- Goldman Sachs CEO David Solomon is taking big steps to transform the bank.
- Goldman has been pushing into consumer banking and wealth management.
- Here’s the latest news on Goldman Sachs.
- Visit the Business section of Insider for more stories.
Goldman Sachs has been going through some massive changes under CEO David Solomon.
It’s taken big steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is looking to execute on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.
Solomon, who took the reins as CEO in 2018, has also looked to reduce the number of partners overall at the firm in order to make the status more elite and exclusive. In 2018, there were 484 partners. But as of the latest announcement of the newest partner additions, Goldman’s total partners amounted to fewer than 440.
Goldman Sachs is set to report first-quarter earnings on Wednesday, April 14.
Who are the top leaders at Goldman?
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.
Read more:
- Here’s our exclusive Goldman Sachs org chart mapping out the hierarchy of 125 top execs
- An exodus is under way at Goldman Sachs. Here’s a running list of all the partners jumping ship and where they’re heading.
- Inside the rise of Stephanie Cohen, the Goldman Sachs dealmaker leading a make-or-break push to take on Main Street
- Goldman Sachs shook up its divisions to create a new consumer and wealth-management arm that will be run by Stephanie Cohen and Tucker York
The lastest news on Goldman’s Marcus
Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.
But it’s seen a wave of recent departures including the exits of top Marcus bosses Omer Ismail and David Stark.
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.
Read more:
- Burnout, blown deadlines, and a tech-talent exodus: How Goldman Sachs’ Marcus is struggling to live up to its lofty consumer-banking ambitions
- Goldman Sachs is hiring up to 300 engineers in its consumer business after product sprints triggered burnout and a tech exodus
- Goldman Sachs responded to burnout fears in its consumer division by making evenings and Fridays ‘audio only,’ encouraging staff to go for walks and talk on the phone instead
- Goldman Sachs execs lay out plans for its new robo-advisor as it takes on fintechs like Wealthfront and Betterment in a fiercely competitive space
Junior bankers are feeling the heat
A grueling year of increased demands while working from home has some Goldman Sachs junior talent reaching a breaking point.
In March, a presentation created by 13 analysts within the firm’s investment bank grabbed headlines. Meanwhile, the bank is prepping it’s latest cohort of young bankers for a return to in-person work.
Read more:
- Goldman Sachs interns are scrambling to find housing in New York City this summer as the bank prepares them to head into the office
- Goldman Sachs just vowed to improve conditions for junior bankers. But a newly leaked pitch deck shows analysts were pleading for changes since WFH started.
- Some Goldman analysts are fed up with 98-hour workweeks from their bedroom as a year of WFH forces Wall Street to reevaluate junior bankers’ workload
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.
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- Read the full memos Goldman Sachs just sent naming Susie Scher as chairman of its global financing group, plus other changes in investment banking leadership
- Meet Kim Posnett, the youngest head of a powerful team inside Goldman Sachs’ investment bank that’s focused on pitching new, innovative ways to get deals done
- Read the full memo naming the new co-heads of Goldman Sachs’ powerhouse tech team as top dealmaker Nick Giovanni exits
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