Goldman Sachs' board has held preliminary talks on a leadership handover that would end David Solomon's tenure as CEO and elevate President John Waldron, a man the bank once turned away for failing a math test.
Goldman Sachs' board has discussed a succession plan under which President and Chief Operating Officer John Waldron would become chief executive after David Solomon, with the transition potentially occurring around the end of 2027 or during 2028, The Wall Street Journal reported on September 28, 2026. The talks remain preliminary, and Goldman spokesman Tony Fratto said there is "no definitive timeline for succession at Goldman Sachs," according to Reuters. No board vote or formal appointment has been disclosed.
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How the Succession Plan Emerged
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The Journal reported that Goldman's board had considered a scenario in which Solomon would step down as chief executive and move into the role of executive chairman for one or two additional years, allowing a transition period rather than an abrupt exit. Reuters and other outlets noted that the reported timing shifted between initial and later accounts: early reports suggested a change as soon as next year, while subsequent reporting focused discussions on late 2027 or 2028.
Fratto's statement, cited by Reuters and Qz, acknowledged that Goldman's board routinely discusses succession planning as part of its governance obligations but stopped short of confirming or denying that Waldron is positioned to take over. That carefully worded response neither validates a fixed schedule nor disputes that Waldron remains the leading internal candidate, a distinction that industry observers say is typical when banks respond to sensitive leadership speculation.
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From Rejected Applicant to Heir Apparent
Waldron's path to the threshold of Goldman's top job carries an unusual origin story. After earning a Bachelor of Arts degree from Middlebury College in Vermont, he applied for a position at Goldman Sachs and was rejected, according to his own account reported by the Journal. Waldron said he failed a financial-modeling test during the hiring process because of weaknesses in mathematics and accounting, a detail he has shared in recent interviews about his career.
The setback did not end his Wall Street ambitions. Waldron later joined Goldman and worked his way up through the investment-banking division, eventually becoming a senior adviser to major corporate and institutional clients. By September 2026, he held the dual titles of president and chief operating officer, positions that placed him at the center of the firm's major business lines, client relationships and operating decisions, according to Reuters.
Compensation, Retention and a Rival Offer
Goldman took concrete steps to secure Waldron's future at the firm even as succession speculation grew. Reuters reported that alternative-asset manager Apollo approached Waldron in 2024 about a senior role, but he declined the offer and remained at Goldman, a decision that preserved continuity for a bank that had already identified him internally as a likely future chief executive.
In January 2025, Goldman awarded Waldron an $80 million restricted-stock retention bonus, according to a regulatory filing reported by Reuters. Solomon received an identical $80 million stock bonus intended to keep him at the helm for another five years, Reuters reported at the time. Goldman subsequently named Waldron to its board of directors, a governance move that further cemented his status as the presumptive successor. The coexistence of Solomon's five-year retention package with reported succession talks raises unresolved questions about how the arrangement would be restructured if Solomon transitions to executive chairman; available reporting does not clarify how the board would reconcile the two.
Solomon's Record Since 2018
Solomon, 64, became Goldman's chief executive in 2018, succeeding Lloyd Blankfein. His tenure included a strategic push into consumer banking through products such as Marcus, an effort that generated significant losses and drew criticism before Goldman scaled back the business to refocus on investment banking, trading, asset management and wealth management.
Despite that retrenchment, Goldman's financial performance strengthened considerably in 2025. Reuters reported that Solomon's total compensation rose 20.5% to $47 million for the year, making him one of the highest-paid chief executives on Wall Street, while Goldman shares gained 53.5% during 2025, outperforming the broader market and many banking peers. CNBC noted that the succession discussions are unfolding not amid crisis but during a period of strong shareholder returns, a contrast that has drawn attention across financial media.
What Remains Unresolved
Goldman's public posture leaves multiple outcomes open. Solomon could remain chief executive beyond the reported 2027-2028 window, Waldron's elevation could follow a different timetable, or the board could ultimately weigh other candidates, according to Reuters. Reports describing the deliberations are based on people familiar with the matter rather than an official company announcement, a distinction Goldman's own statement reinforces.
Should the transition proceed as reported, Waldron would inherit a firm whose core trading and investment-banking franchises remain dominant even after the consumer-banking pullback. His decades-long tenure at Goldman would offer institutional continuity, while his personal history — rejected as a graduate for lacking financial-modeling skills, later positioned to lead one of Wall Street's most influential firms — has already made the succession one of the more closely watched leadership storylines in American finance.
