One in every of Goldman Sachs’ largest rainmakers at its fairness buying and selling enterprise is leaving the Wall Road financial institution after greater than 20 years.
Joe Montesano, 46, Goldman’s head of fairness buying and selling for the Americas, is retiring from the financial institution, the agency instructed workers on Monday in a memo, which was seen by the Monetary Instances.
Montesano is leaving after three years of big income on the fairness buying and selling enterprise, which benefited from huge inventory market volatility in the course of the Covid-19 pandemic. Goldman’s revenues from fairness buying and selling totalled $11bn in 2022, up nearly 50 per cent from 2019.
Earnings have been such that Montesano was paid greater than the $35mn handed to chief govt David Solomon in 2021, in response to one individual aware of the matter. Montesano doesn’t but have one other job lined up, the individual added.
Goldman confirmed the contents of the memo, which was first reported by Bloomberg, however declined to remark additional.
Montesano joined Goldman in 1999 when he was working for Hull Group, an fairness derivatives market maker that the financial institution acquired. He was elevated to companion in 2014.
Goldman’s famed alumni community is a bedrock of its success as a result of workers who go away the financial institution usually develop into shoppers. However there have been plenty of notable departures of senior bankers throughout Solomon’s tenure.
These embody chief monetary officer Stephen Scherr, co-head of funding banking Gregg Lemkau, and co-head of asset administration Eric Lane.
Nevertheless, at Goldman’s investor day final week, Solomon mentioned the financial institution’s inside numbers confirmed departures total have been in actual fact on the lowest ranges in years.
“I learn over and over about companions leaving the agency. In 2022, there have been much less companion transitions at Goldman Sachs than any 12 months at Goldman Sachs going again to 2014,” Solomon mentioned in response to a query from an analyst about companion turnover.
“In the meanwhile, year-to-date, our turnover is at a five-year low, not only for companions, in the entire agency.”
The three co-heads of Goldman’s world banking and markets division, Ashok Varadhan, Dan Dees and Jim Esposito, wrote within the memo that Montesano had “performed an vital position in strengthening our franchise”.
“He supplied management experience throughout shopper interplay, inside co-ordination and buying and selling technique, and has been instrumental in serving to our shoppers mitigate difficult environments and excessive market volatility,” the trio wrote.
