Embattled Goldman Sachs CEO David Solomon was confronted by Lloyd Blankfein over the bank’s dismal performance this 12 months — which has cost him $50 million, based on a report.
Blankfein, who rubber-stamped Solomon’s rise to the highest of essentially the most vaunted investment firm on Wall Street, called up his former top lieutenant earlier this summer to complain concerning the company’s sinking stock price, the Latest York Times reported Friday.
He told Solomon that he was running out of patience and offered to return to the firm in an advisory role, based on three people briefed on their conversation cited by The Times.
Solomon reportedly declined Blankfein’s offer of help.
The Post reached out to Goldman for comment.
In a press release to the Times, Goldman spokesman Tony Fratto said, “David is direct and focused on results… Our clients and investors are direct, they usually expect results.”
The purported phone call illustrates Solomon’s precarious position as Goldman partners and former executives increasingly query his leadership.
The partners have griped over their skimpy bonuses, Solomon’s private jet use and most loudly about Solomon’s side hustle as a DJ.
Goldman Sachs CEO is getting heat from former executives.REUTERS
Blankfein also took a swipe at his successor to a handful of partners at an organization gathering in Miami earlier this 12 months, The Wall Street Journal reported in June.
“God, I wish he’d spend less time on the plane and more time getting cash,” Blankfein quipped.
In the most recent quarter, the corporate reported a 60% decline in profits 12 months over 12 months, partially from shutting down a consumer bank that lost billions, which was bought by Blankfein. Goldman has also faced government scrutiny for its involvement within the Silicon Valley Bank failure.
Solomon took the reins from Blankfein in 2018.REUTERS
The frustration has caused many star employees to flee. Over the previous few years departures include Julian Salisbury, Luke Sarsfield, Jeff Currie, Omer Ismail, Katie Koch, Harvey Schwartz, Gregg Lemkau, Eric Lane, Stephen Scherr and Dina Powell.
Which means the 61-year-old CEO might be difficult to interchange given his bench of possible successors has dwindled so dramatically.
Also this week, chief of staff for nearly three many years John Rogers said he’s relinquishing his role. Rogers will still be involved in other projects and hold onto his board seat, based on a memo.
The Goldman Sachs CEO is a DJ for a side hustle.David Solomon/Instagram
“The guy is up against the wall because he pissed off everyone at the corporate,” Dick Bove, a veteran banking analyst, told The Times. “Solomon doesn’t have a personality which gains the loyalty and respect of his subordinates.”
Some sources say his high-handed management style is changing the bank’s culture for the more serious.
“He’s turned Goldman Sachs into Bear Stearns. He doesn’t understand the culture of partnership and teamwork and loyalty,” a source previously told The Post. “He doesn’t understand the difference between a dictatorship and a partnership.”
Others bank-watchers are more optimistic. Although the stock has dropped over the previous few months, it’s climbed dramatically — roughly 50% — since Solomon took the reins from Blankfein in 2018.
“The dynamics at Goldman — with all of the partners and ex-partners — are that there’s just a variety of second-guessing and jealousy,” Ted Virtue, chief executive of the private equity firm MidOcean Partners and a friend of Solomon’s, told The Times.
