Confirming speculation first broached earlier this year, Goldman Sachs CEO Lloyd Blankfein is indeed retiring from the firm he’s led since 2006.
Back in March, the Wall Street Journal reported that Blankfein planned to step down later this year, but Blankfein took to Twitter in the aftermath to seemingly refute the retirement rumors.
Later that week, Goldman Sachs announced that one of its two co-presidents, Harvey Schwartz, planned to retire.
Schwartz’s retirement set the stage for the other co-president, David Solomon, to take over as CEO whenever Blankfein decided to leave, which, as it turns out, is later this year after all.
Goldman Sachs announced Tuesday that Blankfein will be stepping down as CEO and chairman of the board of directors on Sept. 30, 2018. Upon his retirement, Blankfein will assume the title of senior chairman.
Solomon will take over as CEO and join the firm’s board on Oct. 1, 2018.
Solomon and Schwartz became president and COO in January 2017 after Gary Cohn left the company to join the Trump administration as White House National Economic Council director.
Prior to that, Solomon was global co-head of Goldman Sachs’ investment banking division from 2006 through 2017.
Cohn previously served as the second-in-command at Goldman Sachs, and he was long considered to be Blankfein’s heir apparent.
But despite Cohn resigning from his position as White House National Economic Council director earlier this year, Goldman Sachs is keeping it in house for Blankfein’s successor.
“David is the right person to lead Goldman Sachs,” Blankfein said in a statement. “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.”
Blankfein’s pending departure leaves JPMorgan Chase CEO Jamie Dimon as the only big bank CEO still standing from before the financial crisis.
“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 continued. “Our firm has 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.”
Solomon said that he is “humbled” by the opportunity to lead Goldman Sachs.
“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.”
