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The music-loving CEO of Goldman Sachs found his DJ hobby raising eyebrows once again on Sunday, as The New York Times questioned whether his private passion can be reconciled with his professional role.
David Solomon, 61, started DJing in 2015 and founded his own record label in 2018, the same year Goldman named him CEO.
He and the bank insist there is no conflict of interest, but on Sunday the newspaper discussed that he won the coveted award for remixing Whitney Houston’s hit “I Wanna Dance With Somebody” with the song released this summer.
Unlike cover versions, remixes can only be done legally with the publisher’s permission.
Solomon got permission from Larry Mestel, whose Primary Wave music company is a client of the bank.
David Solomon, CEO of Goldman Sachs, started DJing in 2015 as a hobby, which he says relaxes him.
Solomon was granted permission to remix Whitney Houston’s 1987 smash hit ‘I Wanna Dance With Somebody’
Mestel then convinced Pat Houston, the late singer’s sister-in-law and executor of his estate, to agree.
Sony Music Entertainment, which owns the original recording of the 1987 smash hit, also approved it.
“There’s kind of a prima facie look of, ‘You scratch my back, I’ll scratch yours,'” said Yaron Nili, an associate professor at the University of Wisconsin School of Law who specializes in corporate and securities law.
Mestel defended the deal.
“Our business is in part getting artists to cover, sample or remix our catalog of legendary songs,” he told The New York Times in an emailed statement.
Larry Mestel, whose music company Primary Wave is a client of the bank, helped Solomon close the deal.
Tony Fratto, a spokesman for the bank, said Solomon’s lawyer dealt with Sony.
Fratto insisted there was no conflict of interest.
“The reporting tries to make the case that there is an overlap or intermingling of David’s musical activities and his role as CEO of Goldman Sachs,” he said.
“It is clear that both David and Goldman Sachs have been scrupulous in keeping the relationship separate.”
Solomon, who has not commented on the Houston deal, previously stressed that all of his DJ earnings go to charity.
Guillermo Page, the deputy director of the music business and entertainment industries program at the University of Miami Frost School of Music, told the newspaper that Solomon’s obtaining the coveted Houston song caused a stir.
“When you’re dealing with someone the likes of Whitney Houston, there’s a good chance they have some restrictions on who can use the sound recording,” Page said.
“Just because you want to do your own remix or want to do your own creation doesn’t automatically mean you’re going to be approved.”
Serona Elton, director of the music industry program at the Frost School of Music, noted that the Solomon remix likely helped it gain its current 600,000 monthly listeners on Spotify.
“That’s a very high number for a relatively unknown artist,” he said.
She said that “a really crazy track,” like the Whitney Houston remix, “can cut through the clutter and grab attention.”
Solomon is seen DJing. He founded his own label in 2018.
The financier made $25 million in 2022, a pay cut from 2021, when he made $35 million
Mestel is seen with Pat Houston, Whitney Houston’s sister-in-law and executor of her estate.
The newspaper further reported that a member of Solomon’s staff was asked to contact the record label he founded, to ensure there would be no interference with his work schedule and DJing.
Brandon Launerts, a former Goldman employee who worked in the bank’s marketing department as a social media manager, spoke to people who work for Payback Records.
Two people said the calls were arranged to discuss strategies for promoting Solomon’s new music releases and appearances, and ensuring that his DJing activities did not interfere with his Goldman commitments.
Fratto called the communications “normal” because they involved coordinating scheduling issues and considering “any potential risks” to Goldman.
He added that the calls are infrequent due to Solomon’s limited DJ commitments.
Solomon’s performance as a DJ has previously caused headaches for the bank.
In the summer of 2020, at the height of the pandemic, Solomon played a concert in the Hamptons headlined by The Chainsmokers that violated numerous social distancing rules.
The organizers were fined $20,000.
Andrew Taggart and Alex Pall of The Chainsmokers perform during the ‘Safe & Sound’ Drive-In Fundraising Concert
The concert included opening acts by Southampton City Supervisor Jay Schneiderman’s band (right) and Goldman Sachs CEO David Solomon as DJ D-Sol (left in February).
Andrew Cuomo, the then Governor of New York, announced that the promoters were fined $20,000
Solomon posted this flyer inciting the music festival on his Instagram page. His name, in a red circle, appears among 140 other acts.
Solomon in July of last year made headlines for playing at the Lollapalooza festival in Chicago, appearing alongside Dua Lipa and Doja Cat.
In a 2021 podcast interview, he said that making music helped him relax, and despite being told by some that it posed a risk to his banking career, he saw no need to stop performing.
“I thought about it and said, ‘I’m enjoying this, I’m not doing anything wrong, I’m not breaking any laws, I’m having fun,'” he said.
‘Why should I stop doing something I really enjoy?’