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Goldman Sachs CEO David Solomon now has the clearest public indication yet of when the bank’s long anticipated leadership transition could occur. A Wall Street Journal report from late Monday said the board has discussed a plan that could see Solomon step down as soon as the end of 2027 or in 2028.

The potential timetable would position Goldman’s No. 2 executive, John Waldron, to replace Solomon at the top of the Wall Street bank. The report cited unnamed sources familiar with the discussions.

Any plan would still require approval from Goldman’s board in the coming months, according to the report. That leaves the timing under consideration rather than settled, even as years of public preparation for an eventual transition appear to be taking clearer shape.

Goldman spokesperson Tony Fratto said succession is a regular subject for the board. “Of course the Board regularly discusses succession, as we disclose in our filings,” Fratto said in an emailed statement to Yahoo Finance.

Fratto rejected the notion that the bank has established a firm departure date for Solomon. “But there is no definitive timeline for succession at Goldman Sachs,” he added, describing assertions about the timing as speculative.

Investors responded modestly to the report, with Goldman shares rising slightly in extended trading. The stock is up more than 4% for the year, reflecting a strong period for the bank as its central Wall Street operations benefit from active markets.

A departure at the end of 2027 or during 2028 would come after Goldman’s stock staged a dramatic advance under Solomon. Since he officially became CEO eight years ago, the shares have quadrupled, reaching $916 at Monday’s closing price.

Solomon has overseen a particularly strong year for Goldman’s core trading and dealmaking businesses. AI driven capital raising, an upswing in corporate mergers, and unusually active markets this year have helped accelerate growth across those franchises.

The CEO, who turns 65 in January, addressed succession as recently as July. While acknowledging that leadership would eventually change, he pushed back against suggestions that his departure was close.

“I’m really excited about the firm and what the firm can accomplish over the course of the next three to five years,” Solomon said when CNBC’s David Faber asked him about succession. Solomon then added, “At some point in time, there’ll be a transition, but it’s not now.”

The discussion comes after a tenure that has included both a steep increase in Goldman’s share price and serious operational setbacks. Five years into the role, Solomon entered 2023 facing mounting pressure during what became the company’s most challenging year of the previous decade.

During the summer of 2023, Goldman reported its lowest quarterly profit in three years. Senior management was contending with job cuts, a slump in dealmaking, reports of unrest among partners, and a difficult retreat from the bank’s failed attempt to build a consumer banking operation.

Waldron, 57, joined Goldman one year after Solomon and developed his career as an investment banker. He became chief operating officer in October 2018, placing him directly beneath Solomon in the firm’s senior leadership structure.

His status as a likely successor became more apparent after Goldman’s difficult period, which included departures by several prominent executives and changes to the board of directors. Those shifts sharpened attention on how the bank intended to manage its eventual leadership handoff.

Last year, Goldman’s board awarded Waldron a retention bonus covering five years that was then valued at $80 million. Solomon received a corresponding award, with Goldman explicitly citing its goal of maintaining “a strong succession plan for the future of the firm.”

For now, Solomon remains in charge as Goldman’s main Wall Street businesses operate from a position of strength. The board discussions nevertheless offer the most specific public window yet into when Waldron could take control, even as Goldman insists that no definitive timetable has been adopted.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.