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Goldman Sachs has encouraged a new generation of executives to run the bank's leading investment and trading businesses as the bank adjusts its top ranks and prepares to capitalize on an expected Wall Street boom under US President Donald Trump.
The New York-based bank has appointed new global heads of its equities, fixed income and banking businesses, alongside a leadership reshuffle at its international arm, it said on Tuesday.
The change highlights Goldman's effort to refresh its leadership bench and position itself for future challenges, as the company moves with changing market dynamics.
Erdit Hoxha, Cyril Goddeeris and Dmitri Potishko will deal with the equity sector. Kunal Shah, Anshul Sehgal and Jason Brauth will lead the fixed income unit. Currently, Kim Posnett, Matt McClure and Anthony Gutman have been selected to oversee the investment banking franchise.
The promotion is the culmination of a year-long effort to find ways to retain and promote top talent now that chief executive David Solomon and president John Waldron have solidified their positions at the top of the firm for the near term.
Last week, the bank announced $80mn plans to save five years for both, and established a private equity-style compensation plan to reward top leaders with a share of the profits from the firm's alternative asset funds.
The program – an effort to protect poaching efforts – includes senior executives, meaning some of those promoted on Tuesday could be eligible for their 2025 bonuses, people familiar with the plans said.
Goldman in recent years has lost partners and senior executives to asset managers, private equity and brokerage firms such as TCW, Citadel Securities, Sixth Street and General Atlantic.
The change means 15 people have been added to the firm-wide steering committee, taking its total membership to 39. Six of the new arrivals live in London or Hong Kong in a sign of the importance of Goldman's international business.
The global banking and central markets division makes up two-thirds of Goldman's net income.
It includes both investment banking and sales and marketing, and was a key driver of the bank's blockbuster fourth-quarter results, which were announced last week.
Goldman's total revenue more than doubled on the year to $4.1 billion, as it reported net income from its equity business last year. Investment banking fees rose 24 percent year over year to $2.1 billion.
In a significant transition, Shah and Gutman will also assume the roles of Goldman Sachs International's chief executives. 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 assume the position of vice-chairman.
“This leadership team represents the best of our culture, customer service and teamwork,” said Solomon. “They have made outstanding contributions throughout their careers to our customers, operations and leadership positions in our business.”
Goldman's other major division, asset and wealth management, announced similar restructuring last year.