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Goldman Sachs is going through a massive transformation under CEO David Solomon

Business Insider logo Business Insider 5/17/2021 insider@insider.com (Business Insider)
a man wearing a suit and tie: Goldman Sachs CEO David Solomon. Getty Images © Getty Images Goldman Sachs CEO David Solomon. Getty Images
  • Goldman Sachs CEO David Solomon is taking big steps to transform the bank.
  • Goldman has been pushing into consumer banking and wealth management.
  • But a slew of partners have jumped ship, and Marcus has seen a big talent exodus.
  • Visit the Business section of Insider for more stories.

Goldman Sachs is going through some big changes under CEO David Solomon.

The Wall Street bank has taken steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is executing on targets including multi-year cost-cutting plans. And it's making big pushes into wealth management and consumer banking.

Goldman smashed expectations and set a revenue record in the first quarter, and its stock price has soared. Investors and Wall Street analysts are singing Solomon's praises.

But the firm's top ranks have seen almost unprecedented turnover, with six members of the management committee departing over the past year.

And junior bankers have been so overworked that they put together two presentations to express their unhappiness to management. Engineers in a consumer division that Goldman spent billions to build have quit in droves.

Here's a rundown of the must-know news at Goldman, including the latest hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management push.

Who are the top leaders at Goldman?

a man and woman posing for a photo: Cindy Ord/Getty; Paul Morigi/Getty; Sean Zanni/Patrick McMullan via Getty; Jemal Countess/Getty; Shayanne Gal/Business Insider © Cindy Ord/Getty; Paul Morigi/Getty; Sean Zanni/Patrick McMullan via Getty; Jemal Countess/Getty; Sha... Cindy Ord/Getty; Paul Morigi/Getty; Sean Zanni/Patrick McMullan via Getty; Jemal Countess/Getty; Shayanne Gal/Business Insider

Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

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The lastest news on Goldman's Marcus

a close up of a hand holding a cell phone screen with text: Marcus offers savings and credit products online and through its app. Reuters © Reuters Marcus offers savings and credit products online and through its app. Reuters

Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.


Video: Goldman Sachs CEO David Solomon testifies before Congress (CNBC)

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But it's seen a wave of recent departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank's digital and product leadership team for consumer and community banking. Goldman has also brought in new hires, including Peeyush Nahar, an executive at Uber, to head the bank's consumer business.

Insiders explained how Goldman Sachs' hard-charging culture had contributed to exhaustion and high turnover within Marcus, and a Goldman spokesperson told us that the firm is eyeing beefing up the ranks by hiring some 200 to 300 new engineers.

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Goldman's wealth-management push

a man and a woman smiling for the camera: Meena Flynn and John Mallory co-head the private wealth business at Goldman Sachs. Goldman Sachs © Goldman Sachs Meena Flynn and John Mallory co-head the private wealth business at Goldman Sachs. Goldman Sachs

Goldman, a firm synonymous with enormous wealth, has in recent years tried to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has long done business with large companies and the very wealthy.

It launched Marcus Invest, a robo-advisor with a $1,000 minimum, earlier this year. And it has reorganized how its wealth businesses are situated entirely, creating a new internal consumer and wealth management division that went into effect at the start of this year. Goldman has some 800 advisors within private wealth globally.

Goldman's dealmakers

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank's powerhouse technology, media, and telecommunications group.

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm's investment banking division since 2017 and a member of Goldman's management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs' head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

Goldman has also been riding the SPAC boom, which went into overdrive in the first quarter. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.

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