A woman will run a major division in the Goldman Sachs Group Inc.
Making his mark on the bank for the first time in years as Chief Executive David Solomon.
Stephanie Cohen, who has been Goldman’s chief strategy officer since 2017, was promoted Tuesday as a major overhaul of the bank’s consumer banking and wealth-management division over two years of Mr. Solomon’s tenure. Its co-head will be Tucker York, a longtime executive at Goldman’s private bank, which caters to billionaires.
Goldman Kremlinologists will find much to dissect in moves. Mr. Solomon’s favorite, Ms. Cohen, must find a division to run for the officers with her eyes on the C-suite. Goldman’s CEO, Tim O’Neill, for a long time agreed upon to become a senior consultant, would leave his job with Mr. Lane, co-managing asset management.
In two years on the job, Mr. Solomon has demolished a loose collection of jagirs in four relatively straight professions, mirror co-workers like JP Morgan Chase JPM -1.19%
& Co: an investment bank that gives brokers corporate deals, a trading arm that buys and sells securities, a wealth manager who invests on behalf of pension funds and other clients; And a consumer branch that provides bank accounts, credit cards and investment products.
Goldman attempts to add $ 350 billion in client assets over the next few years, including $ 100 billion in so-called alternative funds that invest in things like real estate, private equity, and private credit. Asset management throws up steady fees, slightly increases risk and sucks small capital, meaning shareholders have higher returns.
Goldman’s stock is stuck at 2016 levels. Key businesses such as trading have seen declining returns and investors suspect that it will be successful in new ventures such as consumer banking and wealth management for the public.
Ras Hutchinson, an investment banker who caters to financial institutions and is one of Goldman’s few black partners, will serve as Ms. Cohen’s chief strategy officer.
Write Liz Hoffman at [email protected]
Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8