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Goldman Sachs has promoted a new generation of executives to lead its core investment banking and trading businesses, as the bank renews its senior ranks and prepares to capitalize on the expected Wall Street boom under President Donald Trump’s presidency. Donald Trump.
The New York-based bank has appointed new global heads for its equities, bonds and banking businesses, alongside a management shake-up at its international arm, it announced on Tuesday.
These changes highlight Goldman’s efforts to refresh its leadership and position itself for future challenges, as the firm faces changing market dynamics.
Erdit Hoxha, Cyril Goddeeris and Dmitri Potishko will take charge of the equities division. Kunal Shah, Anshul Sehgal and Jason Brauth will lead the fixed income unit. Meanwhile, Kim Posnett, Matt McClure and Anthony Gutman were chosen to oversee the investment banking franchise.
The promotions are the culmination of a year-long effort to find ways to retain and encourage top talent, now that CEO David Solomon and President John Waldron have solidified their positions at the helm. of the company in the near future.
Last week, the bank announced retention plans of $80 million over five years for each of them and set up a private equity-style compensation plan to reward top executives with a share of the funds’ profits. alternative assets of the company.
The program will include some of those promoted Tuesday in an effort to combat poaching efforts, people familiar with the project said.
In recent years, Goldman has lost partners and senior executives to asset managers, private equity firms and trading firms such as TCW, Citadel Securities, Sixth Street and General Atlantic.
The changes mean 15 new people have been added to the firm’s management committee, bringing the total number of members to 39. Six of the new additions are based in London or Hong Kong, a sign of the importance of Goldman’s business abroad.
The Global Banking and Markets division, at the heart of the changes, accounts for two-thirds of Goldman’s net revenue.
It encompasses both investment banking and sales and trading, and was a significant driver of the bank’s blockbuster fourth-quarter results, announced last week.
Goldman’s overall profits doubled year over year to $4.1 billion as the firm reported record net income in its equities business for last year. Investment banking fees rose 24 percent year-over-year to $2.1 billion.
In a significant transition, Shah and Gutman will also assume the roles of co-chief executive officers of Goldman Sachs International. They succeed Richard Gnodde, a veteran of the bank who is leaving after leading the international business for more than a decade. Gnodde will serve as vice president.
“This group of leaders represents the best of our culture of excellence, customer service and teamwork. They have made exceptional contributions throughout their careers to our customer base, operations and market leadership positions across our business,” said David Solomon.
Goldman’s other major division, asset and wealth management, announced a similar shakeup last year.
