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Goldman Sachs plans to nominate Tom Montague, a former partner in the Wall Street firm’s trading division and until recently a top Bank of America executive, to its board of directors, according to a person with knowledge of the matter.
Montag’s pending appointment will bring more trading and risk management expertise to Goldman’s board, which in recent years has added new members with distinguished careers in corporate America but who have limited Wall Street experience, including former Starbucks boss Kevin Johnson and Jessica Uhl. Former Chief Financial Officer of Shell.
The gap in risk management expertise is one area that Chairman and Chief Executive David Solomon and his fellow board members are trying to address, according to a person with knowledge of their thinking.
Goldman declined to comment, while Montag could not immediately be reached for comment. The news of Montag’s possible appointment was first reported by Bloomberg.
A former Goldman veteran with deep roots in its trading business will be added to the board amid internal discontent about Solomon’s leadership of the bank. The complaints stem from a failed expansion into consumer banking and a low bonus for 2022, as well as a long-standing complaint about Solomon’s hobby as a DJ and Goldman’s decision early in his tenure to buy two private jets. are concentrated.
After falling nearly 50 percent in 2022, Goldman’s net profit is set to continue declining in 2023 amid a lack of investment banking fees and a slowdown in business. Solomon is trying to expand into asset and wealth management so Goldman is less dependent on volatile investment banking and trading, but it currently doesn’t have the same balance as longtime rival Morgan Stanley.
Montag spent 22 years at Goldman, becoming co-head of its powerful sales and trading business and a member of its management committee. He joined the elite ranks of Goldman Partners in 1994.
He joined Merrill Lynch in 2008, shortly before its sale to BofA during the financial crisis. At BofA he gradually gained more responsibilities, becoming chief operating officer and was seen as a possible successor to chief executive Brian Moynihan.
Montag eventually retires from BofA in 2021. In 2022 he became chief executive of Rubicon Carbon, a carbon offset software platform backed by private investment group TPG.
Additional reporting by Stephen Gandel in New York
