Goldman Shuffles Consumer Banking, Asset Management Executives -- 2nd Update
September 29 2020 - 2:35PM
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 firm.
Stephanie Cohen, who has been Goldman's chief strategy officer
since 2017, was promoted Tuesday to co-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 its money-managing arm, which invests
cash for clients like pension funds and governments, with its
private-equity business, which has historically invested Goldman's
own money in real estate and buyouts. 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. Mr.
Salisbury caps a quick rise from running a niche proprietary
investing arm to managing the bank's second-largest business by
revenue. Both are among a group of younger executives who might one
day be in line for the CEO job.
Meanwhile, Tim O'Neill, consigliere to a string of Goldman CEOs
dating back decades, will give up his job co-running
asset-management with Mr. Lane to become a senior counselor.
Goldman was for years run as a loose collection of fiefdoms,
with parallel power centers that ran up expenses and financial
disclosures to shareholders that confused more than they
explained.
In two years on the job, Mr. Solomon has collapsed those
provinces 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.
The hope is that simpler businesses will be easier to run and
better-understood by investors, helping to juice a stock price that
hasn't budged in four years. A cleaner organization might presage a
round of cost-cutting that is a strong suit of Mr. Solomon.
Asset management is a priority for the firm because it throws
off steady fees, entails little risk and sucks up little capital,
which means it has higher returns to shareholders. Goldman has
managed to be large in the space -- with $2 trillion under
supervision, it is among the world's 20 biggest fund managers --
but not especially profitable.
Goldman seeks to add $350 billion in client assets over the next
few years, including $100 billion in alternative funds, which
invest in things like real estate, private equity and private
credit.
Among other moves announced Tuesday, Harit Talwar, the Discover
Financial Services executive recruited five years ago to start
Goldman's consumer bank, Marcus, will be replaced by Omer Ismail, a
40-year-old deputy. The firm is pinning much of its growth on
Marcus, which has gathered billions of dollars of consumer deposits
and has pursued partnerships with Apple Inc., Amazon.com Inc. and
General Motors Co. to bring in new customers.
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, scouting for potential
acquisitions and partnerships for the firm.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
September 29, 2020 14:20 ET (18:20 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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