GOLDMAN Sachs Group is preparing to promote a slate of star executives to run its biggest Wall Street business lines, spotlighting the firm’s next generation of leadership.
The bank, which just reported a surge in profit, is planning to tap new global leaders for its equities, fixed-income and banking units, according to people with knowledge of the matter, who asked not to be named discussing personnel decisions. It also plans to name new co-heads of its international unit.
Erdit Hoxha, Cyril Goddeeris and Dmitri Potishko will oversee equities; Kunal Shah, Anshul Sehgal and Jason Brauth are set to run fixed income; and Kim Posnett, Matt McClure and Anthony Gutman will lead banking.
Shah and Gutman are becoming co-chief executive officers of Goldman Sachs International in addition to their new roles. Richard Gnodde, 64, will step down from running the international business, and is becoming vice-chairman of Goldman Sachs.
The promotions cap more than a year of deliberation inside Goldman over how to designate the firm’s next generation of leaders, giving them more influence in shaping the development of its operations. The roles being filled are not part of the bank’s current structure, with managers reporting to executives who oversee the broader banking and markets segment.
Altogether, the changes would amount to the most significant elevation of Goldman’s future leadership outside of chief executive officer David Solomon’s core team in recent years.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
A spokesperson for the New York-based firm declined to comment.
Sam Morgan and Kevin Kelly will run client coverage for the firm’s trading business.
Francois-Xavier de Mallmann, chairman of investment banking, will become chairman of Goldman Sachs EMEA. He will join the management committee in addition to the new division heads, as well as Will Bousquette, chief operating officer of the asset and wealth business, Kathleen Connolly, the bank’s global director of internal audit, and Marie Louise Kirk, chief administrative officer for Asia-Pacific.
In total, 15 people are joining Goldman’s management committee, lifting its membership by more than 50 per cent.
Such promotions reflect a broader attempt at the bank to hold on to talent as chief executive officer David Solomon retains his grip on the top job. On Friday, the bank handed both Solomon and John Waldron, the president and chief operating officer, an US$80 million retention bonus to keep them until at least 2030.
That’s positioned Waldron as the likely next CEO, but also raised further concerns over paths forward for talented executives at the bank, who, like Waldron, are increasingly facing temptations to join high-paying firms across Wall Street, particularly alternative asset managers.
The bank’s One Goldman Sachs initiative, which aims to smooth collaboration, is also getting new leadership as Morgan gets a new job. John Storey and Tony Pasquariello are becoming co-heads, alongside existing co-head Meena Flynn.
In a smaller re-organisation earlier this month, the bank shuffled managers and combined units to form a capital solutions group, a nod to the growing importance of private markets. BLOOMBERG
