Goldman Sachs CEO David Solomon faced a tough challenge at the company’s annual meeting as shareholders voted on a proposal to separate his roles as CEO and chairman. While Solomon ultimately defeated the proposal, the measure received double the support it did in the previous year.
The preliminary tally showed that 33% of shareholders were in favor of the split, up from 16% in 2023. The National Legal and Policy Center, which sponsored the proposal, expressed disappointment that the majority did not support their efforts to separate the roles.
Critics of the dual role held by Solomon argued that it shielded him from accountability for past missteps, including the company’s costly foray into consumer banking. Similar proposals at Bank of America were also rejected, with 31% of shareholders in favor of separating the CEO and chairman roles held by Brian Moynihan.
The pressure to split the CEO and chairman roles in the US has been growing since the 2008 financial crisis, with many companies within the S&P 500 opting to separate the roles. Despite the challenges faced by Solomon in the past year, including a decline in profits and high-profile departures from the firm, he still saw a 24% increase in his annual compensation to $31 million.
Shareholders at JPMorgan Chase and BlackRock will also face similar proposals in the coming months, highlighting the ongoing debate over the best leadership structure for financial institutions. Solomon’s ability to navigate these challenges will be closely watched by Wall Street observers as he continues to lead Goldman Sachs through a period of change and uncertainty.