A top Goldman Sachs banker who was seen as a candidate to one day succeed embattled CEO David Solomon revealed he is retiring — a surprise exit that signals Solomon’s consolidation of power, according to reports.
Jim Esposito, 56 — a college wrestling enthusiast who played a key role in the merger of Goldman’s investment banking and trading units — made the decision to leave after it became clear that the path to eventually becoming CEO or president was blocked, according to The Wall Street Journal.
Solomon — who has irked the rank-and-file with a sharp-elbowed management style and botched strategic moves — has made it clear that he has no plans to step aside in the near future, sources told The Journal.
Esposito, meanwhile, had emerged as one of the key internal critics of Solomon’s ill-fated foray into consumer banking — a move that the bank has mostly abandoned, Bloomberg reported on Monday.
The New Jersey-born banker’s standing at Goldman had “taken a hit” after making a “vocal push” for Goldman to return its focus to the key divisions he led and abandon a search for new business lines, according to the outlet.
Esposito — whose quirky communications to staffers included a memo that tied asset prices to pop star Lady Gaga’s stolen dogs, according to Bloomberg — told employees in a Monday missive that he lately had “a feeling of merely going through the motions which isn’t in my DNA nor what makes this place special.”
“No formal plans for what comes next, which feels like the ultimate luxury after going full out for decades,” Esposito added. “Standing at a crossroads, sometimes you have to pause to acknowledge the chapters you’ve written.”
John Waldron, Goldman’s president, is also reportedly eyeing Solomon’s title. But Solomon appears to be firmly ensconced in his perch, particularly after winning the confidence of Goldman’s board of directors last summer.
“Jim has also helped our businesses navigate extraordinary change in our industry, including structural developments driven by technology and regulation,” Solomon wrote of Esposito in the Monday memo obtained by The Post.
“On a personal note, I am grateful for Jim’s counsel, friendship and sense of humorr during our many years of collaboration,” Solomon added.
The Wall Street giant merged its banking and trading division in 2022 in a shakeup that eventually saw the firm deepen its focus on the traditional mainstays and step back consumer banking.
Esposito jointly runs the merged division alongside Dan Dees and Ashok Varadhan.
Esposito joined Goldman Sachs in 1995 as a salesperson in the emerging markets debt division. By 2006, he had risen to the position of partner. He served as co-head of both the investment banking and the trading divisions when they were standalone units.
Upon his retirement, he will hold the title of senior director.
Esposito has also served as the co-chair of Goldman’s partnership committee since 2021.
Earlier this month, Goldman Sachs posted its lowest annual profit since 2019 following losses from a failed expansion into consumer banking.
The bank reported net income of $8.5 billion for 2023 — a 24% drop from 2022 and the lowest level the bank has seen in four years.
With Post Wires
This story originally appeared on NYPost
