Goldman Sachs on Monday named Ashok Varadhan as co-head of the securities division, a significant promotion that has in the past paved the way to the bank’s upper echelons for other top-ranking executives.
Mr. Varadhan, who most recently served as head of macro trading in the securities division, will join the co-heads Isabelle Ealet and Pablo Salame in his new role.
The move was announced in an internal memo signed by Lloyd C. Blankfein, Goldman’s chief executive, and Gary D. Cohn, the president. A Goldman spokesman confirmed the appointment.
“As a long-tenured leader in the securities division, Ashok has demonstrated dedication to our clients and a deep understanding of our business,†the memo said.
Mr. Varadhan joined Goldman in 1998. He became the global head of foreign exchange in 2007 and was named the global head of fixed income, currency and commodities emerging markets in 2008. He was named managing director in 2000 and became a partner in 2002.
The securities unit is the largest of Goldman’s four divisions and generated more than half of the bank’s revenue in 2012, according to its most recent annual filings. Co-leading the division is seen as a steppingstone to the most senior management jobs. Mr. Cohn was at one point a co-head of the division, as was Harvey Schwartz, the chief financial officer.
But leadership of the unit has not been without turbulence. Two of the four executives who steered the securities division during the financial crisis, Edward K. Eisler and David B. Heller, stepped down in 2012. The move raised some eyebrows because it is unusual for two division heads to depart at the same time.
The securities unit includes the bank’s fixed-income, currency and commodities operations as well as its equities unit. While the division is still a leading revenue driver for Goldman, the bank has struggled with its fixed-income business in recent months. The company reported that fixed-income revenue dropped 13 percent in 2013.
The text of the memo follows:
February 10, 2014
Ashok Varadhan Named Co-head of the Securities DivisionWe are pleased to announce that Ashok Varadhan has been named co-head of the Securities Division. Ashok, together with Isabelle Ealet and Pablo Salame, will continue to build our client franchise across our Fixed Income, Currency and Commodities (FICC) and Equities businesses.
Ashok most recently has served as head of Macro Trading in the Securities Division, which includes Interest Rate Products, Foreign Exchange and FICC Emerging Markets, and has oversight of the Commodities business in the Americas. Ashok joined Goldman Sachs in 1998 in Swaps Trading. After heading USD Derivative Trading in 2000, he ran North American Interest Rate Products in 2001, became global head of Foreign Exchange in 2007 and was named global head of FICC Emerging Markets in 2008. Ashok was named managing director in 2000 and partner in 2002.
Ashok has been an effective voice on a number of firmwide, regional and divisional committees, including the Management Committee, Growth Markets Operating Committee and Firmwide Risk Committee. He also serves on the Securities Division Executive Committee.
As a long-tenured leader in the Securities Division, Ashok has demonstrated dedication to our clients and a deep understanding of our business.
Please join us in congratulating Ashok on his expanded responsibilities and wishing him continued success in his new role.
Lloyd C. Blankfein
Gary D. Cohn
