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Goldman Sachs has promoted a new generation of executives to head its key investment banking and trading businesses as the bank overhauls its top ranks and prepares to capitalise on an expected Wall Street boom under US President Donald Trump.
The New York-based bank appointed new global heads for its equities, fixed income and banking businesses, alongside a reshuffle of the leadership at its international arm, it said on Tuesday.
The changes highlight Goldman’s effort to refresh its leadership bench and position itself for future challenges, as the firm navigates shifting 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 have been tapped to oversee the investment banking franchise.
The promotions are the culmination of a year-long effort to find ways to retain and incentivise senior talent now that chief executive David Solomon and president John Waldron have cemented their positions at the top of the firm for the near future.
Last week, the bank announced $80mn five-year retention plans for both of them, and set up a private equity-style compensation plan to reward top leaders with a share of the profits from the firm’s alternative asset funds.
The programme will include some of those promoted on Tuesday in an effort to fend off poaching efforts, people familiar with the plans said.
Goldman has been losing partners and top executives to asset managers, private capital and trading firms such as TCW, Citadel Securities, Sixth Street and General Atlantic in recent years.
The changes mean that 15 new people have been added to the firm-wide management committee, taking its total membership to 39. Six of the newcomers are based in London or Hong Kong in a sign of the importance of Goldman’s overseas businesses.
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 results in the fourth quarter, which were announced last week.
Goldman’s overall profits doubled year on year to $4.1bn, as it reported record net revenues in its equities business for last year. Investment banking fees increased 24 per cent year on year to $2.1bn.
In a significant transition, Shah and Gutman will also assume the roles of co-chief executives of Goldman Sachs International. They succeed Richard Gnodde, a veteran of the bank who is stepping down after leading the international business for more than a decade. Gnodde will take up the position of vice-chair.
“This group of leaders represents the very best of our culture of excellence, client service and teamwork. They have made outstanding contributions throughout their careers to our client franchise, operations and market-leading positions across our business,” said David Solomon.
Goldman’s other big division, asset and wealth management, announced a similar reshuffle last year.
