The CEO of Goldman Sachs, David Solomon

David Solomon, CEO of Goldman Sachs, broke Dissens by an examination in leaks and deleted Stalwarts, who tried to undermine his leadership, according to a blockbuster report.

Solomon, who took over the giants of the Wall Street from Lloyd in 2018, tightened his grip for a wave of internal counter -reactions during a rocky route in 2022 and 2023 when Goldman's profits stalled.

He was blamed for the costly expansion of the company to the lending of the consumer and was booked for highly announced events in the Hamptons and in Lollapalooza because of his attention-strong side as a DJ-SOL.

Solomon defended itself against poor public relations work by initiating an investigation to get information to the media and to disguise managers behind closed doors, according to Wall Street Journal.

Solomon personally announced Goldman's board of directors that he would “take measures” against nice employees, said sources of the magazine.

He bumped into long-term managers who had asked his leadership-a single Jim Esposito, co-manager of global banks and markets, and top dealer Ed Emerson.

Emerson's departure came after he had reported colleagues at a dinner that Solomon was to be released and replaced by President John Waldron.

Solomon found it out and Emerson had disappeared according to the journal.

Even exit talks became slaughtered areas.

Sources informed the journal that Solomon was shouting partners who came to tell him that they were lying off.

Solomon of Iron Fisted was a dramatic shift in Goldman's traditional partnership culture, in which senior managers were historically operated with a certain degree of autonomy and influence.

But Solomon started the company almost immediately after taking over the reins, the reduction of the departments, the reversal course on the strategy and the centralization of the decision authority. The upheaval accelerated into the financing of consumers after the company's unfortunate expansion.

During his first four-year term, he directed several restructuring-in one thing in the distribution of asset management in 2020 in order to recombinate the two only two years later in 2022.

The constant organizational changes have fueled an exodus of partners. Since then, nine of the eleven partners who were appointed as a leader in early 2022 have gone in the asset management unit alone.

“If you restructure an entire department, management changes are sometimes inevitable,” Goldman's spokesman, Tony Fratto, told the post on Tuesday.

Fratto added that “The story in the company is the people who come back “and that” a quarter of our managing director and partner last year returned people to Goldman Sachs “.

The journal reported that Solomon was committed to taking over Lender Greensky in the amount of $ 2 billion in 2021 in 2021.

Two years later, Goldman sold the loss business. When the consumer department impressed money, investment banking income slowed down and the partners recorded their compensation. Tensions in the company exploded.

“In 2020, the company issued a detailed strategic plan to expand our franchise and to improve the returns sensibly,” Fratto told the Post.

“The vast majority of these goals have been achieved or exceeded.”

Internal critics accuse Solomo's vision for a costly distraction. But instead of changing the course, Solomon doubled.

When Esposito Solomon presented a written criticism of the strategy and recommendations for consumer loan for a shift in the focus, Solomon rejected her directly, according to the report.

The relationship between the two men quickly deteriorated. At the end of 2023, Esposito, once as a future CEO candidate, left the company.

In the same year, Goldman's board started his own review of the consumer debacle and examined who was responsible for the losses.

At the same time, the company's consumer lying processes confronted the investigation by the Federal Supervisory Authorities. But even when the external pressure assembled, Solomon consolidated the control tacitly.

According to the journal, he met with hundreds of Goldman partners around the world privately and asked them to ignore media noise and to concentrate on the future of the company under his leadership.

By 2024, Goldman had started to leave the consumer space and exchange ideas for its core strengths: investment banking, trade and asset management. The company's share price rose by 48%and profits recovered. Solomon also gave up his DJ gigs.

Goldman Stock has increased by more than 209%in the past five years – more than doubled the profits of the S&P 500 and the best competitor such as JPMorgan Chase (170%), Bank of America (80%) and Citigroup (54%).

“Basic facts should be difficult to ignore. Goldman Sachs has been the best performance of the US bank in the past five years and we have expanded our income by almost 50%,” said Fratto.

“Our investors know that the strategy we created in 2020 works,” Fratto told the post office.

There was another big change: Waldron, the long -time member of Solomon, was addressed by Apollo Global Management for a top role. When Waldron informed his boss that he wanted to go, the CEO reported that he was asked.

Solomon went to the board and argued that Goldman couldn't afford to lose Waldron. The result was that both men had received 80 million dollar retirement bonuses for five years, and Waldron received a board seat, reported the journal.

Goldman was shot by two large proxy consulting companies because he had awarded the $ 80 million binding obligations. The institutional shareholders recorded the payments as “bad practice”, the “strict, preset performance criteria”.

Glass Lewis also criticized Goldman's “continued inability to align the payment with the performance”, and asked the shareholders to vote against the awards at the upcoming meeting in April.

Solomon also received a salary base and received its compensation at 39 million US dollars.

A source familiar with the situation told the post that Solomon “now operated on a position of strength”.

“He reoriented the company.”