Goldman Sachs veteran Stephen Scherr has been named the bank’s new CFO, adding his investment banking experience to the management team of incoming Chief Executive David Solomon.
Scherr will take over from R. Martin Chavez on Nov. 5 after serving most recently as CEO of Goldman Sachs Bank USA and leading Goldman’s consumer and commercial banking division. Chavez, the finance chief since May 2017, will return to the firm’s trading division as one of three co-heads.
Goldman also announced another key addition to Solomon’s team on Thursday, naming John Waldron, currently co-head of the investment banking division, as president and chief operating officer.
“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, who will succeed Lloyd Blankfein as Goldman’s CEO on Oct. 1, said in a news 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,” he added.
As CNBC reports, “The management turnover represents the rise of veteran investment bankers over traders at Goldman Sachs.” While the trading division has dominated the firm for much of its history as a publicly traded company, Solomon, Waldron, and Scherr all have deep roots in investment banking.
“Advisory and capital markets desks have proved to be more dependable sources of revenue compared with trading, which has never recovered from a 2009-2010 high-water mark as regulation and calm markets stifled activity,” CNBC noted.
Scherr has also served as as chief operating officer of Goldman’s investment banking division, global head of the financing group, and chief strategy officer. Goldman said he has led its effort to “to build a digital consumer business that represents [a] significant opportunity to serve millions of new customers and meaningful new growth for the firm.”
“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,” CNBC said.