Age: 53
Education: A.B. from Harvard; J.D. from Harvard Law School
Previously: President, Goldman Sachs; head of Goldman’s trading divisions
Throughout its history, Goldman Sachs has been led by investment bankers — white-shoe types who viewed themselves as guardians of gentlemen capitalism. Enter Lloyd Blankfein, who ascended to the CEO spot in 2006 via the trading desk. In many ways, he had driven the firm’s phenomenal performance over the last half-decade as the head of that desk, then as the CEO-in-waiting.
The son of a postal worker who was rejected by Goldman the first time he applied to work there almost three decades ago, Blankfein reflects the shift in the securities world from advising to trading and investing in-house money — a shift that continues with the 53-year-old in the top spot, continuing Goldman’s remarkable earnings run. While much of the market was getting crushed by the subprime-induced credit crunch, Goldman stunned investors with a 79 percent third-quarter-over-quarter net-income spike. As of mid-October, its stock was up more than 260 percent for the previous five years.
Our respondents understand this sector particularly well, and Blankfein, considered less formal and egotistical than the typical Wall Street CEO, easily outpaced second-place James Dimon. “He directs the company with razor-sharp precision,” says Dietmar Scherf, the CEO of Cascada Corporation, a hedge fund. “We saw that in the third quarter. He’s kept Goldman moving in the right direction.”
Upcoming Challenges:
These are uncertain times for banks, as they have become further involved in hedge funds and private-equity funds, and have invested their own capital in more and more complex strategies of infinite variety. Blankfein’s risk-management experience should prove key.
Executive Fact:
Blankfein was born in the Bronx and grew up in the Brooklyn projects. He paid his way through Harvard on financial aid and scholarships.
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