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Goldman mixes consumer banking, asset management executives

A woman will run an important division in

Goldman Sachs Group Inc.

GS -1.04%

for the first time in years that CEO David Solomon continues to make his mark on the company.

Stephanie Cohen, who has been Goldman’s chief strategy officer since 2017, was promoted Tuesday to co-head the bank’s consumer banking and wealth management division as part of a broader two-year reshuffle since Solomon’s tenure. Its co-manager will be Tucker York, a longtime executive at Goldman̵

7;s private bank, which caters to billionaires.

The firm is also combining its money management arm, which invests cash for clients like pension funds and governments, with its private equity business, which has historically invested Goldman’s money in real estate and acquisitions. It will be managed by Eric Lane, a co-head of the former, and Julian Salisbury, a co-leader of the latter.

Goldman Kremlinologists will find a lot to analyze during the moves. Ms. Cohen, a favorite of Mr. Solomon, gets a division to run, a must for executives with their eyes on the C-suite. Mr. Salisbury closes a rapid ascent from running a niche proprietary investment arm to running the bank’s second largest business by revenue. Both are part of a group of younger executives who may one day be in line for the CEO job.

Meanwhile, Tim O’Neill, an advisor to a number of Goldman CEOs dating back decades, will be giving up his wealth management co-management job with Mr. Lane to become a senior consultant.

Goldman has for years been run as a vast collection of fiefdoms, with parallel centers of power charging stockholders with expenses and disclosures that confused more than they explained.

In two years of work, Mr. Solomon has reduced those provinces into four relatively simple businesses that mirror peers like

JPMorgan Chase

JPM -0.61%

& Co.: An investment bank that mediates corporate affairs; a trading arm that buys and sells securities; a fund manager who 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 assets are easier to manage and better understood by investors, helping to squeeze a share price that hasn’t changed in four years. A cleaner organization could portend a cost-cutting which is a strength of Mr. Solomon.

Wealth management is a priority for the company because it eliminates fixed fees, carries little risk and absorbs little capital, which means it has higher returns for shareholders. Goldman managed to be big in space – with $ 2 trillion under supervision, it is among the 20 largest fund managers in the world – but not particularly profitable.

Goldman seeks to add $ 350 billion of 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 on Tuesday, Harit Talwar, the

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the executive recruited five years ago to start Goldman’s consumer bank, Marcus, will be replaced by Omer Ismail, a 40-year-old deputy. The company is banking much of its growth on Marcus, who has raised billions of dollars in consumer deposits and pursued partnerships with

Apple Inc.,

Amazon.com Inc.


General Motors Co.

to attract new customers.

Russ Hutchinson, an investment banker who caters to financial institutions and one of Goldman’s few black partners, will take on Ms. Cohen’s job as chief strategy officer, exploring potential acquisitions and partnerships for the company.

Write to Liz Hoffman at liz.hoffman@wsj.com

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