Macaskill on markets: Can Tom Montag save Goldman Sachs’ DJ D-Sol?
Veteran banker Tom Montag is to join the board of Goldman Sachs in a bid to bolster support for embattled chief executive David Solomon. Weak second quarter earnings could make this task harder.
Mutiny was in the air in June. In Russia, Vladimir Putin survived an attempted coup by caterer-turned-mercenary leader Yevgeny Prigozhin. On Wall Street, a less consequential but still fiercely contested struggle was under way for the future of Goldman Sachs.
A series of media reports cited dissatisfaction among existing and former managers at the bank with the leadership of chief executive David Solomon.
This conflict has been rumbling on for some time, with Solomon’s side gig as DJ D-Sol often used as an excuse for critics to complain about his management style.
Insiders at Goldman that support the current regime retort, with some justification, that most stories are fed to the media anonymously and sometimes highlight issues such as disputes over bonuses or funding that are common to most investment banks.
That made a report of direct criticism of Solomon by his predecessor as chief executive, Lloyd Blankfein, noteworthy, as it tied a senior former leader to the supposed unhappiness of some past and present partners.
Shoring up support
Goldman has reacted with an apparent attempt to shore up support for Solomon. Tom Montag, a former co-head of securities at Goldman, who was once in the running for the chief executive position and later spent over a decade near the top of Bank of America, is expected to join the Goldman Sachs board soon.