Goldman Sachs‘ incoming Chief Executive Officer David Solomon has another big change in store.
Solomon has named Stephen Scherr as chief financial officer, replacing Marty Chavez, the firm said Thursday in a release. Chavez is a technologist was has served as CFO since May 2017. He will return to the firm’s trading division as one of three co-heads and was also named vice chairman, it said.
Solomon also named John Waldron as the bank’s president and chief operating officer, a move that had been widely expected within the New York-based bank’s ranks. Waldron had been a co-head of the firm’s investment banking division, an ascendant business that Solomon himself came from.
The moves are Solomon’s biggest since being formally named as CEO Lloyd Blankfein‘s successor earlier this year. He is putting his imprint on his direct reports ahead of taking over from Blankfein on Oct. 1. Among Solomon’s challenges are to execute on a $5 billion revenue growth plan by expanding the firm’s client base and pushing into consumer finance. Scherr had been head of the consumer and commercial banking division and chairman of the company’s management committee.
“John and Stephen will work closely with me to develop and execute our strategy, grow our client franchise, ensure strong risk and capital management and safeguard our unique culture,” Solomon said in the release. “I have worked with John and Stephen for nearly two decades and am confident that they bring the right complement of skills to help lead the firm through their respective roles.”
The management turnover represents the rise of veteran investment bankers over traders at Goldman Sachs. Blankfein had been a precious metal salesman and rose through the ranks of the firm’s trading division, which has dominated the firm for much of its history as a publicly-traded company. Now, Solomon, Waldron and Scherr all have deep roots in the investment banking side of the business. Advisory and capital markets desks have proved to be more dependable sources of revenue compared to trading, which has never recovered from a 2009-2010 high water mark.
While Waldron’s promotion was expected, it was originally thought that he would have a co-president, perhaps someone who hailed from the firm’s trading division.
Last month, Solomon named Jim Esposito to be global co-head of the firm’s trading division along with Ashok Varadhan.