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Goldman Sachs chief executive David Solomon delivered an unusually expressive message late last week as Russia’s invasion of Ukraine intensified.
“None of us can fail to see this for what it is: the invasion of a sovereign state, as flagrant a violation of international law as any we’ve seen in recent memory,” he wrote in a missive to the firm’s global staff of about 40,000. “Our hearts go out to the Ukrainian people and all those standing in harm’s way—their bravery and resilience are an inspiration to the world.”
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In his memo, Solomon said the 153-year-old banking giant is “winding down its business in Russia” in compliance with U.S. sanctions, and committing $2 million to organizations offering food, clothing, medical care, and other forms of emergency assistance to Ukrainian families.
The invasion presents Solomon, 60, with a new test as a wartime CEO. Following nearly 20 years at Goldman, running various units including the investment banking operation, Solomon was appointed chief executive in 2018. Since taking over, he has pushed to reduce the firm’s dependence on revenue from stock, bond, currency, and foreign exchange-related businesses and diversify by enhancing its consumer banking, wealth management and asset management divisions. The new strategy has been controversial and Solomon has recently been forced to defend it as financial markets have become increasingly volatile since the start of 2022.
This year, Solomon’s chief challenge will be driving the bank to match the stellar performance of 2021, when it generated record revenue and profit, and saw its highest return on equity since 2007. For his role in last year’s growth, Goldman’s board of directors awarded Solomon with an eye-popping $35 million pay package.
Before the fighting in Ukraine began, he and his executive team were squarely focused on…
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Source : time
