Goldman Sachs CEO Says Wage Inflation Is Spreading Through Economy

October 15, 2021 | Daniel Taub and Sonali Basak

Goldman Sachs Group Inc. Chief Executive Officer David Solomon said that inflation, particularly in wages, remains top of mind among corporate leaders and shareholders.

“Inflation is a topic that is front and center with every investor that I talk to — and certainly with every CEO that’s running a business of any size or any scope,” Solomon said Friday in an interview with Bloomberg Television. “There is definitely inflation — we haven’t seen it in a while, and the question is what choices do we make from here.”

Solomon’s comments follow similar concerns voiced this week by Bank of America Corp. CEO Brian Moynihan, Morgan Stanley CEO James Gorman and Goldman President John Waldron. Recent inflation, driven in part by worker shortages and rising wages, “is clearly not temporary,” Moynihan said Thursday.

“There’s real wage inflation across all aspects of the economy right now,” Solomon said Friday.

Solomon also said he remains committed to bringing his workers back to Goldman offices, with collaboration particularly important for younger employees. Flexibility, however, has long been a part of the bank’s culture and will remain so, he said.

“I’ve been encouraged by the fact that more and more people across the offices around the world have been returning to office,” Solomon said. “We have always been extremely flexible with our high-performing employees, and given them lots of flexibility to manage their life and to travel and work remotely, which is a core part of our business.”

Source: Bloomberg News