Morning Coffee: Goldman Sachs might like more people like Tom Montag for its board. Teenage summers destroyed by dreams of banking jobs
When Goldman Sachs summoned Tom Montag to join its board of directors in 2023, it was something of a homecoming. Montag, who spent over two decades at Goldman Sachs before leaving for Bank of America in 2007, knew Goldman Sachs. He knew David Solomon. He knew about banking and markets. Montag is now perched atop the Goldman Sachs risk committee, where uses his knowing to help steer the firm out of trouble.
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Not all members of Goldman's board are Montags, though. One (Kevin Johnson, used to run Starbucks.) Another (Jan Tighe) was a vice admiral in the US navy. Ellen Kullman is a former CEO of manufacturing firm DuPont.
It's good to have a mix of perspectives on a board, even though Johnson's experience paying baristas may not be directly relevant when he's considering how to pay people at Goldman as part of the firm's compensation committee. But if there were a few more Montags, it might be good. And Montags are not always easy to find - especially if you're committed to finding diverse people to fill the seats.
Fortunately, then, Goldman Sachs is doing away with the diversity criteria that might stop it stocking the board with retired bankers or consultants. The Wall Street Journal reports that Goldman plans to scrap the DEI criteria that have committed it to considering 'race, gender identity, sexual orientation and other diversity factors' when making board appointments. Henceforth it will be meritocracy straight down the line.
The composition of the Goldman Sachs board in 2007 suggests the likely outcome of this change. During the glory days in the foothills financial crisis, Goldman's board comprised 10 men and two women, instead of the nine men and five women it has now. One of the men from 2007 had a gateau-related background as the ex-chief executive of Sara Lee, but most of the others had worked in financial services or consulting. As Goldman's DEI requirements are rolled back, the firm's board may become the ultimate resting place for the big (male) beasts of finance once they've done their time elsewhere. That may, or may not, be a good thing.
Separately, young people are also becoming less diverse as they find themselves corralled into pursuing careers at ever-younger ages. The Wall Street Journal reports that overachieving teenagers are working on 'summer portfolios' and crafting 'narratives' that will get them into top universities and then top jobs. Hanging-out aged 16 is no longer a thing. Spending time interning or signalling an intense interest in your chosen area is where its at. This might be what it takes to become a future Goldman Sachs board member.
Meanwhile...
Ex-Citi trader Jonas Klink is a new star on the UBS SSA and covered bond desk. Hedge funds really want to hire him, says someone. (IFR)
Morgan Stanley reshuffled its EMEA investment banking team. William Bertagna is the new head of investment banking for EMEA. Karsten Hofacker is taking up the role of head of EMEA financial sponsors M&A. (Bloomberg)
Did Kathryn Ruemmler leave Goldman Sachs because clients were complaining and refusing to participate in women's projects? (WSJ)
Citi is building a crypto wealth business. (X)
Here are 12 insane Claude prompts that replace $400K/year quant researchers. (X)
If you study at the Indian School of Business, your salary will increase 248% to $202k. (FT)
A partner at KPMG Australia was found out using AI tools to pass an AI exam. (FT)
The chief executive of NatWest says graduates hired into banks in the future will be scientists, software engineers, architecture planners and “prompt engineers.” (Telegraph)
Many women are no longer reading books about leaning-in, but are embracing rest and self-care. “Caring about your job is silly.” (Bloomberg)
When you leave banking, everyone expects you to work for free. This includes providing careers advice and helping friends with start-ups. There is a belief that "you don’t need the money anyway." (FT)
A side effect of Ozempic seems to be "extreme apathy". (Vox) This is probably not good if you're a trader. (X)
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