April 20, 2024 1:52 am
Investor Advisor Recommends Separating Roles of Goldman CEO and Chairman

David Solomon, the chairman and CEO of Goldman Sachs for the past five years, is facing a challenge from an investor advisor over the separation of his roles. The advisor, Institutional Shareholder Services (ISS), has recommended that Goldman have separate CEO and chairman roles to ensure more independent oversight. The annual meeting vote on this issue comes at a time when Goldman Sachs is under scrutiny for its consumer business and ongoing personnel issues.

Recent reports have put Solomon under a harsh spotlight as he has been working on damage control after revelations about a lack of female leadership, including women leaving the company during his tenure. One of the female executives who left was Stephanie Cohen, who led the bank’s consumer business ventures and ended up in losses and subsequent retreat.

Despite concerns about Solomon’s decisions in the consumer sector resulting in losses and further human capital issues, Goldman’s governance committee found that the dual CEO-chairman structure was effective. However, ISS still recommends separate roles to ensure more independent oversight of the company.

Goldman’s board of directors, including next lead independent director David Viniar, have received ISS’ recommendation to be voted for by shareholders at their upcoming meeting. There is skepticism about elevating a former Goldman executive to such a role, but the board stands by its decision and structure. Despite ISS’ report and upcoming shareholder meeting, Goldman Sachs remains silent on their stance on this matter.

Leave a Reply