Why the media’s whisper campaign about a Goldman Sachs change at the top is misleading gossip, at best

The business media's recent speculation about a potential change at the top of Goldman Sachs is nothing more than misguided gossip, not genuine news. This unwarranted chatter was sparked by the revelation that John Waldron, a longtime protégé and loyalist of CEO David Solomon, is being considered as a possible future heir apparent to the company.

However, this development is far from a cause for alarm. The Goldman Sachs board, known for its meticulous approach to succession planning, has consistently followed the industry's best practices in identifying and grooming capable successors.

The report about Waldron's possible promotion was based on a normal succession planning process, which all good boards are expected to undertake. This includes ongoing reviews of internal and external candidates, evaluating potential trial assignments for them, and not making any promises of the CEO position to top candidates. The fact that Waldron's name was leaked to the press as a potential future CEO has led to erroneous speculation about Solomon's imminent departure from the company.

However, this is not the case. Solomon remains a widely admired and top-performing CEO, and Waldron is simply being considered as one of several possible candidates for the position.

These succession principles have been followed by the Goldman Sachs board for decades, and they are not unusual or unprecedented. The speculation that Solomon is headed out the door is unfounded, and the mere mention of alternative candidates from within or outside the company does not suggest any imminent change in leadership. The media's undue focus on this story has the potential to undermine the incumbent CEO, disparage the heir apparent, and create unnecessary distractions within the company.

In contrast, focusing on genuine performance metrics and realistic succession yardsticks would be more beneficial for the company and its stakeholders.