Updated, 2:52 p.m. |
Goldman Sachs named a new chief strategy officer on Monday, replacing an executive who had worked at the firm for nearly 30 years and is retiring at the end of the year.
Taking the reins at the new position is Stephen M. Scherr, who is the head of the firm’s financing group, according to an internal memorandum reviewed by DealBook. He will be taking over from Andrew A. Chisholm, who will focus on financial institution clients until year end and then becoming an advisory director.
Mr. Chisholm joined Goldman in 1985 with a specialization in mergers, and then joined the firm’s financial institutions group while working in the investment bank’s London office. He returned to the United States to lead the financial institutions team globally in 2003, and then was named senior strategy officer in 2012.
In that role, he was tasked with helping Goldman’s management committee on the firm’s broader strategy, including identifying competitive trends.
His replacement is Mr. Scherr, who has served in a number of positions at the bank, including chief operating officer for the investment banking division.
In addition to his new role, Mr. Scherr will remain the head of Latin America and will continue to serve on committees overseeing Goldman’s risk, capital and growth markets.
The origins of his latest assignment arose from a strategic review that he had led of the firm’s internal bank at the behest of Lloyd C. Blankfein, Goldman’s chief executive, according to a person briefed on the matter. Mr. Blankfein became interested in a broader mandate about not only identifying but also actively building out new growth initiatives.
For example, the chief strategy officer could examine ways to use the internal bank for new lending products for both corporations and individuals, or look at new initiatives for the firm’s private wealth management.
Around the time that Mr. Blankfein broached the idea to Mr. Scherr, Mr. Chisholm — who had moved to Toronto — had been weighing other career options and has indicated an interest in retiring, this person said.
“As a long-tenured leader in the Investment Banking Division (IBD), and as global head of the Financing Group since 2008, Stephen has a deep understanding of all of our businesses and of the needs of our clients,” Mr. Blankfein and Gary D. Cohn, the firm’s president, wrote in an internal memo. “As we advance the firm’s global strategy, Stephen will identify and help execute on opportunities to grow and build upon our strong client franchise across our core businesses.”
Goldman also named other executive shifts in the wake of Mr. Scherr’s appointment in two other memos (these from Richard J. Gnodde, David Solomon and John S. Weinberg). Replacing him as head of the global financing group are Jim Esposito, who was most recently the head of financing for Europe, the Middle East and Africa, and Marc Nachmann, a co-head of the global natural resources team.
Succeeding Mr. Nachmann atop the global natural resources team are Gonzalo Garcia and Suhail Sikhtian as co-heads. Brett Olsher will also become co-chairman of the group, alongside John Vaske.
Here’s the internal memo for Mr. Chisholm:
June 2, 2014
Andrew A. Chisholm to Retire From Goldman Sachs
After nearly 30 years of outstanding service to Goldman Sachs, Andrew A. Chisholm, the firm’s senior strategy officer, has decided to retire at the end of the year. Andy will continue to co-chair the Commitments Committee and focus on many of our financial institution clients through at least the remainder of the year. We are pleased that he will become an advisory director at that time.During his career, Andy played a critical role in helping to establish our Financial Institutions Group (FIG) franchise, which grew significantly during his tenure and had to respond to the sectoral challenges emanating from the financial crisis. He worked with several of the most important financial institutions in the world on many of the most significant transactions. In addition, he has helped develop and mentor many of our bankers in FIG.
As senior strategy officer, Andy worked closely with us and the Management Committee to advance our strategy in key areas across our businesses and identify significant trends across the competitive landscape.
Andy joined Goldman Sachs in New York in 1985 in Mergers & Acquisitions. He moved to London in 1987 and joined FIG within the Investment Banking Division while there. Andy ran FIG in Europe for many years, then returned to New York in 2003 to head FIG globally, until 2012, when he was named senior strategy officer. He was named managing director in 1996 and partner in 1998.
Andy is vice chair of the Advisory Board for the Ivey Business School in Canada, as well as a member of the Advisory Council for the City Works initiative at Evergreen Brick Works in Toronto.
Please join us in thanking Andy for his dedication to the firm and wishing him, his wife Laurie and their family all the best.
Lloyd C. Blankfein
Gary D. Cohn
And here’s the memo for Mr. Scherr:
June 2, 2014
Stephen M. Scherr Named Chief Strategy Officer
We are pleased to announce that Stephen M. Scherr will become the firm’s chief strategy officer and join the Executive Office. Stephen will work across the firm to develop and drive important growth initiatives as part of the firm’s global strategy.As a long-tenured leader in the Investment Banking Division (IBD), and as global head of the Financing Group since 2008, Stephen has a deep understanding of all of our businesses and of the needs of our clients. As we advance the firm’s global strategy, Stephen will identify and help execute on opportunities to grow and build upon our strong client franchise across our core businesses. As part of his role, we have asked Stephen to help coordinate our lending business as we leverage our existing bank platform to provide credit to both corporate and individual clients. Stephen will also maintain his position as head of Latin America, a role he assumed in 2011.
Stephen previously served as chief operating officer of the Telecom, Media and Technology Group, chief operating officer for IBD and head of the Americas Financing Group. He was named managing director in 2001 and partner in 2002. Stephen became a member of the Management Committee in 2012. He will continue to serve as a member of the Risk Committee, Firmwide Capital Committee and the Growth Markets Operating Committee.
Please join us in congratulating Stephen on his new responsibilities and wishing him success in his new role.
Lloyd C. Blankfein
Gary D. Cohn