Goldman Sachs scraps plan to buy a third corporate aircraft amid scrutiny of CEO's plane use and cost-cutting
A Gulfstream G650 next to Goldman Sachs CEO David Solomon.This story is available exclusively to Insider subscribers.Goldman Sachs had an option to buy a third Gulfstream when it bought two in 2019.At least one shareholder has asked Goldman investor relations for further information about the CEO's jet use.
Goldman also received an option to purchase a third jet, according to people briefed on the arrangement., but was told it wouldn't be ready in time for a 2020 delivery. Goldman's Wall Street rivals like JPMorgan and Morgan Stanley have long owned private jets, seeing them as secure and flexible ways to ferry their top executives to meetings with clients, investors, and government officials across the globe. For decades, however, Goldman avoided direct ownership, electing to use NetJets, until Solomon made the switch.
Solomon has also used the jets for personal trips, including flights to his home in the Bahamas enclave of the Baker's Bay Golf and Ocean Club, according to flight logs and people familiar with the CEO's schedule. Solomon's use of the planes, which were delivered in the summer of 2020, coincided with a failed and expensive foray into consumer banking. The consumer business lost nearly $2 billion last year, denting bonuses for staff and attracting the ire of investors who have called for Goldman to stick to its core strengths of trading, investment banking, and wealth and asset management.
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