Goldman Sachs Contemplates Major Management Committee Overhaul: Report

Goldman Sachs GS is reportedly mulling over a major revamp to its management committee, potentially marking the most significant restructuring in years.

What Happened: Based on Insider information, Business Insider reports that the company’s CEO, David Solomon, is considering a significant reshuffle of the committee due to recent staff changes, according to sources familiar with the matter. The changes could involve either an expansion or a substantial reduction of the committee.

The committee currently includes 30 members, with three members due to retire this month. Additionally, three veteran members left the firm earlier this year, while another member, Stephanie Cohen, has been on leave since the summer.

The company’s president and Solomon’s close aide, John Waldron, is involved in advising Solomon on the potential changes and conducting internal discussions with possible candidates, the sources mentioned.

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If the committee sees an expansion, the new members are likely to be of a younger generation who have a closer relationship with Waldron. This could provide Waldron, who is considered to be Solomon’s likely successor, with more allies on the firm’s most influential committee.

However, no final decision has been taken yet, and the final word rests with Solomon. If he opts for a major overhaul, it could be the most substantial change at Goldman since he appointed five executives to the committee in January 2020.

Potential candidates for a committee seat include bankers Kim Posnett, Matt McClure, Mark Sorrell, Stephan Feldgoise, Vivek Bantwal, Anthony Gutman, and Wolfgang Fink. Insiders suggest the final announcement is expected next month.

Why It Matters: The potential restructuring comes against a backdrop of recent significant changes within Goldman Sachs. In September, the firm asked employees to return to the office full-time. Furthermore, earlier the same month, Goldman Sachs prepared for another round of job cuts, primarily targeting low performers as part of a $1 billion cost reduction initiative. These changes may have contributed to the management committee’s need for a possible reshuffle.

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