Goldman’s CEO Whisperer John Rogers Steps Down as Chief of Staff

John Rogers, a top Goldman Sachs executive who holds several key positions at the Wall Street firm, will give up one of the most important: his role as chief of staff of the firm, according to an internal Goldman Sachs memo.

Rogers, 67, described as “the man behind the curtain” at the investment bank by at least one former Goldman partner, has played a variety of key roles at the firm since joining in 1994. He has served as chief of staff under four Goldman leaders — Jon Corzine, Henry Paulson, Lloyd Blankfein and, now, David Solomon.

Goldman Sachs reached outside the company for Rogers’ replacement, Russell Horwitz, a 16-year veteran of the firm who until recently was chief of global affairs at hedge fund juggernaut Citadel. 

Horwitz once served as deputy chief of staff to Rogers, according to the announcement, which was issued by Solomon. He also worked as a speech writer for internal and external communications as well as Goldman's philanthropic endeavors.

"Russell does bring continuity to the position," said one former Goldman managing director, who asked not to be identified.

The changes, which will become effective Sept. 5, were reported earlier by The New York Times.

Rogers will remain secretary to the board, a vastly influential position, and continue to hold his other roles at the firm, including executive vice president, member of its all-powerful management committee, as well as chairman of the Goldman Sachs Foundation. 

The changes are already being scrutinized by current and former Goldman executives for what they augur about the firm's future, as well as that of Solomon, who has been under pressure for strategic missteps as well as his management style--which may have played a role in the move.

"Rogers was getting increasingly frustrated that he was giving advice and being ignored," said one former Goldman partner with knowledge of the situation. The former partner cited Solomon's public D.J.ing, prolific use of the firm's corporate jets, and the departure of high profile executives.

A Goldman spokesperson characterized that description of Rogers' sentiments "untrue".

By retaining his secretary to the board position, Rogers will be holding onto a job with "infinitely" more influence than the chief of staff role, the former Goldman partner said.

Still, change could signal a move toward an eventual exit. "You don't stay long at a job if you're losing responsibilities," the ex-managing director said.

Horwitz, for his part, will have a full plate. “In this role, Russell will oversee the operations of the Executive Office, including corporate communications, government and regulatory affairs, and corporate engagement,” Solomon said in the announcement. “He will work closely with the teams responsible for investor relations and marketing.”

He added that “Russell will rejoin Goldman as a partner and a member of the Management Committee and report to me.” The announcement’s authenticity was verified by a Goldman spokesperson. 

A Goldman source, who asked not to be named, said that Rogers played a role in the selection of Horwitz as his replacement. The former partner seconded that. "Nothing happens without Rogers having pulled the strings," the ex-partner said, adding that former CEO Blankfein, with whom Horwitz worked closely, likely signed off on his hiring as well.

Solomon has been under mounting criticism recently, in large part due to missteps in the firm’s push into consumer banking, from which the firm has been steadily retreating. 

The storied investment bank has also faced a series of lawsuits and investigations, including one related to its handling of a botched rescue of Silicon Valley Bank in March.

The firm reported last month that net income had tumbled to $1.22 billion in the second quarter. from $2.93 billion in the year ago period, largely due to the lackluster trading and investment banking environment, as well as charges related to its consumer business and the intended sale of investments in its asset and wealth management division.