Dual CEO-Chairman Role under Pressure: Institutional Shareholder Services Suggests Separation for Goldman Sachs David Solomon.

Investor Advisor Recommends Separating Roles of Goldman CEO and Chairman

David Solomon, who has been the CEO of Goldman Sachs for five years, is facing pressure from Institutional Shareholder Services (ISS) to separate his roles as CEO and chairman. This proposal comes amidst scrutiny of Goldman’s consumer business and personnel issues.

ISS, a proxy advisor that advises investors on voting at shareholder meetings, has given “cautionary support” for Goldman’s executive pay and has raised concerns about the lack of female leadership under Solomon’s leadership. One of the women who left under his leadership was Stephanie Cohen, who led the bank’s consumer business and resulted in significant losses.

Despite his success as CEO, with the stock soaring 83%, recent issues have brought increased attention to Solomon’s leadership. ISS recommends that investors vote for Goldman’s slate of directors, including the next lead independent director David Viniar, who has been on the board since 2013. Some may question this decision to appoint a former Goldman executive at this time.

Goldman Sachs did not provide a comment on this matter but its governance committee reaffirmed that the dual CEO-chairman role is the most effective leadership structure after an evaluation in December.

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