Goldman Sachs CEO David Solomon is racking up bad press
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Goldman Sachs CEO David Solomon. Photo: Michael Nagle/Bloomberg via Getty Images
Internal grumblings about Goldman Sachs CEO David Solomon are spilling out into a chain of reports prompting speculation over his future.
Why it matters: Solomon, who is coming up on five years at the helm, is overseeing the company's biggest overhaul since the financial crisis, WSJ notes.
- While his strategy reportedly has the support of the board, some of his decisions — including the issuance of smaller paychecks — have seemingly upset others within the firm.
Driving the news: "Dissent has become an alarmingly frequent occurrence," Bloomberg reporters wrote in a piece Wednesday.
- Comments from unnamed people in a New York Magazine report from last Friday portray Solomon as someone who might be easily disliked.
- And according to a New York Times' story from the same day, senior Goldman partners, investors and former CEO Lloyd Blankfein are reportedly among those who have "expressed frustration with the bank's performance."
Yes, but: Goldman's stock is up more than 60% since Solomon took over.
- The company is still the top bank in terms of fees for equity and M&A deals so far this year, but its overall standing across deals slipped behind JPMorgan, according to Financial Times' League Tables.
Zoom in: And while its foray into consumer banking may have been a "debacle," the bank is still the envy of its peers, Wells Fargo analyst Mike Mayo told Bloomberg Monday.
- "When I talk to investors, investors aren't saying get rid of David Solomon. What they're really asking is ... Does the media impact [Goldman's] performance? I'd say, no, so far," Mayo said.
- "Having said that, David Solomon has to earn his job every day. So I can come back in three months or six months and if he doesn't get the job done, I'll be on the other side."
What they're saying: "The leadership team is focused on executing our strategy and the performance of the business, not on speculation," Tony Fratto, a Goldman spokesperson, tells Axios.
💭 Thought bubble, via the FT: "Goldman Sachs partners that are complaining are famously well-paid and infamous for their sharp elbows, both internally and externally."
Go deeper: Bank CEOs optimistic the nation might just avoid a recession
