Institutional investors control a combined $70 trillion in assets – and the majority of people managing that massive money pile are white, male, or both.
Insider spoke with eight Black women in high-powered asset-management roles who collectively control billions of dollars in assets. They shed light on whether the industry’s diversity problems are fully understood. They also discussed victories and pivotal moments in their careers:
“I’m fully aware that when you ask the random person, ‘What comes to mind when you think of an investment manager?’ I’m pretty sure that the image that comes to mind doesn’t look like me,” said Tina Byles Williams, the founder, CEO and CIO of Philadelphia-based asset manager Xponance. “It probably doesn’t look like a woman, and it surely doesn’t look like a Black woman. That is the opportunity and the burden.”
“I unapologetically take up space,” said Dominique Cherry, head of capital markets at the Philadelphia Board of Pensions and Retirement. “You just make a decision that you’re going to take up as much space as needed until that point that your presence is recognized, your voice is heard, and hopefully you can bring a couple of young people along the way with you.”
The Wall Street bank has taken steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is executing on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.
But the bank’s top ranks have also seen turnover this year, shedding execs within its management committee and partnership.
At the junior level, some young bankers are frustrated about not yet receiving base salary raises even as some bank competitors have raised pay.
Here’s a rundown of the must-know news at Goldman, including the latest hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management push.
Who are the top leaders at Goldman?
Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.
Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.
The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.
Goldman Sachs juniors vented this spring about 100-hour work-weeks.
So far, they’ve yet to benefit from it in the way of raises or bonuses, though Solomon hinted on the firm’s second-quarter earnings call that an update to their compensation policy might come in August.
The bank has been looking to hire reinforcements and fast-track tech initiatives to streamline work.
Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.
But it’s seen a wave of departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking. Goldman has also brought in new hires, including Peeyush Nahar, an executive at Uber, to head the bank’s consumer business.
Insiders explained how Goldman Sachs’ hard-charging culture had contributed to exhaustion and high turnover within Marcus, and a Goldman spokesperson told us that the firm is eyeing beefing up the ranks by hiring some 200 to 300 new engineers.
Goldman, a firm synonymous with enormous wealth, has in recent years tried to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has long done business with large companies and the very wealthy.
When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.
The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.
Goldman has also been riding the SPAC boom, which went into overdrive in the first quarter. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.
Ishan Malik, a JPMorgan trader on one of the hottest desks on Wall Street, is out. In addition to a series of tweets that may have prompted his exit, insiders said Malik had a track record of abrasive and hot-headed behavior that alienated people he worked with.
Incoming Amazon CEO Andy Jassy’s newest stock award totaled more than $214 million, a high-dollar payout that would vest over 10 years, but still paled in comparison with founder Jeff Bezos’ company holdings.
Amazon on Friday filed paperwork with the Securities and Exchange Commission (SEC) detailing Jassy’s newest award of 61,000 shares. Amazon stock ended the week at $3,510.98 per share, placing Jassy’s new grant just above $214 million.
Jassy’s total Amazon holdings before the award were worth about $270 million, according to an Insider analysis of his SEC filings.
He owned about 0.02% of Amazon stock, according to FactSet data reported by CNBC on Friday.
Bezos’ Amazon stake totaled about $170 billion in May. He sold about $10 billion in stock in 2020.
Wall Street analysts’ average price target for Amazon’s stock was $4,241.33, about 21% above Friday’s close, according to Yahoo Finance.
The stock ticked up 2% in after-hours trading on Friday.
Jassy sold about 460,000 Amazon shares over the last 15 years, according to Insider’s analysis. If he hadn’t sold those shares, his holdings would have been worth about $1.8 billion in February, it said.
JPMorgan is the biggest bank in the US and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.
Private banking and wealth management are a key part of JPMorgan’s future.
In the past year, the bank has hired about 100 advisors for its private-bank division, which oversees more than $836 billion in client assets and caters to individuals worth at least $10 million. JPMorgan plans to hire as many as 1,500 new advisors over the next five years, doubling its current private-bank advisor head count, Private Bank CEO David Frame told Insider.
The bank this month also said it’s buying UK robo-advisor Nutmeg, which oversees some $4.9 billion for around 140,000 investors. The 9-year-old startup already used portfolios with active and passively managed exchange-traded funds provided by JPMorgan Asset Management.
JPMorgan has big plans for employees at the bank’s roughly 4,900 US branches. The bank is aiming to have all US branches staffed with licensed relationship bankers who can offer investment advice to clients by the end of the year, Insider has learned.
Wealth management plans
JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Business Insider this fall.
Lemkau, who has been with the bank for over two decades and was previously its chief marketing officer, was named head of JPMorgan’s new wealth division in December 2019. Its various wealth businesses, including its self-directed wealth product, were reorganized under one umbrella.
The bank on May 18 promoted two women to co-lead the firm’s massive consumer and community banking business: consumer-lending chief Marianne Lake and chief financial officer Jennifer Piepszak. The pair will take over running the division from Gordon Smith, who’s retiring this year from his roles as co-president and co-chief operating officer of the firm and CEO of CCB.
The moves shine a light on succession planning at the firm, as Lake and Piepszak are two of the top contenders to take over for CEO Jamie Dimon when he eventually retires. Smith had also been rumored to be in the running for the top job before announcing his retirement.
JPMorgan in May named James Reid and Melissa Goldman to be CIOs of two newly-formed groups to help modernize tech for employees.
Reid is CIO of the firm’s employee experience and corporate technology organization, which is modernizing the tech employees use internally. And Goldman, also the firm’s chief data officer, is CIO of the finance, risk, data, and controls (FRDC) technology group.
JPMorgan also hired another ex-Marcus executive, Sherry Ann Mohan, chief financial officer for business banking, CNBC first reported. Mohan, who will start August, was previously at Goldman Sachs for 15 years and most recently the CFO of the consumer business, including the Marcus brand and Apple Card..
Wall Street hiring has been red-hot in recent months.
Insider has compiled a searchable list of more than 350 Wall Street recruiters.
The database includes headhunters who focus on traders, dealmakers, portfolio managers, and bankers.
Wall Street headhunters have been plenty busy this year.
Buy-side trading firms have been snapping up a slew of star derivatives traders from investment banks. Top healthcare bankers are in high demand, with one recruiter describing search requests from clients as being “extremely, extremely active.” And the market for quant and data-science specialists has perhaps never been hotter.
Business Insider spoke with its network of sources and mined online data from over 80 recruiting firms to compile a list of more than 350 headhunters that source talent for Wall Street firms.
Our database includes recruiters who focus on front-office investment professionals: traders, dealmakers, portfolio managers, and investment bankers.
Jon Gray still remembers what it was like when he was hired as an entry-level analyst at a seven-year-old private-equity shop in New York City in 1992.
“It was a tiny place … I think there were 80 or 90 people,” Gray said of Blackstone, a firm that would go on to become the world’s largest alternative investment manager and, during Gray’s time as head of global real estate, its largest property owner.
Fresh out of the University of Pennsylvania, Gray was interviewed by the Blackstone cofounders Stephen Schwarzman and Pete Peterson themselves. He couldn’t have predicted that he would eventually be named Blackstone’s president and chief operating officer in 2018, becoming one of the most powerful executives on Wall Street.
“For me, a kid from suburban Chicago, I was like, ‘Oh my gosh, this seems really exciting.’ And it was obviously terrifying being interviewed,” he recalled. “And by the way, starting was terrifying. I remember being so nervous having my first job here.”
Granted, private-equity firms’ associate hiring is looking a little different than in recent years. Recruiters first delayed the kickoff of the ultra-competitive process in the fall of 2020 in light of the coronavirus pandemic. Now the traditional on-cycle associate recruiting process likely won’t start until late summer or early fall 2021, Insider previously reported.
In October of 2020, we spoke with Gray, headhunters who recruit for the firm, and Blackstone’s global head of human resources to learn what it takes to stand out. From how to ace interviews to deals you need to be familiar with, here’s what they told us.
New York City may be a preeminent global financial capital, but the city runs on its small businesses.
Last August, a report by the Partnership for New York City indicated that about a third of the city’s 240,000 small businesses might remain closed when the COVID-19 pandemic subsides.
With a citywide 28-day COVID-19 positivity rate average hovering at 1.1 percent, much of the city has reopened, but there is still work to be done.
For Ray McGuire, a longtime Wall Street executive and one of the eight major Democratic candidates running in the city’s mayoral primary that will be held on June 22, steering the city’s economic recovery after the pandemic would be one of his paramount objectives as mayor.
“I want to have the greatest, most inclusive comeback in the history of New York City,” he said.
McGuire, 64, knows a thing or two about financial advancement, having grown up as the son of a single mother in Dayton, Ohio, and going on to become a top investment business leader.
After graduating from Harvard University, where he earned three degrees – a B.A. in English, as well as business and law degrees – McGuire carved out a career in investment banking, notably at Merrill Lynch. He’d go on to serve as the global co-head of mergers and acquisitions at Morgan Stanley.
McGuire became one of the highest-ranking Black executives on Wall Street when he entered a role as the head of global corporate and investment banking at Citigroup, originating and executing deals valued at over $650 billion.
Now he wants to apply his managerial experience to a city that he says has been hampered by the administration of Mayor Bill de Blasio.
McGuire recently spoke with Insider about his campaign, which has focused on economic issues, affordable housing, and improving access to education throughout the city. Below are edited excerpts from that interview.
Q. You’ve touted your Comeback job accelerator program as a way to bring back economic life to the city in a big way. How would the plan work?
A. My plan is to put 50,000 jobs in small businesses to take care of half of their wages for one year, to help them retain their New York city sales tax receipts for one year, to waive all fees due for one year, to appoint a deputy mayor for small businesses, and to have that deputy mayor have “red tape” commission to cut through all the bureaucracy. There’d be a shot clock, which would put some discipline into when the city responds to applications from small businesses. I want to make this city the best place for small businesses to come.
New York City has so many pressing infrastructural needs that have developed over generations, largely due to a lack of funding. What investments would you make?
In what I call the ‘Go big, Go small, Go forward’ plan … ‘Go big’ is focused on infrastructure, including affordable housing and broadband for the 1.5 million New Yorkers who don’t have it. We’ll also invest in climate resilience for the hundred-year floods that come every five years, in places like the Rockaways [Queens] and Hunts Point [Bronx] and and Red Hook and Coney Island [Brooklyn], along with Lower Manhattan.
Several of your competitors have deep experience in government and they’re now asking voters for a huge promotion. Your business background carves out a different lane in the race. How does your experience differentiate what you would do as mayor from the other candidates?
Most of them have never run organizations that are large and complex. This is not the first time that someone could be in a leadership role, but has never led before. This is serious business. I have had a track record of leading large, complex businesses. That track record extends globally. I’ve had to be a doer, not a talker. The vast majority of them have been talkers and have never managed budgets larger than $10 million or $50 million or $100 million. [In April, Mayor de Blasio released a proposed 2022 budget of $98.6 billion.] We are at a very dangerous intersection in this city. For somebody who’s simply looking for a promotion, was termed out, or served in this failed administration, this is not the time for their first job, nor is it the time for a consolation prize.
You’re running on a change platform. What do you feel is the biggest shortcoming of Mayor de Blasio’s administration?
The biggest shortcoming is a lack of management experience, lack of judgment, and an inability to attract and retain the best talent. It’s almost like a revolving door. Look at how long people have been in their positions.
You’ve basically been campaigning throughout the pandemic. As someone who’s spoken to voters from all walks of life across the five boroughs, what is something that has really stuck out to you over the past few months?
They’re highly, highly, highly skeptical of career politicians. They show up for the photo ops, but things haven’t changed and have actually gotten worse. People want something different. The status quo hasn’t served them.
From humble beginnings, Jeff Sine built a career as an unorthodox banker who offered unvarnished advice and tamed unruly transactions for business moguls like Masayoshi Son and Rupert Murdoch. He defied the odds and built merchant bank The Raine Group into an investing empire in its own right.
Insider spoke with 10 people who have worked with Sine throughout his career, including senior bankers and clients. They explained how Sine became one of the world’s most influential dealmakers, the origins of his relationships with Masa and other key clients, and how he built a billion-dollar business.