We asked more than a dozen Goldman Sachs insiders about the key players under incoming CEO David Solomon - here's who they say is in and out
Dees leads one of Goldman's most lucrative investment-banking businesses, routinely tussling with Morgan Stanley for the top spot. He's spent time in Asia as co-head of the region's investment banking division and the increasingly powerful financing group, and joined the management committee last year at Solomon's behest. In June, a colleague was named to share TMT duties, interpreted as a sign that Dees is in line for a promotion. Insiders say he is most likely to become co-head of the investment banking division should John Waldron get a promotion.
Esposito may have an inside track on getting a bigger role since he once served as the chief operating officer of the investment banking division under Solomon. He also led the financing group, now considered a farm team of sorts for Solomon's chief lieutenants. Of all the top leaders in sales and trading, Esposito may be the one who Solomon is most comfortable with, according to a person who knows both men. Some inside Goldman think he's in line to become a co-head of the securities unit.
Farris was originally hired from General Electric to work with former Trump aide and current Goldman partner Dina Powell, and only later started working with Solomon as his chief of staff. Farris travels with Solomon, offers input on everything from media appearances to speeches, and is seen as having helped soften his image during his horse race with ex-president Harvey Schwartz. She made managing director in 2017.
Lemkau is considered one of the last, and most senior, traditional coverage bankers in investment banking after a spate of exits in the last several years. Lemkau was a key man in Solomon's succession plan, named to co-head investment banking after his boss ascended to the co-president's role. Like Esposito, Lemkau has been the COO of the division under Solomon, and spent time in Europe and Asia, considered training grounds for senior leaders.
Scherr, like many now getting promotions, once ran the financing group. He's currently in charge of what may be Goldman's highest profile growth project: its digital consumer bank, Marcus. Insiders say Scherr is close to Blankfein, and while he and Solomon haven't always seen eye to eye, they've recently patched up their differences, according to people who work closely with both of them. Solomon credits Scherr with elevating the discussion around the firm's strategy, and he's now considered a frontrunner to join John Waldron in sharing the duties as Solomon's No. 2, the people said.
Waldron is considered Solomon's closest colleague, and insiders consider him the leading candidate to be named Solomon's deputy. He once ran investment banking services, a unit created by former Goldman senior partner John Whitehead decades ago to woo new clients and flatter existing ones. He also spent some time in leveraged finance, a Solomon specialty and an area of the firm that's growing fast. Waldron is said to be one of Rupert Murdoch's top bankers.
Cohen replaced Scherr in November as the firm's chief strategy officer, a role that gives her a desk in the executive office on the 41st floor. She has spent her entire career at Goldman and previously ran M&A banking for financial sponsors. Solomon was instrumental in her elevation and remains one of her champions, according to a person with knowledge of their relationship. Some feel that she could run the banking division one day. Last month, Cohen rolled out a project to invest $500 million of firm and client capital in private firms founded, owned or operated by women.
Coleman, who had been running the financing group in EMEA before getting his current role last month, is another capital markets banker who has risen up Goldman's ranks. It was his second promotion in as many years. Several insiders expect him to continue climbing the ranks.
Hammack is considered a rising star at Goldman, and some insiders think she's got the inside track to become CFO in a few years time. Solomon fought for her elevation to the treasurer's role last November, according to a person with knowledge of the appointment. She had been the global head of short-term interest rates trading and she still sits on two influential committees that advise the US government on selling debt.
Holmes will play an important role for Solomon as the incoming CEO sets to reshaping the firm's workforce. Named to the role last September, Holmes must meet Goldman's goal of having a 2021 analyst class evenly divided between men and women. He'll also be asked to find new ways to engage millennial employees and attract engineers as Solomon and his team expand into new businesses such as the digital consumer bank.
Lane made his name at Goldman Sachs by building up the asset management division's alternative investments business, selling private equity and hedge funds to the wealthy. He made partner in his late 20s. While it isn't clear how tight he is with Solomon, Lane has worked closely with Goldman's president since Solomon and Harvey Schwartz divided the firm in late 2016 and Solomon got the division as one of his "majors." Lane is seen as a dark horse candidate to be named co-president or co-COO.
Prior to being named to his current role, Lyon co-headed Americas financing with Scher. He has spent much of his career calling on private equity clients, first as a leveraged-finance banker and later as a relationship banker on the advisory side. Lyon also spent time in the investment banking services group, good experience as Goldman tries to take elements of that model and expand it across divisions.
Miner was named to her current role last September when Holmes started running human capital management. Along with the CFO, Miner will be Solomon's point person with investors as the firm tweaks its strategy and goes after $5 billion in added revenue by 2020. Miner spent years in investor relations before her prior job running strategic advisory solutions for the asset management arm.
Nachmann moved to London last year after being named one of three division co-heads. Prior to his current role, he ran Goldman's financing group. He's also run natural resources investment banking. Some colleagues consider him in Solomon's inner circle. Nachmann is seen as a skilled risk manager and currently chairs the division's risk committee, a role that has prepared him to help run the securities division if Solomon asks him to, which some insiders expect. Some also see Nachmann as a long-shot for CFO.
Salisbury runs an important yet secretive business for Goldman in the special situations group, which invests on behalf of the firm's securities division in debt and equity stakes. He's in close contact with Solomon, who values his advice beyond SSG on broader issues of investing and securities markets, according to a person with knowledge of the relationship. As Goldman considers whether to keep the Investing & Lending reporting segment intact, or reconfigure it to improve transparency, Salisbury may find a larger role.
Scher, one of the firm's most senior women, has been instrumental in helping expand Goldman's bridge loan business. And years ago, she and Solomon were in a small group that devised a strategy for competing against Goldman's larger commercial banking rivals in debt underwriting. The debt capital markets business has since become a huge success story, helping propel Solomon's rise and netting the firm a record $2.9 billion in revenue last year. Scher's got a good shot to gain a seat on the management committee and possibly be named to run the investment banking division in the next few years, according to colleagues.
Siewert joined Goldman in 2012, charged with rehabilitating the image of both the bank and its CEO after they attracted public scorn following the financial crisis. Considered by some to be loyal to Blankfein, Siewert has in the past few months been counseling Solomon with his media strategy. While that's to be expected, Solomon is satisfied with the counsel he's getting, according to people with knowledge of the relationship.
Smith has been discussed within the walls of Goldman's 200 West St. headquarters as a potential candidate for the CFO's job, should Solomon decide he needs a change. Respected by many, including the bank's regulators, Smith has held a successive string of roles in what's known at Goldman as the Federation, the suite of control functions that sit outside the revenue-generating divisions. Prior to her current role, she was controller and chief accounting officer.
York is head of the firm's private wealth business, one half of the investment management division. While he's been at Goldman for a long time and seems content in his current job, the business is gaining visibility and importance to the firm's results. Goldman's growth plan calls for PWM to contribute more than $500 million over the next three years. If Eric Lane gets a promotion, York is considered a candidate to help run the division.
Lloyd Blankfein tapped Chavez to be finance chief in early 2017, replacing Schwartz when he became co-president with Solomon. Prior to his current role, Chavez was the bank's chief information officer overseeing most of the engineers who make up more than a quarter of Goldman's employee base. While some analysts have quibbled with Chavez's performance as CFO, Solomon has repeatedly defended his finance chief, telling colleagues he's satisfied with how he's done. The president also values Chavez's close relationships in the securities division, where he once worked, the person said.
Daffey was named one of three co-COOs of the equities unit in 2012, and he was one of six executives tasked with running the securities division earlier this year. However, insiders think Solomon will whittle down the number over the coming months. Daffey is known for being one of the firm's best salesmen, and he counts many of the world's top hedge fund managers as clients. Solomon respects Daffey for his ability to serve clients, according to a person with knowledge of his thinking.
Gmelich was elevated to his role helping to run the firm's FICC (fixed-income, currencies and commodities) franchise last November, after heading the credit and mortgage trading business for years. The businesses have been some of Goldman's best performing in past years, though they've struggled to adapt in some places to the firm's renewed client focus. Some think Gmelich's got a shot to be one of those chosen to run the securities division.
Russo, with Daffey, oversees an equities division undergoing a technological overhaul. Executives are trying to boost execution speeds after a series of strategy choices handcuffed the unit's competitiveness and dropped it from top of the league tables. Insiders think he has a greater chance of being selected to run the division because he's a trader and possesses risk management skills that Solomon may appreciate.
Varadhan was the last man standing when his two securities division co-heads, Pablo Salame and Isabelle Ealet, stepped down earlier this year. While his survival was initially seen as a sign of support, it's not always clear how well he and Solomon get along. The presumptive CEO, who came up through the investment bank, doesn't have deep connections in the securities division and with the recent departure of execs with a background in trading risk — Gary Cohn, Pablo Salame and Harvey Schwartz to name just three — colleagues say he will need good risk managers. Whether he sticks with Varadhan over the longer term remains to be seen.
Friedman has been a Blankfein loyalist for decades. But that doesn't mean Solomon doesn't respect his input, especially because of his history at the firm, according to a person who knows both men. Friedman's power is bolstered by the fact that he's made millions for partners investing in funds managed by his division. Friedman also reportedly has a lot of his wealth tied up in the funds. As long as the division continues to perform, he'll likely have a role in Solomon's management team, the person said.
O'Neill has known Blankfein since before the two men joined J. Aron in the 1980s, and he's stayed by the CEO's side ever since. O'Neill is considered by insiders to be one of the strongest strategic thinkers at Goldman. While he likely could retire whenever he likes, and many expect his announcement soon after Blankfein's, Solomon counts on his counsel, according to a person familiar with the relationship.
Rogers has survived two CEO changes and there's little reason to suggest that he won't survive a third if he chooses to stick around. Originally brought on to help Jon Corzine before he ran the firm, Rogers lasted through Corzine's tenure and that of Hank Paulson, and then survived the transition to Blankfein. He runs corporate communications and government relations, such as regulatory lobbying efforts, and he's known for his deep connections in Washington.
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