Goldman Sachs. “He has pushed the firm’s entry into new businesses and opportunities, while also investing in areas that will continue to be highly valued by our clients.”
“I am honored and humbled to have the opportunity to lead Goldman Sachs and I appreciate the confidence Lloyd and the Board of Directors have placed in me,” Solomon said. “I am excited about the opportunities for growth and know how vital our culture of client service and teamwork is to our success.”
The announcement coincided with the bank's second-quarter results. The bank said that its profits rose 40 percent to $2.57 billion, on better-than-expected revenue from investment banking, asset management, and its merchant bank division.