Succession questions followed the leaders of the biggest U.S. banks onto their third-quarter earnings calls this week. Their answers ranged from a flat denial to a joke about a truck.
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Solomon Is ‘Really Enjoying the Job’
On Tuesday’s call for Goldman Sachs Group Inc. (NYSE:GS), analyst Glenn Schorr of Evercore ISI, raised the issue head-on.
“There were just some articles recently that talked about an acceleration. I do not know, David, if you want to address any of that just to keep the record straight,” Schorr said.
“I appreciate the question because some of the articles, the articles create noise,” CEO David Solomon replied. “So I just want to be clear. There is no succession, transition or timeline underway at Goldman Sachs. The board and I are singularly focused on our strategy to grow the firm and continue to serve our clients with excellence.”
In September, The Wall Street Journal reported that Goldman’s board had discussed a plan for president and COO John Waldron to take over as CEO as soon as late next year. Last year the board gave Solomon and Waldron retention packages of $80 million each, vesting over five years, according to Reuters.
“And I have to say, you know, at the point we’re at now where we see the benefits of the effort that the broad team has made, I’m really enjoying the job,” Solomon said.
The quarter gave him cover. Goldman’s profit rose 29% to $5.29 billion, or $17.01 a share, per Benzinga Pro data.
Moynihan Defers to the Board
Bank of America Corp. (NYSE:BAC) CEO Brian Moynihan got a similar question Wednesday and passed it to his directors.
“It’s the board’s decision. Ultimately our job as management is to tee up the talent in this company, which there’s a lot. We work on it all the time,” Moynihan said.
He also joked he could “get hit by a truck tomorrow.”
“And there’ll be a great leader for it next. And the board will make the decision when the time’s there. But we feel very good about the team we have and the leadership we have in the company,” he added.
Last September, the bank named Dean Athanasia and Jim DeMare co-presidents, and Moynihan said he planned to lead through the end of the decade, Reuters reported.
Bank of America shares fell 8% Wednesday after a revenue miss and a $1.2 billion Treasury penalty cut quarterly profit by 17%.
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JPMorgan Stays Quiet
Nobody raised succession on the Tuesday call for JPMorgan Chase & Co. (NYSE:JPM). In June, the largest bank in the U.S. named Doug Petno and Troy Rohrbaugh co-presidents and gave each a $30 million retention bonus.
CEO Jamie Dimon last addressed the topic on the July 14 second-quarter call: “The timing (for succession) is essentially the same, obviously completely up to the board,” he said last quarter.
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