- Push-out Score suggests push-out forces
- After around 12 years in the position
- Praise for Blankfein
- David Solomon taking over
- Blankfein spoke at length and said 146 words
(exechange) — New York, July 17, 2018 — Lloyd Blankfein, chief executive of Goldman Sachs, leaves the position. As announced by The Goldman Sachs Group, Inc. in a news release on Tuesday, July 17, 2018, Lloyd C. Blankfein leaves his post as Chief Executive Officer at the investment bank after around 12 years in the role, effective September 30, 2018.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.4 years, according to data compiled by exechange. Only 38 percent of the CEOs who departed over the past 12 months left the position after more than 10 years.
Blankfein leaves the company effective December 31, 2018.
Blankfein’s duties will be taken over by David M. Solomon, currently Chief Operating Officer of The Goldman Sachs Group, Inc.
No reason given
In the announcement, Goldman Sachs did not explicitly explain the reason for Blankfein’s move, leaving room for speculation.
Precise information about Blankfein’s future plans was not immediately available.
Goldman Sachs said that Lloyd C. Blankfein “will retire as Chairman and Chief Executive Officer and that the Board of Directors has appointed David M. Solomon to succeed him in both roles.”
Goldman Sachs further said: “Mr. Blankfein will step down as Chief Executive Officer on September 30, 2018, and will retire from the firm and as Chairman of the Board at the end of the year. Mr. Blankfein will accept the title of Senior Chairman after his retirement.”
Share price decline
The change follows a decline in the share price of The Goldman Sachs Group, Inc. since March 2018.
In the position of CEO since 2006
Lloyd Blankfein has been the Chairman and Chief Executive Officer of The Goldman Sachs Group, Inc. since June 2006, and a Director since April 2003.
He serves as a member of the Goldman Sachs Management Committee and Board of Directors.
Previously, he had been the firm’s President and Chief Operating Officer and prior to that, from April 2002 until January 2004, he was a Vice Chairman of Goldman Sachs, with management responsibility for Goldman Sachs’ Fixed Income, Currency and Commodities Division (FICC) and Equities Division.
Prior to becoming a Vice Chairman, he had served as Co-Head of FICC since its formation in 1997.
From 1994 to 1997, he headed or co-headed the Currency and Commodities Division.
Blankfein is not currently on the board of any public company other than Goldman Sachs.
He is affiliated with certain nonprofit organizations, including as a member of the Dean’s Advisory Board at Harvard Law School, the Board of Dean’s Advisors of Harvard Business School, the Dean’s Council of Harvard University, the Advisory Board of the Tsinghua University School of Economics and Management, the Board of Overseers of Weill Cornell Medical College and the Board of the Partnership for New York City.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Lloyd Blankfein’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.
Read the full story in the exechange report 30.2018 ($).