By Lauren Tara LaCapra
NEW YORK Feb 11 Goldman Sachs Group Inc
said in staff memos on Tuesday that it has added five executives
to its management committee, the latest in a series of
promotions and departures near the top of the Wall Street bank
over the past few years.
The new management-committee members are Paul Russo, Michael
Daffey, Justin Gmelich, Craig Broderick and Sarah Smith,
according to the memos, which were signed by Chief Executive
Lloyd Blankfein and Chief Operating Officer Gary Cohn. They were
confirmed by a spokesman.
The appointments increase the size of Goldman's management
committee to 34 members. The powerful group represents senior
executives across trading, investment banking, asset management,
finance and other operations who are responsible for developing
and implementing the bank's broad strategy and business
Russo and Daffey are co-chief operating officers of
Goldman's equities trading business, while Gmelich is global
head of credit trading. Broderick is chief risk officer, and
Smith is controller and chief accounting officer.
All of the executives have been employed by Goldman Sachs
for roughly 15 years or more. Among them, Broderick has been
employed by the bank for the longest time, having joined in
The promotions come a day after Goldman named Ashok Varadhan
as a third co-head of securities, and are reflective of sweeping
changes across the senior ranks of the bank as Blankfein
approaches his eighth year as chief executive officer in June.
For instance, at the start of 2012, the securities business
was run by three different executives, two of whom have since
left Goldman and one of whom, Harvey Schwartz, replaced longtime
chief financial officer David Viniar last year.
Vice Chairman J. Michael Evans, who was seen as a potential
successor to Blankfein, retired at the end of the year.
Dozens of highly paid Goldman partners have left since 2011,
making way for younger talent to move up the ranks, but also
allowing the bank cut costs. Compared with 2010, Goldman's staff
levels have dropped 8 percent, but its compensation costs are
down 18 percent.
Though there is no sign that Blankfein plans to step down in
the immediate future, executives have described the senior-level
changes as part of a gradual succession plan that will leave the
bank on solid ground when he eventually retires.