The results prompted investors and analysts to ask what comes next. Marcus's woes also weighed on fourth-quarter earnings, which fell dramatically short of analyst expectations. The consumer business that he championed lost $3 billion in almost three years and its operations are being probed by regulators. Solomon's performance will also be scrutinized. The company needs to provide a "credible plan" to reach the medium-term target of 15% to 17%, Cronin said. That compares with 24.3% in 2021, a blockbuster year, reflecting how volatile Goldman's earnings can be. Last year, its ROTE dropped to 11%, lagging peers and falling short of analysts expectations. Investors will also judge whether the company can hit its target for return on tangible equity (ROTE), a measure of performance that compares profit versus shareholder equity. While Cronin said that the bank's leadership could get the job done, "there's definitely some debate about the path forward here, just given some of the missteps" and the gap between Goldman's promises and what it has delivered. "It's a pretty important investor day," said Mike Cronin, investor director at fund manager abrdn, which owns a stake in the bank. Goldman Sachs Group Inc's Chief Executive David Solomon faces a reality check from investors on Tuesday as he presents plans to reach key financial goals.Īt only the second investor day in Goldman's 154-year history, shareholders will gather in downtown Manhattan to assess the Wall Street giant's roadmap after the high-profile flop of its consumer business, Marcus.
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