David Solomon’s new role as sole president and chief operating officer will help focus Goldman Sachs as CEO Lloyd Blankfein assess when to exit, CNBC’s Jim Cramer said Monday.
“This gives [Solomon] a chance to grow” into the chief executive job, said Cramer, a Goldman alum, who’s known Blankfein for a long time.
At the time same, Harvey Schwartz, who had served as co-president and co-COO at Goldman along with Solomon, decided to retire in April.
Cramer said Schwartz had to go because the board knew that Solomon was the heir to Blankfein.
In December 2016, Schwartz and Solomon had taken on the responsibilities of Gary Cohn when he left to become Donald Trump‘s top economic advisor. Cohn recently resigned his White House position after losing a battle with protectionists within the administration when the president decided to impose import tariffs on steel and aluminum.
The Solomon announcement follows a Wall Street Journal report Friday that the 63-year-old Blankfein is preparing to step down by the end of 2018 after a 12-year tenure that saw the stock soar more than 70 percent.
Cramer said last week that Blankfein may be afraid to lose talent by not stepping down and letting someone else take the reigns. “Blankfein is deeply committed to letting a newer generation” take the lead, Cramer said Friday. “He is an ultimate team player and really wants new blood and he doesn’t want to stay there too long.”
Cramer cautioned on Monday, however, the Goldman chief’s exact departure date still remains very unclear. “There is a sense that it was going to be year end. I’m not getting that. I am getting that this is a great chance for Solomon to grow.”
Goldman shares rose to a record high after Monday’s news.
