All Segments
David Solomon, CEO, Goldman Sachs
37 segments available
David Solomon, who took over as CEO of Goldman Sachs in 2018, talked about his career and the role of timing and luck at this View From The Top event. After finishing his undergraduate degree, Solomon didn’t know what he wanted to do. Following the direction of some of his friends, he got into banking and was surprised by how much he loved the field. "It’s a long journey – the fulfillment and the success come from the journey, not from thinking that you have it all figured out." Solomon also shared why he believes in bringing his full self to work and how that value has helped him steer the organization in a new, and, for a bank, a radical direction. Solomon was interviewed by Michael Lewis, MBA ‘20.
Segments Timeline
The Dual Identity of David Solomon
David Solomon introduces himself as both the CEO of Goldman Sachs and a DJ, highlighting the duality of his identity. He reflects on the curiosity surrounding his career path and the unique blend of roles he embodies, setting the stage for a deeper exploration of his journey.
"foreign [Music] David welcome to Stanford we are so excited to have you at the view from the top series and I'm thrilled to uh to have the opportunity to spend some time with you tonight so if it's ok..."
Reflections on College Days
Solomon shares his experiences as a student at Hamilton College in the early 1980s, contrasting his journey with that of today's students. He discusses the lack of clarity he had about his career path and the societal expectations he faced, particularly regarding traditional professions.
"you could explore any other side that you'd like if there's a third let me know we'll get to it there are a few so we have an audience of mostly students I would love to start to think about where you..."
Stumbling into Finance
David recounts how he unexpectedly found himself in the finance industry after initially planning to attend law school. He describes the early 1980s Wall Street landscape and how he secured his first job at Irving Trust Company, emphasizing the role of chance in his career trajectory.
"that I would have come to see the CEO of Goldman Sachs speak if the CEO of Goldman Sachs was ever on the Hamilton College campus which well actually he might have been Hamilton College has a great has..."
Navigating Early Career Challenges
Solomon reflects on his early career moves, including his time at Drexel Burnham and the lessons learned from working at firms that no longer exist. He discusses the volatility of the finance industry and how these experiences shaped his understanding of success and failure.
"I it was the early 80s Wall Street really hadn't exploded if you're if you're a student of finance of the history of Finance the 1960s 70s into the early 80s Finance was really nowhere the stock marke..."
The Rise and Fall of Drexel Burnham
David shares insights about his tenure at Drexel Burnham, a firm known for its innovative approach to junk bonds. He discusses the entrepreneurial spirit of Wall Street in the 1980s and the impact of Mike Milken's downfall on his career, illustrating the unpredictable nature of the finance world.
"needed a job and in those early years you moved to firms that were giants on Wall Street at the time from directional Burnham to Bear Stearns later there's somewhat of an iron you're developing yeah e..."
Family Expectations and Career Choices
Solomon opens up about the pressures he faced from his family regarding his career choices, particularly the expectations to pursue medicine. He reflects on the challenges of navigating familial expectations while forging his own path in finance.
"to Business School and um and while I was applying at a cocktail party I met a headhunter um a guy whose name is Gary Goldstein who had a firm called the Whitney group still exists I mean he's still a..."
Lessons from Early Setbacks
David discusses the humbling experience of losing his job at Drexel Burnham and the importance of resilience in the face of setbacks. He emphasizes the value of learning from failures and how these experiences contributed to his growth as a leader.
"started working at Drexel Burnham it was a really interesting experience he had a lot of rope it was very entrepreneurial it was very open um you know Wall Street in the 1980s was kind of the entrepre..."
The Impact of Family on Career
Solomon reflects on the profound influence his parents had on his professional and personal development. He shares anecdotes about their expectations and the lessons he learned from them, highlighting the balance between familial pressure and personal ambition.
"what I'm experiencing today um but there were a lot of things with my mom you know my mom my mom my mom didn't like that I didn't pursue a profession my mom didn't like that I married I was Jewish boy..."
Transitioning to Goldman Sachs
David discusses his lateral move to Goldman Sachs and the uncertainty he felt about his future there. He reflects on the culture of meritocracy at Bear Stearns and how his experiences shaped his approach to leadership and career advancement.
"and they're gone looking ahead a few years when you went into Goldman as a lateral hire so you didn't go through the ranks obviously it wasn't clear or at least to me it wasn't clear what the path for..."
Opportunities and Decisions
Solomon reflects on the various opportunities he had during the 1990s, including a potential move to Carlisle. He discusses the allure of big organizations and how his decision to join Goldman Sachs was influenced by his desire to be part of a leading institution in the finance industry.
"there and we started to really really have some success the business really went, away, part, of, the reason, Drexel, went out of business is in 1990 there was a massive credit contraction um if you g..."
The Venetian Hotel Financing
In this segment, Solomon recounts a pivotal moment when he competed for a significant financing deal for the Venetian Hotel in Las Vegas. He highlights the importance of relationships in business and how his prior experience positioned him favorably in this competitive environment.
"understood the business more to appreciate its limitations and you know the advantages that existed in other businesses and I had a number of opportunities that came my way during the 1990s Summit wer..."
Joining Goldman Sachs
David Solomon describes the moment he decided to join Goldman Sachs, emphasizing the importance of being part of a prestigious organization. He reflects on how this decision was perceived as a step back by some but ultimately proved to be a pivotal move in his career.
"the development of casino hotels it was actually a good business because the banks wouldn't lend money the casino business in the 1980s had really been controlled by the mob and it was finally cleaned..."
The Stress of Transition
Solomon candidly shares the personal stress he experienced while transitioning from Bear Stearns to Goldman Sachs. He humorously notes the physical toll it took on him, illustrating the weight of such a significant career decision.
"industry and you're going to you know really this is really what you want to do you know career-wise you might as well play for the Yankees and I had to take a step back you know people viewed it as a..."
The 2008 Financial Crisis
In this segment, Solomon discusses the 2008 financial crisis and its impact on the banking industry. He reflects on the systemic failures that led to the crisis and the lessons learned from navigating such unprecedented challenges.
"strategy, okay, but, um but, it, actually, is quite effective if you're really you're really stressed out and you're not eating yeah so that is the third dimension you said there's a third side to you..."
Understanding Systemic Risks
David Solomon shares his insights on systemic risks in finance, emphasizing the long-term build-up of issues that led to the 2008 crisis. He critiques the oversimplified narrative that blames banks for the collapse, highlighting the complexity of the situation.
"imploding I I over time is is this became my career I spent a lot of time you know reading about and studying you know systemic risks systemic failure kind of the history of Finance going back 150 200..."
The Collapse of the Housing Market
Solomon explains the factors that contributed to the collapse of the housing market during the financial crisis. He discusses the excessive leverage and misguided beliefs about home values that ultimately led to widespread economic turmoil.
"know what occurred over a long period of time whenever there is whenever there's crisis in financial markets it comes from build-ups over a long period of time comes from excessive leverage over a lon..."
Navigating the Crisis
In this segment, Solomon recounts his experiences during the financial crisis, describing the fear and uncertainty that permeated the industry. He reflects on the need for systemic intervention and the lessons learned from this tumultuous period.
"and so if you were in the middle of it I mean it was it was it was horrifying um but it wasn't horrifying because you were at a bank it was horrifying because you're in the middle of understanding how..."
Leadership During Crisis
David Solomon discusses the leadership challenges faced during the financial crisis and the difficult decisions made to stabilize the system. He emphasizes the importance of strong leadership in navigating such crises and the long-term implications for the industry.
"remember and some of this has been written about this was written about barbarians the gate being up in ge's offices um in the fall of 2008 GE and had 85 billion dollars of commercial paper outstandin..."
Becoming CEO of Goldman Sachs
Solomon shares the story of how he became CEO of Goldman Sachs, highlighting the role of timing and luck in his ascent. He reflects on the circumstances surrounding his appointment and the significance of leading the firm during a transformative period.
"start to dive into that sure kind of that picture uh starting with the change in leadership so we all know there was an official date that you took office taking over as CEO but could you walk us thro..."
The Role of Luck in Career Progression
In this segment, Solomon discusses the unpredictable nature of career paths and the influence of luck on his journey to becoming CEO. He reflects on how external factors and timing played crucial roles in his career, offering insights on the importance of adaptability and seizing opportunities.
"be the CEO well he got sick and had lymphoma in 2008 2015 and you know I think came close to stepping aside at that point if that had happened and he's completely healthy now but if that had happened ..."
Embracing the Journey
David Solomon emphasizes the importance of viewing one's career as a journey rather than a series of fixed goals. He encourages young professionals to embrace their experiences, enjoy the ride, and understand that fulfillment comes from the journey itself, not just from achieving specific milestones.
"conference room next to his office and my office was next to the conference room and when Lloyd wanted to talk to me he had a tendency he he basically go David and um you, could, hear, out, of, his, o..."
Advice for Young Professionals
Solomon offers practical advice to young professionals navigating their careers. He shares a story about a young woman seeking career guidance, highlighting the value of appreciating one's current situation and the importance of enjoying the process rather than constantly seeking the next step.
"um but, it's, it's, a, humbling, moment and I want to go back to the kind of thoughts that you felt right afterwards but you touched for a bit on the role of luck and just the way things worked out an..."
Evolving Goldman Sachs
In this segment, Solomon discusses the evolution of Goldman Sachs under his leadership. He addresses the need for organizations to adapt and change over time, explaining how he aims to steer the firm towards relevance and success in a rapidly changing financial landscape.
"know the journey is one where you know there are times where it's it's clicking and there are times when it's not you know one of the things you know one of the things that I used to say is that if yo..."
Evolving Goldman Sachs
David Solomon discusses his approach to leading Goldman Sachs and the importance of evolution within the organization. He emphasizes that Goldman Sachs has thrived for 150 years by adapting to changes in the financial landscape, particularly after the financial crisis. Solomon highlights the need for growth and modernization to attract talent and remain competitive in a changing banking environment.
"as I lead Goldman Sachs I'm evolving it you know I I I read the press and the storyline around the first year and a half of my tenure and you know the the Press would make it seem like I'm turning the..."
The Impact of the Financial Crisis
Solomon reflects on how the financial crisis reshaped the banking industry, leading to significant changes in the structure of banks and investment banks. He notes the unwinding of Glass-Steagall and the transformation of investment banks into full-service banks, which has altered the competitive landscape. Solomon stresses the need for Goldman Sachs to adapt its business model to ensure growth and relevance.
"that had Global aspirations and there were five investment banks in the United States that had Global aspirations Goldman Sachs was the largest of those five investment Banks investment Banks dealing ..."
Purpose-Driven Business
In this segment, Solomon articulates his vision for Goldman Sachs as a purpose-driven organization. He emphasizes the importance of sustainability and social impact, discussing how the firm can leverage its resources to make a difference in areas like healthcare and economic opportunity. Solomon believes that aligning business goals with societal needs is not only ethical but also beneficial for the company's performance.
"generation or another couple of decades The Firm has to be different than it's been it was very closed it was very private it was very secretive it was very steadfast in its ways it wasn't open and I'..."
The DJ Identity
David Solomon shares his journey as a DJ and how this passion has become a public part of his identity. He recounts how he became interested in DJing, the influence of music on his life, and how it has changed his perception within Goldman Sachs. Solomon explains that embracing his DJ persona has helped him connect with younger employees and humanize his leadership style.
"there's a strong business case for it so we're going to go to questions in a few minutes I want to ask just in these last couple minutes about you okay we we touched a lot on the one version of David ..."
Connecting Through Music
In this segment, Solomon discusses the positive impact of his DJing on his relationships within Goldman Sachs. He describes how his passion for music has made him more approachable and relatable to younger employees, fostering conversations that bridge personal interests and professional discussions. Solomon reflects on how this connection has transformed his leadership experience and enhanced his engagement with the firm's culture.
"um it um it um I went down to kind of understand the model this was the beginning of bottle service you know house music and Club Music electronic dance music were really exploding and DJs were starti..."
Redefining Leadership in a Modern World
Solomon reflects on the changing dynamics of leadership, emphasizing the need for modern leaders to adapt to the expectations of younger employees. He contrasts past workplace norms with today's emphasis on discussion and individual expression, highlighting the importance of authenticity in leadership.
"it humanizes the firm and by the way it's just just not about me it's allowing other people at the firm to be their authentic selves to bring their offensive their authentic selves to work and I just ..."
Changing the Dress Code at Goldman Sachs
David Solomon discusses the significant shift in Goldman Sachs' dress code, which reflects the evolving culture of the organization. He explains how the new guidelines promote individual expression and align with contemporary workplace norms, emphasizing the importance of appropriateness over formality.
"really evolved and I understand that but I mean it's you know I looked people wore shoes with laces I wear shoes with laces I hated shoes with laces they'd always get inside you're always tying them y..."
Navigating Challenges in Emerging Markets
Solomon addresses the reputational challenges Goldman Sachs faced in Malaysia, discussing the complexities of doing business in emerging markets. He emphasizes the need for higher standards and accountability in governance, reflecting on lessons learned from past experiences.
"matters and that got thousands of newspaper articles I mean it's really it's a little bit more visibility than we need and a little bit of fake news along, the, way well, I, appreciate, the Candor I I..."
Attracting Top Talent in a Competitive Landscape
David Solomon outlines the strategies Goldman Sachs employs to attract and retain top talent in a competitive environment. He emphasizes the importance of creating a supportive workplace culture, investing in employee development, and adapting to the evolving expectations of younger professionals.
"that I think to your point one of the things that you have to step back and you have to recognize is that when you do business in these emerging economies a bunch of the things that we take for grante..."
Establishing Work-Life Boundaries
Solomon discusses the need for establishing work-life boundaries for junior bankers at Goldman Sachs. He reflects on the shift from past expectations of constant availability to a more sustainable approach, advocating for a balanced work schedule that promotes well-being and productivity.
"ago and so it requires you know one creating an environment that people want to work in and want to be a part of it requires enormous investment you know in people and training and development you kno..."
Innovative Work Policies
In this segment, Solomon describes the implementation of a new policy that restricts work hours from Friday night to Sunday morning, allowing employees to plan their weekends. He emphasizes the positive outcomes of this bold initiative, which aimed to improve employee satisfaction and productivity.
"so we started tracking how much every young person was working we could track it because we knew when they walked in the building we knew when they left the building and we started tracking it we star..."
Embracing Change and Learning
Solomon reflects on the importance of adapting to societal changes in the workplace. He encourages a culture of experimentation and learning from failures, emphasizing that trying new approaches can lead to better outcomes for both employees and the organization.
"um and um and it's it's a great example of when something's not working right or the societal change has changed the way things work try something different and recognize you might fail it might not w..."
Music as a Motivational Tool
In a light-hearted segment, Solomon shares his relationship with music and how it influences his daily routine. He discusses his extensive music playlists and how he uses music to set the mood for different situations, revealing a personal side to his leadership style.
"office in general when I get into the car I'd like to put some music on but instead I'm kind of looking at my phone and making sure that before I get into my first meeting at 8 o'clock anything that h..."
The Release of a New Track
As the conversation wraps up, Solomon introduces his upcoming music release, describing it as a commercial house dance track. He shares his excitement about blending his professional life with his passion for music, showcasing the multifaceted nature of his identity as a CEO and DJ.
"the things, I, do, do, and, I, know, I'm, way off the game has no rules Direction what I do do is I'm constantly sent music now um you know every single day and so when I get a five minute break in th..."