Goldman Shuffles Consumer Banking, Asset Management Executives -- Update
September 29 2020 - 12:15PM
Dow Jones News
By Liz Hoffman
A woman will run a major division at Goldman Sachs Group Inc.
for the first time in years as Chief Executive David Solomon
continues to put his mark on the bank.
Stephanie Cohen, who has been Goldman's chief strategy officer
since 2017, was promoted Tuesday to run the bank's consumer banking
and wealth-management division as part of a broader reshuffling two
years into Mr. Solomon's tenure. Her co-head will be Tucker York, a
longtime executive in Goldman's private bank, which caters to
billionaires.
The firm is also combining Goldman Sachs Asset Management, which
invests about $2 trillion on behalf of clients such as pension
funds and governments, with its private-equity business, which has
historically invested Goldman's own money. It will be run by Eric
Lane, a co-head of the former, and Julian Salisbury, a co-head of
the latter.
Goldman Kremlinologists will find plenty to dissect in the
moves. Ms. Cohen, a favorite of Mr. Solomon, gets a division to run
-- a must-have for executives with their eye on the C-suite. A
longtime consigliere to a string of Goldman CEOs, Tim O'Neill, will
give up his job co-running asset management with Mr. Lane to become
a senior counselor.
In two years on the job, Mr. Solomon has collapsed a loose
collection of fiefs into four relatively straightforward businesses
that mirror peers like JPMorgan Chase & Co.: an investment bank
that brokers corporate deals, a trading arm that buys and sells
securities, a money manager that invests on behalf of pension funds
and other clients; and a consumer arm that offers bank accounts,
credit cards and investment products.
Goldman seeks to add $350 billion in client assets over the next
few years, including $100 billion in so-called alternative funds,
which invest in things such as real estate, private equity and
private credit. Asset management throws off steady fees, entails
little risk and sucks up little capital, which means it has higher
returns to shareholders.
Goldman's stock is stuck at 2016 levels. Returns in core
businesses like trading have declined and investors remain
skeptical that it will succeed in new ventures such as consumer
banking and wealth management for the masses.
Russ Hutchinson, an investment banker who caters to financial
institutions and one of Goldman's few Black partners, will take Ms.
Cohen's job as chief strategy officer.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
September 29, 2020 12:00 ET (16:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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