David Soloman is a feared name across Wall Street. Soloman has done everything from being a pivotal trader to being a well-known DJ to now sitting as CEO of the bulge bracket bank Goldman Sachs. His name has recently cluttered the news due to the backlash of his unorthodox leadership methods. Still, to fully grasp his character and controversial behaviour, we should start from the beginning.
Born 1962 in Hartsdale, New York, David Soloman quickly liked Political Science, business, music and trading. He pursued this firstly at Hamilton College in New York, studying Political Science, and later at Harvard Business School, where he earned his Master's in Business Administration. In between this education, Soloman applied for a two-year internship at Goldman Sachs but was rejected. Solomon also continued his interest in music and DJing, his DJ name being "D-Sol." In the late 1980s, Soloman moved to Wall Street, where he joined the Investment bank Drexel Burnham Lambert. He quickly moved to Bear Stearns due to his expertise in high-yield debt. Here, he headed up the junk bond divisions and was in charge of selling risky bonds. In 1999, shocking many investors and economists, Soloman made a decision which heavily impacted the rest of his life: moving to the bulge bracket bank Goldman Sachs.
Starting as a member of the leveraged finance team at Goldman, he was quickly promoted over the next decade to lead the entire investment banking division. One of the most exciting deals Soloman worked on was the IPO for Lululemon, in which his unconventional personality also was on display when he arrived at the suits-only meeting in sweatpants (not something I recommend you try). Soon enough, it was time for Soloman to jump up the ladder, yet first, it is essential to highlight Soloman's success when heading up the Investment Banking division. He doubled profit margins from an already high 11% to 22% and rose sales by an astounding 70%. Due to this intense success, especially during the tumultuous time after 2008, Soloman was promoted as soon as the position opened to be Chief Operating Officer and President. Here, he implemented many prominent rules which changed the bank's culture, from loosening the dress code to using more technology daily. These achievements did not go unnoticed by the board of directors of Goldman. In 2018, when the CEO (Schwartz) announced his departure, Soloman was the clear successor in the eyes of the media and company. As CEO, Soloman continues his goal of altering the company's culture; one of the prominent changes was an attempt to lower working hours for employees. This summary of Solomon's years at Goldman seems like an astounding success, but he has recently been receiving intense backlash for his ways.
Things took a turn in 2020 when, during the pandemic, despite the insane profits taken by Goldman, many employees in his inner circle quit due to his high and unattainable expectations and his growing hobby of DJing huge parties. This behaviour of Soloman living carefree and luxuriously continues whilst reprimanding his employees for not working more hours. Another example of his careless and hypocritical behaviour is how Solomon flew the Goldman jets dozens of times to go on retreats in the Bahamas. He was also blamed for mismanaging a move into banking for ordinary customers, which caused a $3 billion loss. The murmur of discomfort has been growing over time, and the uproar is now considerable; many wonder if it's time for a new CEO. However, the question is if investors will close their eyes to this kind of behaviour in the world of finance if you can bring high returns to a bulge bracket bank.
In conclusion, Solomon has achieved immense success during his time on Wall Street, and people are wondering if now is the time for him to waive the white flag and leave his position as CEO of Goldman Sachs. However, it is undeniable that his impact on the world of finance has been immense, and he will leave large boots to fill for the next CEO. To finish on one of his key quotes, "I think we can do some work to be more admired and respected, and a little less envied and feared."
By Annika Bjerregaard. Edited by Aurore Lebrun and Annika Bjerregaard
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