David Solomon isn’t the only sharp-elbowed boss at Goldman Sachs — and the Wall Street giant’s asset-management division has been shrinking its headcount as a result, 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 could soon see yet another exit, On The Money has learned.
Nachmann has alienated some 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 reputation for slashing costs — is liked by Solomon but not by the people who work for him.
“Marc operates very differently than other executives at 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 — could be the next partner that Nachmann “drives out,” according to sources.
That’s despite the fact that Goldman’s operating chief John Waldron last October had highlighted Stein and Nachmann as partners in a major project to update the unit’s technology platform.
“The combination of Laurence and Marc are two important operators at the firm that can really run this as a unified business platform,” Waldron said at the time.
Ten months later, a source said “Laurence is extremely unhappy,” noting that under Nachmann his role has been minimized, especially “for how intelligent he is and how much experience and knowledge he brings.”
Stein told On The Money: “Marc has been working with our broader leadership team to develop the strategy and bring partners together to lead and execute.”
Solomon has signaled that AWM — a division created as part of a reported move to reorganize the bank’s structure into a “mini Blackstone” — is key to his strategy since it can prop up earnings when dealmaking is slow and markets are choppy.
“The partners in 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 year he has developed a clear strategy for the business, and we’re meeting and even exceeding our targets.”
If Stein exits, he would be following in the footsteps of Julian Salisbury, AWM’s former chief investment officer; Luke Sarsfield, former chief commercial officer; and Mike Koester, former co-president of alternatives.
It’s unclear where Stein would go in the event he leaves — one insider speculated his former colleague Salisbury might bring him over to Sixth Street Capital, where he is now a partner and co-chief investment officer.
It’s still unclear where Sarsfield has landed following his departure from Goldman.
Another 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 at the firm.
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