Sunday, The New York Times questioned whether the DJing pastime of the music-loving CEO of Goldman Sachs is compatible with his professional responsibilities.
David Solomon, 61, began DJing in 2015 and created his own record label in 2018 – the same year Goldman appointed him CEO.
He and the bank argue there is no conflict of interest, but on Sunday the newspaper studied his winning the coveted reward of remixing Whitney Houston’s summertime classic, “I Wanna Dance With Somebody.”
Remixes, unlike cover versions, are only permissible with publisher consent.
Larry Mestel, whose music label Primary Wave is a client of the bank, gave permission to Solomon.
David Solomon, CEO of Goldman Sachs, began DJing as a hobby in 2015, a pastime he says soothes him.
Solomon was permitted to remix Whitney Houston’s 1987 single “I Want to Dance with Somebody.”
Then, Mestel persuaded Pat Houston, the deceased singer’s sister-in-law and executor of her estate, to agree.
Sony Music Entertainment, the owner of the original recording of the 1987 hit, also gave its approval.
Yaron Nili, an associate professor at the University of Wisconsin Law School who specializes in corporate and securities law, stated, “There is a prima facie appearance of ‘you scratch my back, I’ll scratch yours.’”
Mestel supported the contract.
“Part of our business is convincing artists to cover, sample, or remix our legendary song catalog,” he told The New York Times in an email.
Larry Mestel, whose music company Primary Wave is a bank client, assisted Solomon in closing the acquisition.
Tony Fratto, the bank’s spokesman, stated that Solomon’s attorney handled with Sony.
Fratto argued that a conflict of interest did not exist.
‘The story is attempting to suggest that David’s music activities and his work as CEO of Goldman Sachs intersect or intertwine,’ he said.
It is evident that David and Goldman Sachs have taken great care to keep their relationship distinct.
Solomon, who has not commented on the Houston arrangement, has previously stated that he donates all DJing earnings to charity.
According to Guillermo Page, associate director of the music business and entertainment industries department at the University of Miami Frost School of Music, Solomon’s acquisition of the coveted Whitney Houston tune sent shock waves throughout the industry.
“When you’re dealing with someone of Whitney Houston’s stature, it’s likely that they have restrictions on who can use the audio recording,” explained Page.
If you wish to create your own remix or original work, it does not necessarily mean that you will be accepted.
Director of the music industry program at the Frost School of Music, Serona Elton, remarked that Solomon’s remix undoubtedly contributed to his current 600,000 monthly listeners on Spotify.
She stated, “It’s a very high number for a relatively unknown artist.”
She stated that a “really insanely hot track,” such as the Whitney Houston remix, can cut through the noise and garner attention.
Solomon is seen DJing. In 2018, he started his own label.
The banker made $25 million in 2022, a decrease from the $35 million he received in 2021.
Mestel is seen with Whitney Houston’s sister-in-law and estate executor, Pat Houston.
A member of Solomon’s team was reportedly tasked with communicating with the record label he co-founded to ensure there was no interference with his work schedule and DJing.
Brandon Launerts, a former Goldman Sachs employee who managed social media for the bank’s marketing department, spoke with Payback Records employees.
According to two sources, the purpose of the calls was to discuss strategies for promoting new music releases and appearances by Solomon, and to ensure that his DJing activities did not conflict with his Goldman obligations.
Fratto said the contacts as “normal” because they involved scheduling coordination and consideration of “potential risks” for Goldman.
Given Solomon’s limited DJ obligations, he said that the calls are uncommon.
Solomon’s DJing has previously given the bank issues.
During the height of the pandemic in the summer of 2020, Solomon performed at a concert in the Hamptons headlined by The Chainsmokers that violated various social distancing norms.
The organizers received a $20,000 fine.
The Chainsmokers’ Andrew Taggart and Alex Pall perform at the ‘Safe & Sound’ Drive-In Concert Fundraiser.
The evening featured performances by the band of Southampton Town Supervisor Jay Schneiderman (right) and Goldman Sachs CEO David Solomon as DJ D-Sol as opening acts (left in February)
The then-governor of New York, Andrew Cuomo, said the promoters were fined $20,000
Solomon submitted this music event flier to his Instagram account. His name is circled in red with 140 other acts.
Solomon’s performance at the Lollapalooza festival in Chicago, with Dua Lipa and Doja Cat, made news in July of 2017.
In a podcast interview in 2021, he stated that making music helped him unwind, and despite warnings that it could jeopardize his banking career, he saw no reason to quit performing.
He said, “I thought about it and said, ‘I enjoy this, I’m not doing anything wrong, I’m not breaking any laws, and I’m having fun.’”
Why should I stop doing something I enjoy tremendously?
»Goldman Sachs CEO received permission to remix Whitney Houston song from business client«