Goldman Sachs, the second largest investment bank has reported a very unexpected drop in their income in the fourth quarter. The company has said that the drop in their profit was around 66 percent and the drop was way much larger than expected.
The management points to the issue of poor performance in their wealth management business and also the difficulties they faced in deal-making as the prime cause of their drop in profit.
According to the statement by David Solomon, who is the current CEO of Goldman Sachs, the bank “tried to do too much too quickly.” David Solomon made it clear that the drop of 66 percent of the company to $1.33 billion or to $3.32 per share was much lower than the numbers expected.
The quarterly reports about the poor performance of the company came after a huge wave of layoffs that was initiated at Goldman Sachs.
Sources claim that the company laid off around 3,200 workers and the day the event took place was called ‘David’s Demolition Day’’ internally. More people are expected to lose their jobs in the coming weeks as the company is trying to balance off its huge loss.
As for his reply about the situation, the CEO of the company David Solomon stated that the company was trying to do too much too quickly.
According to him, the early hints about their miscalculations regarding their new policies and the problem in their execution were detected in early 2022 but the result was more than what they expected.
He also added that the company was not equipped with the talent they wanted to execute the changes that they have planned. He ended his response by saying that they were making adjustments to their shortcomings.
David Solomon Bio
David Solomon is the current Chief Executive Officer of Goldman Sachs. He took up the position on October 1, 2018, after the retirement of Lloyd Blankfein, the former CEO of the company. Solomon has a huge history with Goldman Sachs and he had been associated with the company for almost two decades.
Solomon served as the joint head of the investment division of Goldman Sachs from 2006 and he retained the position until 2016 – for ten long years. Before taking up the role of CEO, Solomon also worked as the president and COO of the company from 2017 to 2018.
Apart from his career as an investment banker, Solomon also has a track record in the music industry. He is passionate about EDM music and has produced and performed. Earlier he used the name DJ D-Sol but currently, he goes by the name David Solomon.
As a part of his music career, David Solomon has performed at various nightclubs and music festivals in some of the biggest locations like New York, Miami, and also The Bahamas.
David Solomon – Early Life And Career
David Solomon was born in Hartsdale, New York. The exact date of his birth is not known as of now but the year is speculated to be around 1962. His father was Alan Solomon and used to work as an executive vice president for a small publishing company while his mother Sandra worked as an audiology supervisor.
David attended Edgemont Junior-Senior High school and later he enrolled at Hamilton College in Clinton for his higher studies. He studies subjects like political science and government and earned his bachelor’s degree.
David had the ambition to work at Goldman Sachs right from start but his application was rejected by the company. Due to this reason, he joined Irving Trust, which is an American commercial bank with its headquarters in New York.
David Solomon – Career At Goldman Sachs
Before joining Goldman Sachs, David Solomon worked at Bear Stearns, which is also a New York-based investment bank. David enjoyed a very good position at the firm and he was expected to take the top positions in the company by many.
So, his decision to join Goldman Sachs came as a shock to some of his contemporaries. He joined the company around 2006 and served as the lead of the Goldman Sachs investment division. Reserved at the position for almost ten years, till 2016.
His involvement with the company brought in many changes at the firm like modernized computer systems, an increase in payment for programmers, a real-time performance review, loosened dress codes, and many more of the kind.
David was able to earn a very huge sum as his salary and also as his incentive from the company, making a huge contribution to his net worth.
The then-co-chief operating officer of the company and president Schwartz announced his retirement in 2018, making David Solomon the second in command for the company. Later as the CEO of the company resigned from his position, David took up the position and had been serving as CEO since 2018.
David Solomon – Net Worth
Serving as the CEO of the world’s second-largest investment bank, the amount that David Solomon receives as salary and incentives is expected to be a large number.
From different reports available, the net worth of David Solomon is calculated to be $79.3 million. One of the main contributing factors to his huge net worth is that David Solomon owns around 7,400 units of Goldman Sachs shares. The value of the units owned by Solomon is calculated to be worth over $40,035,814.
As there are fluctuations in the market owing to the recent event at Goldman Sachs, there can be differences in these mentioned figures.
In addition to his income from company shares, David Solomon is alleged to get an extra sum of $23,657,7000 for serving as Chairman of the Board and CEO of the company.
David Solomon – Music Career
It comes quite as a surprise to many that David Solomon has a very active career in music too. He is a popular music artist and DJ who used to perform under the name DJ D-Sol but now goes by the name David Solomon.
Throughout his music career, he has produced a number of electronic dance music, which is his main area of work. David has also performed at different music festivals and also at popular nightclubs in some of the most popular party destinations in the world like New York, The Bahamas, and Miami.
He also maintains an Instagram account @davidsolomonmusic to publish updates about events and projects from his music career. The account currently has 54.3k followers.
David is very active in his career in music. His Spotify profile is said to have around 5550,000 listeners monthly.
The latest release from David which was titled ‘Someone Like You’ was placed at #4 on the Billboard dance club chart in November 2022. He also performed as the opening act for The Chainsmokers for a charity event named ‘Safe & Sound’ in 2020.
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David Solomon – Personal Life And Family
David Solomon became a permanent resident of The San Remo on the Upper West Side of Manhattan in 2002. David Solomon got married to Mary Elizabeth Solomon in 1989. The couple got married in New Jersey.
They lived together till 2018 when the couple got divorced. They have two children from their marriage but not much information about their kids is available to the public.
From updates through social media and other sources, David and his ex-wife are said to be good friends even after their divorce and they often engage in activities along with their children.