In the month of March, Goldman Sachs had set the stage for its next era by assigning David Solomon as the sole president under Blankfein, picking him over Harvey Schwartz as heir apparent for the top job.
As per the reports, Solomon asked both executives to stay with the firm, but the two independently decided to leave.
The two co-heads of Goldman Sachs from the securities division, Isabelle Ealet and Pablo Salame, will retire next month after 20-year stints at the Wall Street bank, according to an internal memo checked by the sources.
Salame, a 52-year-old Ecuador native and tennis enthusiast, has led the trading business since 2008 and was named a vice chairman in 2016. Blankfein was among the executives who had poached him from Citigroup Inc. as an emerging markets trader in 1996, and he ran the trading unit with Schwartz for five years. He was seen as an executive who could have taken on a co-president role once Solomon took the CEO role to give the trading division a senior voice, the person said.
Ealet, a 55-year-old French citizen who is an adviser to the nation’s embassy in the U.K.had joined Goldman Sachs in 1991 and rose up through the commodities business that had also produced Blankfein and Schwartz. She took on the co-head role in 2012 on the basis of London report, after leading the commodities unit, which had produced more than $3 billion of revenue annually before the financial crisis.
The departures has left Ashok Vardhan as the unit’s sole chief. Goldman has no immediate plans to appoint new division heads as per the sources.
Ealet joined the bank as a commodities trader in 1991 whereas Salame had joined in 1996 and became co-head of the securities group in 2008.
After gaining one of its worst years in record, Goldman has been overhauling its trading business, including the equities trading and fixed income.
The Chief Executive Officer of Goldman Sachs, Blankfein as well as the other top executives have reported to the investors that the bank is looking to increase trading revenue by leveraging the relationships investment bankers already have with corporate clients.