Goldman Sachs | CEO clinging onto power despite employee revolt

CEO clinging onto power despite employee revolt

The once-firm support pillars of David Solomon's tenure as CEO of Goldman Sachs are displaying signs of erosion, as internal unrest casts a shadow over his leadership.

Solomon, who has held the reins of the prestigious investment bank for nearly five years, now confronts one of his most challenging periods in office, characterised by waning morale and dislike of his leadership.

Reports of Solomon's leadership style, often characterised as blunt and uncompromising, have raised eyebrows in HR circles for years. He was one of the first high-profile instigators of a full office return, telling the media that remote working was “ aberration that we're going to correct as quickly as possible," despite pushback from staff.

In 2021, he caused outrage by seemingly endorsing junior employees within Goldman Sachs working 95-hour weeks, and refusing to dissuade workers from doing so.

In a recent damning piece published by New York Magazine, Solomon was asked if he was "too big a jerk" to guide the bank effectively.

Amid the swirling discontent within the bank's ranks, insiders reveal that discussions about the CEO's standing will feature prominently in an upcoming Board meeting, scheduled for next month.

Yet, while these internal concerns have undoubtedly punctured the veneer of Solomon's leadership, sources familiar with the thinking of several Board members have indicated that they continue to stand firmly behind him.

These Board members reportedly believe that the negative press and internal dissent are exaggerations, and they intend to shield their CEO from what they consider external noise.

However, no amount of Board support can shield Solomon from the reported growing sense of dissatisfaction from Goldman Sachs’ staff. Insiders have shared that productivity is allegedly nosediving as workers feel that their wellbeing is side-lined. With this in mind, there's a chance that Solomon could soon be facing an employee revolt. 

As the spotlight intensifies on Solomon's leadership, the dynamics within Goldman Sachs continue to evolve, leaving both internal stakeholders and external observers eagerly awaiting the outcome of the impending Board meeting and the actions that will be taken in response to the mounting challenges.

Image Credit: U.S. Secretary of Defense (Altered by HR Grapevine)

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