Walmart, which is backing Ismail’s venture, is a powerful new entrant. That has pitted Goldman against a broad range of rivals, from big banks like JPMorgan (JPM.N) and Citigroup (C.N) to fintech firms like PayPal (PYPL.O) in the scrap read more for consumer deposits and credit cards. Ismail was the head of Marcus, the consumer banking unit that is an important growth engine as the $115 billion firm expands beyond its investment banking and trading roots. Solomon’s decision reflects the significance of the defection. Even if Goldman is legally entitled to reclaim the shares, doing so is an aggressive move. Goldman gives some top executives equity that vests over a three-year period but cannot be sold for five years. What’s particularly punitive in Ismail and Stark’s case is that, according to Bloomberg, the bank is confiscating shares they had already received. But such steps can send counterproductive signals.īankers who join rival institutions usually wave goodbye to deferred stock that has not yet vested. The move suggests Goldman has more competitors than before. The Goldman Sachs (GS.N) leader may confiscate stock the Wall Street bank previously issued to Omer Ismail and David Stark, who jumped ship last year to start a new financial business for Walmart (WMT.N), Bloomberg reported on Wednesday. NEW YORK, Feb 23 (Reuters Breakingviews) - David Solomon is coming down on former employees with the force of his biblical namesake.
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