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Goldman Sachs Faces Female Exodus as Investment Banking Star Departs
Edited by: TJVNews.com
Stephanie Cohen, a prominent figure in investment banking circles and once seen as a potential trailblazer for women at Goldman Sachs, has announced her departure from the firm after a distinguished 25-year career, according to information in a recently published report in The New York Post. Her exit marks another setback for the Wall Street titan amidst a troubling trend of female departures in recent months.
Cohen, who joined Goldman Sachs in 1999 and ascended to the position of partner in 2014, served as the head of the bank’s Platform Solutions department. However, as was noted in the Post report. she is now set to take on a new role as the chief strategist at Cloudfare, a San Francisco-based tech firm, signaling a significant career shift.
The news of Cohen’s departure, initially reported by The Wall Street Journal, comes as a blow to Goldman Sachs, particularly in light of CEO David Solomon’s purported commitment to advancing women into senior leadership roles within the organization, as per the information contained in the Post report. Solomon’s pledge appears increasingly tenuous against the backdrop of ongoing challenges related to gender equality at the bank.
Goldman Sachs has long grappled with accusations of fostering a male-dominated culture, a reputation that was further cemented by a landmark settlement last May. Indicated in the Post report was the fact that the bank agreed to pay $215 million to settle a class-action lawsuit filed over a decade ago, alleging gender-based pay discrimination and sexual harassment against female employees.
In an effort to address the glaring gender disparities within the firm, Solomon is reportedly set to convene a dinner meeting with several women partners. According to the report in the Post, the objective of the gathering is to confront the stark reality of female representation at the upper echelons of Goldman Sachs, as highlighted by recent developments.
A recent analysis published by The Wall Street Journal shed light on the troubling trend of female partners departing from the firm. The findings revealed that approximately two-thirds of women who achieved partner status by the end of 2018 have since left Goldman Sachs, the Post reported. In contrast, just under half of their male counterparts who attained partner status during a similar period have departed the firm.
The departure of Beth Hammack, a highly respected trader with three decades of experience at Goldman Sachs, serves as another notable example of the challenges faced by women within the organization, the Post report explained. Despite her significant contributions, Hammack was overlooked for the position of chief financial officer, which was awarded to Denis Coleman.
The departure of Dina Powell McCormick, a former Trump administration official and esteemed executive at Goldman Sachs, has brought renewed attention to the ongoing gender disparity within the prestigious financial institution. As was pointed out in the Post report, McCormick’s decision to join BDT & MSD Partners, a merchant bank founded by ex-Goldman luminaries Byron Trott and Gregg Lemkau, underscores the challenges faced by women in ascending to senior leadership roles at Goldman Sachs.
Despite efforts to promote diversity and inclusivity, the lack of credible female candidates in the pipeline to succeed CEO David Solomon raises concerns about the firm’s commitment to gender equity. Currently, only two of the eight executive officers at Goldman are women, with both occupying positions in non-revenue generating divisions such as legal and accounting, the report in the Post added.
The absence of female representation at the highest echelons of Goldman Sachs has prompted scrutiny and criticism from industry observers. The stark gender disparity within the firm’s leadership ranks has become increasingly apparent, raising questions about the organization’s commitment to fostering a diverse and inclusive workplace environment.
In June, speculation swirled regarding the future of Stephanie Cohen. Reports surfaced suggesting that Cohen, aged 46 at the time, was considering a leave of absence from the firm, prompting speculation about her potential departure, the Post report said. However, a Goldman spokesperson swiftly refuted these rumors, asserting that Cohen’s leave was temporary and that the firm fully supported her decision to prioritize family commitments.
Tony Fratto, Goldman’s head of communications, reiterated the company’s stance, emphasizing their unwavering support for Cohen during her time away from work. As per the Post report, Fratto emphasized that Cohen’s decision to take a hiatus was driven by personal reasons, and Goldman Sachs remained committed to accommodating her needs.
“She will be returning to Goldman Sachs,” Fratto asserted, dismissing inaccurate speculation and reaffirming the company’s commitment to Cohen.
However, recent developments suggest a shift in Goldman’s messaging. In a memo circulated to employees, CEO David Solomon expressed gratitude for Cohen’s significant contributions to the firm, signaling a departure from previous statements, the Post report explained. Solomon’s memo acknowledged Cohen’s outstanding achievements and extended well wishes to her and her family for the future.
A source familiar with the situation shed further light on Cohen’s status, revealing that the intention was indeed for her to return to Goldman Sachs. According to the Post report, Cohen’s trajectory within the company has been marked by notable milestones, including her elevation to the role of chief strategy officer in 2017 and her subsequent appointment as co-head of the consumer and wealth management unit three years later.
However, Goldman’s foray into consumer banking, spearheaded by Cohen, faced significant challenges and setbacks. Indicated in the Post report was the fact that the partnership with tech giant Apple, along with the acquisition of fintech firm GreenSky, yielded disappointing results. The sale of GreenSky during Cohen’s leave, coupled with plans to unwind the joint credit card venture with Apple, underscored the complexities and difficulties inherent in Goldman’s consumer banking initiatives.
The Post reported that in an exclusive interview with Business Insider on Monday, Cohen revealed her newfound passion for technology and her decision to embark on a new chapter in her professional journey.
“I just got to this place where it was, ‘I want to do this for real,'” Cohen expressed to Business Insider, reflecting on her evolving career aspirations. “This is what I want to do. I don’t want technology to be just a part of it; I want it to be what I do.”
Cohen’s leap into the tech realm will see her assume the role of Cloudfare’s inaugural chief strategy officer, marking a significant milestone in her career trajectory. The Post report explained that the move entails a relocation to Utah, underscoring the transformative nature of Cohen’s transition and her commitment to embracing new opportunities.
Despite her impending move to Utah, Cohen is no stranger to the region. During the tumultuous period of the coronavirus pandemic, she found solace and respite in the area after grappling with a case of long COVID, according to the information in the Post report. Her time spent in Utah not only provided a healing environment but also fostered a deeper connection to the region, paving the way for her eventual relocation.
David Solomon, CEO of Goldman Sachs, lauded Cohen’s invaluable contributions to the firm, highlighting her unwavering dedication to fostering a vibrant organizational culture and nurturing talent across all levels and geographic regions. Cohen’s role as a mentor and trainer has left an indelible mark on the firm, earning her admiration and respect from colleagues and industry peers alike.
With her wealth of experience and unwavering determination, Cohen is poised to make a significant impact in her new role at Cloudfare, further solidifying her reputation as a visionary leader in both finance and technology.
