From The New York Times
The most closely watched contest on Wall Street appears to have been settled.
Goldman Sachs Group said on Monday that Harvey M. Schwartz would retire, likely clearing the way for his fellow president and co-chief operating officer, David M. Solomon, to become the company’s next chief executive.
The surprise announcement reflected a decision by Goldman’s board of directors in late February to anoint Mr. Solomon as the eventual successor to the bank’s current chief executive, Lloyd C. Blankfein, according to people briefed on the board’s decision.
Goldman, for decades the most prestigious firm on Wall Street, has lost some of its sheen in recent years, with its profitability dented by a sharp slowdown in trading of bonds, currencies and other assets. Despite the challenges, though, its stock price is trading at a record high. It rose more than 1 percent Monday morning after the announcement that Mr. Schwartz would retire.
David M. Solomon will become the sole president and chief operating officer of Goldman Sachs. He had been co-chief operating officer with Harvey M. Schwartz, who Goldman said on Monday would retire in April.
Mr. Solomon and Mr. Schwartz are longtime managers of separate arms of the company. Mr. Solomon — who moonlights as D.J. D-Sol, spinning electronic dance music — is a veteran investment banker. Mr. Schwartz, who is a black belt in karate, is a finance whiz with a background in Goldman’s commodities business.
In December 2016, they were put on an equal footing at Goldman as part of a competition to determine who would one day replace Mr. Blankfein.
The starting gun on that race was the departure of Goldman’s president, Gary D. Cohn, who left to join the Trump administration as director of the National Economic Council. Mr. Cohn announced his resignation from the Trump administration last week.
Mr. Schwartz was informed Friday that Mr. Solomon had won the board’s backing, said the people briefed on the board’s decision. Mr. Schwartz quickly made plans to depart.
Inside Goldman, the decision was announced Monday morning at a meeting of the bank’s management committee. At the meeting, Mr. Blankfein, who has run Goldman for nearly 12 years, said that he had not yet decided when he would step down, according to someone briefed on that meeting.
Mr. Schwartz, who was previously Goldman’s chief financial officer and global co-head of its securities division, plans to retire in April, the company said.
“Harvey has been a mentor to many, and his influence has made an indelible impact on generations of professionals at Goldman Sachs,” Mr. Blankfein said in a news release. “I want to thank Harvey for all he’s done for the firm.”
The Wall Street Journal reported last week that Mr. Blankfein was preparing to step down as soon as the end of this year.
After The Journal article was published, Mr. Blankfein tweeted on Friday, “It’s the @WSJ’s announcement … not mine. I feel like Huck Finn listening to his own eulogy.”
Mr. Blankfein, 63, is one of Wall Street’s longest-serving top executives. He has joked that he would die at his desk. Mr. Blankfein was diagnosed with lymphoma in September 2015, but continued to work while receiving treatment.
Mr. Solomon, 56, joined Goldman Sachs in 1999 and was previously co-head of its investment banking division.
He grew up in suburban Hartsdale, N.Y., and joined the commercial bank Irving Trust after college.
In the early 1990s, he began working at Bear Stearns and helped run the bank’s junk bonds division. He was a rare outsider to join Goldman as a partner when he was hired in 1999.
A New Jersey native, Mr. Schwartz, 54, has worked as Goldman since 1997. He worked his way through the ranks, serving as co-head of the Americas financing group in the investment banking division and as global head of securities division sales. He was named a partner in 2002.
Mr. Schwartz served as the global co-head of the securities division from 2008 to 2013, before he was named chief financial officer.
He also began working in finance on an inauspicious day: his first day on a trading floor in 1987 was Black Monday, when the stock market plunged 22 percent.
From Goldman Sachs
HARVEY M. SCHWARTZ TO RETIRE FROM GOLDMAN SACHS, DAVID M. SOLOMON TO SERVE AS SOLE PRESIDENT AND CHIEF OPERATING OFFICER
NEW YORK, March 12, 2018 – The Goldman Sachs Group, Inc. (NYSE: GS) today announced that Harvey Schwartz, the firm’s President and Co-Chief Operating Officer, has decided to retire effective April 20, 2018. David Solomon will serve as sole President and Chief Operating Officer of the firm upon Harvey’s retirement.
“Over his 20-year career at Goldman Sachs, Harvey has held leadership roles across a broad range of the firm’s operations – from Securities and Investment Banking to the Executive Office, where he served as Chief Financial Officer; and most recently, as President and Co-Chief Operating Officer. Harvey’s work ethic, command of complexity, and client focus have defined his career at the firm,” said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs. “Harvey has been a mentor to many, and his influence has made an indelible impact on generations of professionals at Goldman Sachs. I want to thank Harvey for all he’s done for the firm.”
“I look forward to continuing to work closely with David in building our franchise around the world, serving our expanding client base and delivering strong returns for our shareholders,” said Blankfein.
Background on Harvey Schwartz
Harvey has served in his current role since January 2017, and prior to that, served for four years as Chief Financial Officer, where he oversaw our most critical financial and risk management processes.
During Harvey’s tenure as Chief Financial Officer, he played a critical role in helping the firm adapt to significant changes in the regulatory environment. In the process, he served as a champion for the vital role of the Federation and contributed significantly to our culture of regulatory compliance.
Prior to being named Chief Financial Officer, Harvey served in a variety of leadership roles. From 2008 to 2013, he served as the global co-head of the Securities Division, where he was instrumental in overseeing growth in our client franchise across FICC and Equities. During the financial crisis, Harvey played an important role in the management of our risk exposures, even while we were meeting the significant needs of our clients.
From 2007 to 2008, Harvey served as global head of Securities Division Sales following his leadership of North American Sales. Prior to that, within Investment Banking, he co-headed the Americas Financing Group, which centralizes financing-related advice, origination and execution. Harvey was named managing director in 1999 and partner in 2002. He joined the firm in 1997 as a vice president.
