Goldman Sachs is transformed under CEO David Solomon

Goldman Sachs is transformed under CEO David Solomon.

The Wall Street bank has taken steps that include transparency and inclusion to change its culture. After its first day of investing in early 2020, the company is pursuing goals, including multiannual cost-cutting programs. And it puts a lot of pressure on wealth management and consumer banking.

On Tuesday, the company’s second-quarter 2021 earnings results exceeded expectations, with the bank reporting its second highest net income. Its investment bank earned more than $ 3.6 billion in revenue.

However, the bank’s top executives have also seen turnover this year, throwing executives into the management committee and the partnership.

At a lower level, some young bankers are frustrated that they are not yet receiving basic salary increases, even when some of their bank competitors have increased their fees.

Here are some things to know about Goldman, including the latest hiring and spending, as well as deep dives at Marcus Consumer Bank and the boost to wealth management.


Who are Goldman’s top leaders?

Goldman Sachs 2x1 organization chart


Cindy Ord / Getty; Paul Morigi / Getty; Sean Zanni / Patrick McMullan via Getty; Jemal Countess / Getty; Shayanne Gal / Business Insider


Goldman revoked its creation in September, creating a new autonomous consumer division that includes the Marcus lending unit as well as wealth management companies and private banks.

Strategy chief Stephanie Cohen and Tucker York, head of the private wealth business, agreed to name the new Consumer and Wealth Management Division, and the changes took effect on January 1st.

The new arrangement matches the way Goldman reports financial results, a change the company made in 2019 to better align with the way Solomon wanted investors to think about the company. Goldman now has four divisions: Consumer and Wealth Management, Asset Management, Investment Banking and Global Markets.

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The new bankers in the spotlight

sad Wall Street merchant

Younger bankers have dismissed their frustrations with Goldman Sachs executives in recent months.

Spencer Platt / Getty Images


Goldman Sachs juniors vented about 100 hours of work this spring.

So far, they have not yet taken advantage of him with increases or bonuses, although Solomon hinted at the company’s second-quarter earnings that an update on compensation policy may come in August.

The bank seeks to recruit aid and rapid technological initiatives to streamline labor.

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The latest news for Goldman’s Marcus

Marcus Goldman Sachs

Marcus offers savings and credit products online and through its application.

Reuters


Goldman Sachs has built the consumer-banking arm of a $ 1 billion business over the past five years.

But he has seen a wave of departures, including the departure of top bosses Marcus Omer Ismail and David Stark. And JPMorgan chased the product head to Marcus to join the bank’s digital and product management team for consumer and community banking. Goldman also brought in new hires, including Uber executive Peeyush Nahar, to run the bank’s consumer business.

Trusters explained how Goldman Sachs culture had contributed to Marcus’ exhaustion and high turnover, and a Goldman spokesman told us the company was looking to increase ranks by hiring around 200 to 300 new engineers.

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The impetus for Goldman’s wealth management

Meena Flynn and John Mallory of Goldman Sachs

Meena Flynn and John Mallory head the private wealth business at Goldman Sachs.

Goldman Sachs


Goldman, a company synonymous with vast wealth, has tried in recent years to transform itself into a bank that can count someone with just $ 1,000 to invest as a customer, as it has long done business with large companies and the very rich.

He started Marcus Invest, a robot consultant with a minimum of $ 1,000, earlier this year. And it has reorganized the way its wealth businesses are located, creating a new internal consumer and wealth management department that went into effect earlier this year. Goldman has approximately 800 private wealth advisors worldwide.


Representatives of Goldman

When Goldman announced its latest class of partners, one group was particularly well represented on the list. Seven of the 19 investor bankers who were upgraded to affiliate came from the Powerhouse technology, media and telecommunications group.

The group has also seen some turmoil in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the company’s investment banking division since 2017 and a member of Goldman’s board of directors, left in late 2020. Instacart beats Nick Giovanni, head of global technology, media and telecommunications Goldman Sachs team, to be his CFO. And in September, Goldman Sachs emerged as the new leader in the M&A group.

Goldman also drove the

SPAC
explosion, which went into overdrive in the first quarter. It was ranked No. 2 among banks in terms of SPAC IPOs from year to date in mid-March.

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