On Friday, March 9, the Wall Street Journal reported that by the end of 2018, the CEO of Goldman Sachs, Lloyd Blankfein, will be stepping down from his position.
Since 2006, 63-year-old Blankfein has led Goldman Sachs. His 12-year reign makes him one of the longest-serving CEOs of Wall Street. In that time, he brought the bank through financial crisis and became very rich and successful in his own right along the way. Blankfein earned $24 million in 2016, which then shot up to $24 million for 2017.
A replacement for Blankfein’s position will probably come from within the company, according to the WSJ. The top candidates are the co-presidents of Goldman Harvey Schwartz and David Solomon. Blankfein’s former second hand, outgoing director of the National Economic Council Gary Cohn, will not be a contender, as he will soon be unemployed.
Some people say that Blankfein’s departure may be timed in such a way that it will coincide with the bank’s 150th anniversary celebration in 2019.
If Blankfein desires, he could potentially have an entire new career in front of him. What that might be and if he will actually pursue it is unclear. According to the WSJ, Blankfein’s three immediate predecessors found jobs in government, but it is unlikely that he will go in that direction, that is at least not until President Trump leaves the White House.
Last Friday Investopedia released an article on this matter that included an outline of the relationship between Blankfein’s departure announcement and Goldman Sachs shares. The article said, “Goldman shares took a sharp dive earlier in today’s session after the news came out, but then quickly recovered. In late day trade, the stock was up 1.4 percent. During Blankfein’s tenure, shares of Goldman have increased more than 84 percent, second only to JP Morgan among its peers and moving far ahead of the likes of Morgan Stanley, Bank of America and Wells Fargo.”
By Mark Snyder