Two longtime Goldman Sachs partners have reportedly threatened to resign after being removed from their posts on top committees created under CEO David Solomon.
Mark Soler, Co-Head of Mergers and Acquisitions, and Gonzalo Garcia, Co-Head of European Investment Banking, in the firm’s London office, have joined the firm’s new global banking and market committees. The unit hinted at the possibility of resigning after being removed from the group. According to the Financial Times.
The FT reported that their co-heads of mergers and acquisitions, Stefan Feldgoys, and Anthony Gutmann, head of European investment banking, who work with them, were among the more than a dozen committee members. However, these two were reportedly removed.
A representative for Goldman Sachs declined to comment.
The committee members were selected by Goldman’s co-heads of investment banking and market integration, Dan Dees and Ashok Varadhan.
The division originally had three co-heads, but last month Jim Esposito announced his departure from the investment banking giant.
Mr. Esposito was seen as a potential successor to Mr. Solomon, who had consolidated his power with the support of the bank’s board of directors.
Earlier this week, Bloomberg News reported that Beth Hammack, co-head of Goldman’s finance group and one of the firm’s most senior female executives, announced her retirement.
Mr. Soler, who has been with Goldman since 1994, and Mr. Garcia, who joined the bank in 1999, would be the top executives to leave the bank if they follow through on their threats.
Goldman revealed last week that Mr. Solomon received a 24% pay increase last year, swelling his compensation to $31 million, even as the bank reported its worst annual profit in four years. did.
A Goldman Sachs spokesperson said last week: “The board is particularly grateful to David for his leadership as we make difficult decisions to continue to focus, execute our strategy quickly, and continue to deliver results for our shareholders.” I recognized his leadership,” he told the Post.
Solomon’s management style has been a source of discontent among the public, who are said to be irritated by his incompetence as a DJ and his use of private jets.
The bank reported net income of $8.5 billion in 2023, the lowest level since 2019, a year after Mr. Solomon took over from Mr. Lloyd Blankfein.
Goldman also reported a return on equity, a key measure of profitability, of 7.5%, well below the bank’s target of 14% to 16%.
Much of that was due to Goldman’s exit from loss-making fintech startup GreenSky, which it sold to a consortium of investors led by private equity firm Sixth Street.
Goldman Sachs stock was flat on Thursday.
