Goldman Sach's Thornton to retire to China
John Thornton, the joint-chief operating officer and president of Goldman Sachs, will retire on 1 July to become a professor at a university in China, the Wall Street bank announced last night.
The unexpected departure of Mr Thornton, who was seen by many as heir apparent at the bank, helps clear the way for his co-chief operating officer John Thain to succeed Henry "Hank" Paulson as chief executive. Analysts last night said Mr Thornton's exit probably indicated that Mr Paulson, 56, had no plans to retire from his post in the near future.
Mr Thornton, 49, will teach at Tsinghua University in Beijing, and will continue to serve as a senior adviser to the bank. He joined Goldman Sachs in its' mergers and acquisitions department in 1980 and went on to make his name in London, where he helped establish Goldman Sachs as a force in the City.
Mr Thornton first hit the headlines when he helped defend ICI against the unwanted attention of Hanson in 1991. He also planned Goldmans' expansion in Asia in the 1990s.
Mr Thorntonwas named president and co-COO in 1999, the year Goldmans went public. He is the third-largest individual shareholder in the the bank, with about 3.1 million shares, worth about $220m (£140m). But his pay fell to $11.2m last year, down from $16.3m in 2001, reflecting a 20 per cent fall in investment banking revenues.
Analysts last night specutlated that the bear market could have influenced his decision to leave. Like other Wall Street banks, Goldmans has become increasingly dependent on trading revenues and Mr Thain is a former bond trader. Another possible successor for Mr Paulson is Lloyd Blankfein, the head of Goldmans' fixed income unit.
"Power goes where the money comes from and clearly the money comes from different pockets right now," Michael Vogelzang, the president of Boston Advisors, told Bloomberg News.
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