Goldman Sachs CEO's growth strategy gets traction with board-sources

investing.com:

By Saeed Azhar and Lananh Nguyen

NEW YORK (Reuters) — Goldman Sachs (NYSE:GS)' board supports CEO David Solomon's focus on its core Wall Street businesses and asset management, according to two sources close to Solomon.

The executive is tasked with reviving the bank's stock, even as scepticism from some investors and employees grows.

The 12-member board of directors is intensely focused on Solomon's refreshed strategy, one of the two sources told Reuters, after the firm's foray into the consumer banking business saddled Goldman with losses and left if lagging rival Morgan Stanley (NYSE:MS).

The expected arrival of Tom Montag, who was approached by Solomon, also signals to insiders that the chief executive and his turnaround plans have internal support at the top, separate sources said.

The assessment, which follows Goldman's recent board meeting in India, has not been previously reported. It shows that the circle around Solomon believe in his ability to revive the bank's fortunes.

The bank's shares have fallen about 2% in 2023, lagging competitors Morgan Stanley and JPMorgan Chase (NYSE:JPM) where shares have risen 8% and 15%, respectively. Even so, Goldman's stock is still outperforming the S&P banks index, which is down more than 3% this year.

Goldman is trading at a forward price-to-book multiple of 0.99 times compared to JPMorgan, which trades at 1.43 times and Morgan Stanley's 1.53 times, according to Refinitiv's Eikon data.

The bank declined to comment on its share price performance.

LOST FAITH?

David Wagner, a portfolio manager at Aptus Capital Advisors, exited his small position in Goldman Sachs months ago because he was unimpressed with managers' handling of the consumer business.

«The inability to execute