Goldman Sachs (NYSE:GS) is reassigning roles among its seasoned insiders amidst the backdrop of multiple challenges the institution is currently facing.
Ericka Leslie, a prominent figure on Goldman’s top management committee, will transition from her position as chief administrative officer to take up the mantle of chief operating officer in the bank’s global banking and markets division. This division is paramount within Goldman Sachs, overseeing both investment banking and trading operations.
The predecessor in that COO role, Will Bousquette, is set to assume the role of chief operating officer for the bank’s asset and wealth management wing. He will be stepping into the shoes of Laurence Stein, a stalwart at Goldman for 27 years, who is slated for retirement by year-end.
This reshuffle is particularly noteworthy in the light of some notable executive exits from Goldman this year. These exits include Julian Salisbury, the former chief investment officer of asset and wealth management, and Dina Powell McCormick, who oversaw the bank’s sovereign business.
McCormick has since joined BDT & MSD Partners, co-helmed by another Goldman alumni, Gregg Lemkau. Lemkau had previously overseen investment banking at Goldman.
Both Leslie and Bousquette have deep roots at Goldman. Having been part of the institution since 1996, Leslie will now be answerable to the triumvirate leading global banking and markets: Ashok Varadhan, Dan Dees, and Jim Esposito. On the other hand, Bousquette, a Goldman member since 1998, has an equally illustrious track record.
There is speculation regarding the possible return of the chief administrative officer role previously held by Leslie, though Goldman hasn’t revealed any immediate plans to refill the position, as per insiders.
These changes emerge during a time of intensified observation of CEO David Solomon, who is feeling the heat to enhance Goldman’s performance after a three-year low in quarterly profits.
The challenges he confronts range from imminent layoffs and an extended downturn in investment banking to whispers of discontent among partners and debates over his leadership acumen.
The bank has already confirmed a cull of approximately 3,200 positions this year and aims to reduce expenditures by $1 billion within the coming two years, including significant cuts to compensation.
While Goldman’s stock witnessed a minor uptick on Monday, it has depreciated by 5% since January’s onset. Solomon’s strategy seems to be a delicate pullback from an ambitious foray into consumer lending.
However, with Goldman serving as a lead banker for anticipated IPOs from giants like chipmaker ARM and online grocery platform Instacart, there is a glimmer of optimism. Solomon, in his recent conversation with Yahoo Finance, expressed that successful IPOs could set off a positive domino effect, potentially drawing in more businesses.
Highlighting the institution’s primary areas of focus, Solomon stressed on investment banking, markets, and wealth management, indicating these sectors as Goldman’s priorities at the moment.
Featured Image – Freepik
Author Kristen Moran 
