Investor Advisor Recommends Separating Roles of Goldman CEO and Chairman

Goldman Sachs Faces Scrutiny Over CEO-Chairman Dual Role as ISS Calls for Separation

David Solomon, the chairman and CEO of Goldman Sachs, has been facing challenges from a big investor advisor recently. Institutional Shareholder Services (ISS) has recommended separating the roles of CEO and chairman to ensure more independent oversight of the company. This comes at a time when Goldman Sachs is under scrutiny for its consumer business and ongoing personnel issues.

Despite significant growth in stock under Solomon’s leadership, 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 female executive 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. Although Goldman’s governance committee found the dual CEO-chairman structure to be effective, ISS still recommends separate roles.

Goldman’s board of directors, including the next lead independent director, David Viniar, have received ISS’s recommendation to be voted for. However, there is skepticism about elevating a former Goldman executive to such a role. Despite the report from ISS and the upcoming shareholder meeting, Goldman Sachs has not responded to requests for comment.

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