Predictions for Goldman Sachs in 2012


In an imagined email to Goldman Sachs shareholders, Breakingviews finds an interesting way to raise some bold possibilities for the bank in 2012.

"The 46 percent decline in our share price is not what you have come to expect from us. We are changing our business and management in ways that we believe will create value for our shareholders. Among these changes has been the separation of the chairman and chief executive roles. While joining the two positions made sense in the early years of our public market listing, the regulatory and political climate that has emerged since 2008 necessitates a new approach to managing your company."

Could that really happen? Would the board take this major step? I don't think it's in the cards. But it would be a shareholder friendly move, and if the board were to assert itself in this manner, who would fill these slots?

Here are some more predictions from Breakingviews: "Chairman Gerald Corrigan's experience at the Federal Reserve positions him to lead our efforts in shaping and complying with the new framework of the global financial services business. Mr. Corrigan's new role will give Michael Evans, our new chief executive, unprecedented freedom to focus on our operations, which are also undergoing transformation. As co-chairs of our Business Standards Committee, which reported early in 2011, Messrs. Evans and Corrigan are uniquely qualified to lead our fundamental re-commitment to clients."

Would Evans, assuming he is on tap to become the next CEO, accept becoming anything less than CEO and Chairman? Succession will be a major issue to watch, in any case.

For more:
- here's the article

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