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According to a reliable source, Goldman Sachs has plans to nominate Tom Montag, a former partner at their trading division and previously a top executive at Bank of America, for its board of directors.
By appointing Montag, Goldman Sachs aims to strengthen its board with more trading and risk management expertise. While the company has added distinguished members from corporate America in recent years, there has been a lack of individuals with substantial Wall Street experience. Notable additions include Kevin Johnson, former CEO of Starbucks, and Jessica Uhl, former CFO of Shell.
The board members, led by chair and CEO David Solomon, have recognized the need to address this gap in risk management expertise.
Goldman Sachs declined to comment on the matter, and we were unable to reach Montag for comment. Bloomberg initially reported the potential appointment of Montag.
This addition to the board comes at a time of internal dissent surrounding Solomon’s leadership. Criticisms have revolved around the failed expansion into consumer banking, lower bonuses for 2022, as well as concerns about Solomon’s DJ hobby and Goldman’s purchase of two private aircraft early in his tenure.
In 2023, Goldman’s net profits continued to decline, following a nearly 50% drop in the previous year. The decline can be attributed to a lack of investment banking fees and a slowdown in trading. Solomon is now focused on expanding the asset and wealth management division to reduce the company’s reliance on volatile investment banking and trading. However, Goldman Sachs currently lacks the same balance as its long-time rival, Morgan Stanley.
Montag brings 22 years of experience from Goldman Sachs, where he rose to the position of co-head of the sales and trading business and was a member of the management committee. He became a Goldman partner in 1994.
In 2008, Montag joined Merrill Lynch shortly before its sale to Bank of America during the financial crisis. He gradually took on more responsibilities at Bank of America, eventually becoming the chief operating officer. Montag was considered a potential successor to CEO Brian Moynihan.
In 2021, Montag retired from Bank of America and became the CEO of Rubicon Carbon in 2022, a carbon offset software platform backed by private investment group TPG.
Additional reporting by Stephen Gandel in New York
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