Goldman Sachs CEO Criticized for DJing Side Gig and Struggles with Retail Units
Edited by: TJVNews.com
Lloyd Blankfein, the former CEO of Goldman Sachs, reportedly expressed criticism towards his successor, David Solomon, for dedicating too much time to his side gig as a DJ, the New York Post reported. Blankfein shared his concerns during a conference in Miami Beach, emphasizing the need for Solomon to focus more on his primary role as the head of the renowned Wall Street institution. The Post also reported that alongside this issue, Solomon has faced discontent from Goldman partners over his management of Marcus, the consumer digital bank, and the acquisition of fintech business GreenSky. These challenges have added to the rocky tenure of Solomon as CEO.
David Solomon, who assumed the position of CEO in 2018, has been known to pursue DJing as a hobby. However, reports suggest that his commitment to this extracurricular activity has raised concerns among his colleagues. The Post reported that according to sources, John Rogers, a partner at Goldman, expressed his worries to Solomon regarding the CEO’s DJing side gig. Blankfein also reportedly urged Solomon to prioritize his day job over his DJing endeavors. The Post report indicated that despite being an amateur DJ, Solomon recently secured the rights to remix Whitney Houston’s iconic song “I Wanna Dance With Somebody,” with the assistance of his relationship with music executive Larry Mestel of Primary Wave, a talent management agency.
Solomon’s DJing activities have attracted negative attention in the past. The Post reported that last year, during the height of the COVID-19 pandemic, he faced criticism for DJing at a party in the Hamptons, which sparked public outrage and led to an investigation by then-New York Governor Andrew Cuomo. Additionally, in 2021, employees were displeased when Solomon made a DJ appearance shortly after the bank announced strict COVID safety measures, the Post report said.
Aside from his DJing pursuits, Solomon has faced dissatisfaction from Goldman partners regarding his management of Marcus and the acquisition of GreenSky. The Post reported that since taking the helm, Solomon has sought to expand Goldman’s presence in retail banking. However, Marcus, the consumer banking unit launched in 2016, has struggled to gain traction and has been plagued by delays. Internal forecasts indicate that Marcus’s losses were projected to exceed $1.2 billion in 2022, totaling cumulative losses of over $4 billion, as was indicated in the Post report.
Moreover, the acquisition of GreenSky, a loan technology firm based in Atlanta, has garnered criticism. Partners expressed discontent, claiming that Goldman paid too much for the fintech business. The Post report noted that as a result, Goldman Sachs booked a $470 million loss on the sale of some Marcus loans, adversely impacting their first-quarter results. In light of these challenges, Solomon announced in April that the bank was exploring a potential sale of GreenSky. According to the Post report, Marcus was subsequently integrated into the merged asset and wealth management arm of the company.
Concerns have been raised regarding Solomon’s dedication to his role as CEO due to his involvement in DJing as a side gig. Additionally, Solomon has encountered challenges with the management of Marcus, the struggling consumer digital bank, and the acquisition of GreenSky, which was viewed as overpriced by some partners. These issues have contributed to the mixed performance of Solomon’s tenure as CEO. As Goldman Sachs continues to navigate these challenges, the bank’s shares remained slightly higher during Tuesday afternoon trading.