David Solomon’s new role as sole president and chief operating officer will help focus Goldman Sachs as CEO Lloyd Blankfein assesses 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 has 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.
Schwartz and Solomon had taken on the responsibilities of Gary Cohn in December 2016 when Cohn left to become Donald Trump‘s top economic advisor. Cohn resigned his White House position last week after losing a battle with protectionists within the administration over 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 reins. “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 that Blankfein’s exact departure date still remains 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 were slightly higher Monday afternoon.