The co-head of Goldman Sachs’ securities division Marty Chavez — once seen as a contender for the chief executive’s chair — is leaving the firm, chief executive David Solomon told employees on Tuesday.
Mr Chavez has spent 19 years at Goldman, including a stint as chief financial officer that ended last year when Mr Solomon rejigged the management team he inherited from former chief executive Lloyd Blankfein.
Mr Chavez will be replaced by Marc Nachmann, a London-based, 25-year veteran of the firm who was previously co-head of Goldman’s global investment banking division.
The news comes four months before a long-awaited investor day at which Mr Solomon has promised to reveal further details of a pivot from Goldman’s investment banking and trading roots towards consumer banking and serving smaller companies.
“It helps to make sure we know who’s going to be around for the next few years,” a person familiar with the matter said of the timing of Mr Chavez’s departure, adding that Mr Nachmann’s long service in Goldman’s corporate finance division would be an asset to the securities unit as it tries to become more “client focused”.
Mr Chavez’s most recent role placed him at the heart of the digital transformation of Goldman’s trading arm, a key area of focus for Mr Solomon and his team. Trading revenues at Goldman have fallen more sharply in recent years than at its rivals.
The retirement — Goldman’s preferred term for departing partners — was announced in a memo signed by Mr Solomon, Goldman’s president John Waldron and chief financial officer Stephen Scherr.
The trio said Mr Chavez would step down at the end of the year and become a senior director of the bank, a non-board title used for management committee members who retain a relationship with the firm. That gives him closer ties to the firm than other senior executives who have left under the Solomon regime, including former trading co-heads Pablo Salame and Isabelle Ealet, who left after Mr Solomon’s appointment was announced.
Mr Chavez had a varied career across several stints at Goldman, having joined in 1993 as a senior energy strategist in the commodities division. He moved to Credit Suisse in 1997 and then co-founded energy trading software company Kiodex, before rejoining Goldman in 2005.
“He has been a passionate advocate for engineers throughout the firm, redefining our clients’ experience with software and data,” Mr Solomon wrote, adding that Goldman “has also benefited greatly from Marty’s cross-divisional experience and his deep insight into regulatory reform, market structure and operational infrastructure”.
Mr Solomon also praised Mr Chavez, who is gay, for being a “dedicated and passionate leader” who promoted LGBT+ inclusion both in and outside the workplace.