Why Gary Cohn May Not Be Goldman's Next CEO

Gary Cohn’s ties to the Goldman CEO and the culture of trading could count against him

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Max Abelson and Christine Harper

July 28, 2011 at 8:56 PM UTC

This article is for subscribers only.

BusinessWeek Cover Image (11_32, 748x1024)

This article is part of the August 1, 2011 issue of businessweek.

As president and chief operating officer of Goldman Sachs, Gary D. Cohn should be the obvious candidate to succeed Chief Executive Officer Lloyd C. Blankfein. That isn’t a sure bet, say a dozen current and former colleagues who did not want to be identified. While Cohn has helped the firm earn billions in profits, his handicap, they say, may be the qualities that got him to the No. 2 spot: an abrasive style, an appetite for risk, and a long association with Blankfein.

Blankfein, 56, has led Goldman Sachs for five years and has said he has no plans to step down. The bank’s shares have fallen 6 percent since he became CEO, while the Standard & Poor’s financial stock index has dropped 52 percent. Through July 26 this year, the shares are down 18 percent, while the financial stock index has lost 5 percent. In the second quarter, profit fell short of analysts’ estimates. The company declined to comment for this story.