David Solomon isn’t the one sharp-elbowed boss at Goldman Sachs — and the Wall Street giant’s asset-management division has been shrinking its headcount because of this, sources told On The Money.
Marc Nachmann — a hard-charging banker who CEO Solomon last October named global head of the Asset and Wealth Management division — has seen a string of top executives flee on his watch and will soon see yet one more exit, On The Money has learned.
Nachmann has alienated a few of his most experienced executives who describe him as “cold hearted” and “a one-man show,” sources said. These people add that Nachmann — who has built a fame for slashing costs — is liked by Solomon but not by the individuals who work for him.
“Marc operates very otherwise than other executives on the firm,” one Goldmanite said. “He doesn’t have a team — it’s his way or the highway.”
Chatter at Goldman’s 200 West St. Manhattan headquarters is that Laurence Stein — EVP and chief operating officer of the group — might be the following partner that Nachmann “drives out,” in line with sources.
Luke Sarsfield (clockwise from left) Laurence Stein, Julian Salisbury and Marc Nachmann. Paola Morrongiello
That’s despite the proven fact that Goldman’s operating chief John Waldron last October had highlighted Stein and Nachmann as partners in a significant project to update the unit’s technology platform.
“The mix of Laurence and Marc are two vital operators on the firm that may really run this as a unified business platform,” Waldron said on the time.
Stay On the Money
Essential weekly read to fuel business lunches.
Ten months later, a source said “Laurence is amazingly unhappy,” noting that under Nachmann his role has been minimized, especially “for the way intelligent he’s and the way much experience and knowledge he brings.”
Solomon has signaled that AWM — a division created as a part of a reported move to reorganize the bank’s structure right into a “mini Blackstone” — is essential to his strategy since it may possibly prop up earnings when dealmaking is slow and markets are choppy.
“The partners within the business fully support our strategy and are fully engaged with it,” Goldman spokesperson Tony Fratto told On The Money on Thursday.
“Marc has been leading this effort, including recruiting and retaining exceptional talent,” Fratto added. “This 12 months he has developed a transparent strategy for the business, and we’re meeting and even exceeding our targets.”
If Stein exits, he can be following within the footsteps of Julian Salisbury, AWM’s former chief investment officer; Luke Sarsfield, former chief industrial officer; and Mike Koestler, former co-president of alternatives.
It’s unclear where Stein would go within the event he leaves — one insider speculated his former colleague Salisbury might bring him over to Sixth Street Capital, where he’s now a partner and co-chief investment officer.
It’s still unclear where Sarsfield has landed following his departure from Goldman.
One other source noted that the wealth management side of the division has remained largely unscathed.
Wealth management’s global head Tucker York and its chief investment officer Sharmin Mossavar-Rahmani have stayed on the firm.
