Tweet
CEO Paulson once told his alumni magazine, "I'm not an inspirational leader," and he wasn't lying. The chief executive of Wall Street's most powerful firm is awkward rather than glib--and a study in surprises, if not contradictions. Although he owns over $350 million of Goldman stock, he is a Christian Scientist who has inveighed against conspicuous consumption. He has never sold a Goldman share except to donate money to charity, and his worst vice seems to be too many Diet Cokes. "Hank doesn't drink, doesn't smoke, is still on his first wife, and you'd never catch him dead in a Porsche," says a former Goldman partner. Inside the firm, Paulson is seen as smart but not cerebral, prone to action rather than complicated thoughts. And he's incredibly direct. Paulson himself says that one of his big challenges as CEO has been not going "brain to mouth."
[..]
Paulson's schedule is frenetic--dinner with China's Premier one day and lunch with Germany's Chancellor the next--and he spends roughly one-third of his time on the road, visiting clients. They notice. "He is extremely aggressive from the standpoint of acting out of sequence," says Immelt, meaning that Paulson, unlike others, visits not just when deals are happening but also when they aren't. Texas Pacific's Coulter dates the improvement in his firm's relationship with Goldman to a visit Paulson made five years ago. "They show up," Coulter says of Paulson's visits. "I've never asked, and they show up. You do not often see that in other CEOs of his stature." Says Frank Dangeard, a former senior executive of France Telecom: "He has time to give his clients calls, and not many chairmen of Wall Street firms do." Paulson has been to China 68 times since 1992 and is closer to China's leaders than many in the U.S. government.
It's quite clear that Paulson has no plans to relinquish his power. Paulson says that he "wouldn't put a time limit" on his tenure at Goldman, and that he has no intention of following in the Washington-bound footsteps of former Goldman CEOs like Bob Rubin, Steve Friedman, and Corzine.
[..]
Paulson's schedule is frenetic--dinner with China's Premier one day and lunch with Germany's Chancellor the next--and he spends roughly one-third of his time on the road, visiting clients. They notice. "He is extremely aggressive from the standpoint of acting out of sequence," says Immelt, meaning that Paulson, unlike others, visits not just when deals are happening but also when they aren't. Texas Pacific's Coulter dates the improvement in his firm's relationship with Goldman to a visit Paulson made five years ago. "They show up," Coulter says of Paulson's visits. "I've never asked, and they show up. You do not often see that in other CEOs of his stature." Says Frank Dangeard, a former senior executive of France Telecom: "He has time to give his clients calls, and not many chairmen of Wall Street firms do." Paulson has been to China 68 times since 1992 and is closer to China's leaders than many in the U.S. government.
It's quite clear that Paulson has no plans to relinquish his power. Paulson says that he "wouldn't put a time limit" on his tenure at Goldman, and that he has no intention of following in the Washington-bound footsteps of former Goldman CEOs like Bob Rubin, Steve Friedman, and Corzine.
I wonder if Paulson rejected the probable $500k plus salary in lieu of something much more modest? After all, he isn't in the private sector anymore. Conspicuous Consumption of public monies comes to mind.
excerpted from: Inside The Money Machine Wall Street's most celebrated--and secretive--firm is nothing like you'd imagine it to be. The biggest surprise of all? The paranoia that keeps driving Goldman Sachs to the top.
By Bethany McLean September 6, 2004
(And wouldn't you know it, one Tim Geithner speaks fluent Mandarin.)
Comment