Investor Advisor Recommends Separating Roles of Goldman CEO and Chairman

David Solomon has been serving as the chairman and CEO of Goldman Sachs for the past five years. Recently, he has been facing a challenge from a big investor advisor, Institutional Shareholder Services (ISS), who has recommended separating the roles of CEO and chairman to ensure more independent oversight. The annual meeting vote on this issue comes at a time when Goldman Sachs is under scrutiny for its consumer business and ongoing personnel issues.

Despite the fact that under Solomon’s leadership the stock has seen significant growth, recent issues facing Goldman Sachs have put him under a harsh spotlight. The bank has been working on damage control after reports about a lack of female leadership, including women leaving the company during Solomon’s tenure. One of the female executives who left, Stephanie Cohen, led the bank’s consumer business ventures, which ended up in losses and subsequent retreat.

ISS has also expressed concerns about Solomon’s decisions in the consumer sector, which have resulted in losses and further human capital issues. Even though Goldman’s governance committee found the dual CEO-chairman structure to be effective, ISS still recommends separate roles.

Goldman’s board of directors, including the next lead independent director, David Viniar, have received ISS’s recommendation to be voted for. There is skepticism about elevating a former Goldman executive to such a role, but the board is standing by its decision and structure. Despite the report from ISS and the upcoming shareholder meeting, Goldman Sachs has not responded to requests for comment.

By Samantha Johnson

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