Focus: Waldron's expected rise stirs talk inside Goldman of knock-on succession plans

• Solomon and Waldron each received $80 million retention packages in 2023 that vest in five years, potentially incentivizing Solomon to remain beyond 2028
• Coleman and Varadhan bring distinct strengths: Coleman has broader cross-functional experience, while Varadhan co-heads the banking and markets division that generates 75% of firm-wide revenue
• If Coleman becomes COO, three executives are in focus for CFO: Chief Accounting Officer Sheara Fredman, Chief Administrative Officer Ericka Leslie, and Global Treasurer Carey Halio

Goldman Sachs Succession Planning Summary

Key Leadership Developments:

Goldman Sachs' internal succession planning is gaining attention, with COO John Waldron widely viewed as the likely successor to CEO David Solomon. Speculation has shifted to who would replace Waldron as COO, with two primary candidates emerging: CFO Denis Coleman (52) and Ashok Varadhan (54), co-head of global banking & markets.

Financial Details:

• Solomon and Waldron each received $80 million retention packages in 2023, vesting over five years
• These packages provide incentive for Solomon to remain beyond his expected 2028 departure
• Goldman recently advised on SpaceX's record $86 billion IPO
• The bank managed over $1 trillion in M&A deals by June, a record half-year pace
• Goldman's banking & markets division generates approximately 75% of firm-wide revenue

Candidate Profiles:

Coleman brings broader experience across revenue and non-revenue functions, while Varadhan, a former swaps trader who made partner before age 30, runs Goldman's most profitable division. Prediction platform Kalshi gives Varadhan 10% odds for the COO role, with other candidates including Dan Dees (9%) and Marc Nachmann (9%).

Knock-on Effects:

If Coleman becomes COO, three executives are being discussed for CFO: Sheara Fredman (chief accounting officer), Ericka Leslie (chief administrative officer), and Carey Halio (global treasurer).

Market Implications:

The 157-year-old investment bank remains the top M&A advisor globally. Future leadership will face pressure to diversify beyond cyclical capital markets and dealmaking toward more stable wealth management revenue streams. Goldman reports earnings Tuesday, with performance scrutiny expected.

The bank emphasized no formal succession process has begun, calling current discussion "chattering class speculation."