According to a report from The Wall Street Journal, which cited people familiar with the matter, John Waldron could replace David Solomon as CEO as soon as next year.

  • According to the report, discussions have considered Waldron taking over as CEO around the end of 2027 or in 2028.
  • Waldron currently serves as the bank’s president and COO. 
  • Meanwhile, per current discussions, CEO Solomon is likely to stay on the board as executive chairman for about one to two years after stepping down as CEO, according to the report. 

Shares of Goldman Sachs Group, Inc.. (GS) edged 0.17% higher in the premarket session early Tuesday after reports suggested the bank is considering a plan for David Solomon to step down as CEO and be replaced by Chief Operating Officer John Waldron. 

According to a report from The Wall Street Journal, which cited people familiar with the matter, the move could come as soon as next year. 

GS Leadership Succession Details 

According to the report, discussions have considered Waldron taking over as CEO around the end of 2027 or in 2028. Waldron currently serves as the bank’s president and COO. Waldron joined Goldman Sachs in 2000.

Meanwhile, per current discussions, CEO Solomon is likely to stay on the board as executive chairman for about one to two years after stepping down as CEO, the report noted. 

The bank has been working over the past year to transition duties related to Waldron’s COO role to its finance chief, Denis Coleman, according to the report. 

The plan will need to be approved by Goldman’s board, which is likely to happen in the coming months, according to some people familiar with the matter. 

However, they added that the timing of the leadership transition may be fluid and is subject to change.

Waldron’s promotion to CEO would leave the position of president open, although as per the people in the report, it is currently not clear how this will play out. The report said a big part of the problem would be the risk of top executives leaving the firm if they don’t get the title. 

Reuters cited those executives including the co-heads of the firm’s global banking and markets division Dan Dees and Ashok Varadhan, and Marc Nachmann, global head of asset and wealth management.

GS Stock: Wall Street Stance

Before the report on the CEO transition, HSBC raised its price target on Goldman Sachs to $1,007 from $995 and maintained a ‘Hold’ rating on the shares, according to The Fly. The revised target implies an upside of nearly 10% from the company’s last close. 

The analyst said that it had adjusted targets in the banks and brokers space as part of a third-quarter earnings preview, noting that bank investor sentiment had reversed amid rising global yields and renewed fiscal concerns. 

HSBC said that it sees the banking sector's year-over-year earnings growth moderating due to tougher capital market comparables and higher costs, adding that it prefers banks with opportunities to improve return on equity that are trading at "undemanding" multiples.

Retail Stance On GS Stock

On Stocktwits, retail sentiment around GS stock was ‘bullish’ at the time of writing. 

One user said, “$GS Baffling how this can be held down for so long.  Clearly the top investment banking company in the world.  Such cheap prices, you have to believe this is the time to get rid of weaker hands to get shares for an ER that will send this on an upward trajectory again.”

Another user said, “$GS Give me a break! This stock is great for growth. GS can’t possibly lose long term with the huge amount of capital they “manage” for constant $ $ $.” 

GS stock has gained about 14% in the last one year. 

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