As we noted earlier this morning, based on reporting from Bloomberg, incoming Goldman Sachs CEO David Solomon launched a new initiative on his first day on the job aimed at wooing and better serving big clients by aligning the company’s main divisions to work in concert with each other. The plan was conveyed to employees in a company-wide memo distributed on Oct. 1. We have since got our hands on the email and posted part of it below.
It contains plenty of corporate jargon, but what’s most interesting is that Goldman will adapt their incentive structure to help push this cross-divisional strategy. Bonuses are seemingly on the line for those who don’t play nice with coworkers in different business units who happen to be serving the same client. It also appears the initiative will start with a select group a clients and be rolled out in a broader push (with likely more specifics) after some initial feedback. Note: we cut the memo short to not include several paragraphs detailing the professional background of the team members in charge.
Establishment of Cross-Divisional Client Coverage Initiative
We are pleased to announce the formation of a cross-divisional client coverage initiative that will develop and implement a more integrated approach to serving our clients who interact with multiple divisions, including Securities, Investment Banking, Investment Management and Merchant Banking. Client service is a core element of our culture and defines the mission of our firm. We strive to deliver comprehensively to our clients advice, capital raising, risk intermediation and management, investing and research across the firm. Providing effective, responsive and thoughtful advice, ideas and execution to an increasingly complex and multi-faceted client base requires us to work across divisions to deliver holistic solutions.
We are pleased that Jack Sebastian, currently co-head of US Equities Sales, will now assume responsibility for Client Relationship Management and Strategy with a focus on Securities clients and will join Alison Mass, global head of the Financial and Strategic Investors Group in the Investment Banking Division (IBD), and Sheila Patel, global co-head of the Goldman Sachs Asset Management Client Business, to lead this client coverage effort.
Alison, Jack and Sheila have each worked with a global and diverse set of clients and their experience will be critical to the success of this initiative. They will report to John Waldron in this context and will help drive our efforts to develop a coverage model that maximizes our ability to deliver an integrated One Goldman Sachs approach to our clients. In this vein, we will work to align our incentive system and team-oriented culture to maximize our ability to address effectively and efficiently our clients’ priorities. This effort will initially focus on a small group of clients with multi-dimensional businesses. As we learn and get client feedback on how we can best deliver Goldman Sachs to meet their needs, we expect to expand the initiative.
David M. Solomon
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