Investor Advisor Recommends Separating Roles of Goldman CEO and Chairman

David Solomon, the CEO of Goldman Sachs for the past five years, is facing a challenge from a big investor advisor regarding the separation of roles. The proxy advisor, Institutional Shareholder Services (ISS), has urged Goldman to have separate CEO and chairman roles in order 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.

Under Solomon’s leadership, the stock has seen significant growth, but 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.

Despite the report from ISS and the upcoming shareholder meeting, Goldman Sachs has not responded to requests for comment. The board of directors, including next lead independent director David Viniar, are standing by their decision and structure despite skepticism about elevating a former Goldman executive to such a role.

By Sophia Gonzalez

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