Read the memos Goldman Sachs sent out to employees announcing the big management overhaul

Goldman Sachs announced a big shakeup to its leadership team Thursday as incoming CEO David Solomon moved to put his management team in place before taking over from Lloyd Blankfein.

Goldman named John Waldron, one of three co-heads of the investment banking division, to president and chief operating officer, and effectively Solomon's No. 2. Waldron's new role will become effective Oct. 1.

Stephen Scherr, the head of the consumer and commercial banking division, will become chief financial officer, as CFO Marty Chavez shifts to become one of three co-heads of the securities division.

Here are the two memos that Goldman released to employees announcing the changes.

John E. Waldron Named President and Chief Operating Officer; Stephen M. Scherr to Become Chief Financial Officer

We are pleased to announce that John E. Waldron will become the president and chief operating officer of Goldman Sachs, effective October 1, and that Stephen M. Scherr will become chief financial officer, effective November 5 following the filing of our third quarter results.

John and Stephen will work closely with David to develop and execute our strategy, grow our client franchise, ensure strong risk and capital management and safeguard our unique culture. Having worked together over the course of their careers at the firm in a number of different businesses, John and Stephen bring the right complement of skills to help lead the firm through their respective roles.
John has played a critical role in sustaining and enhancing our global position in M&A and underwriting since being named co-head of the Investment Banking Division (IBD) in 2014. As a long-tenured leader in IBD, John has helped us to develop many of the firm's most important client relationships and to drive our global coverage strategy.
John previously served as global head of Investment Banking Services/Client Coverage for IBD. Prior to that, while based in London, he was global co-head of the Financial Sponsors Group from 2007 to 2009. Before that, he co-headed Leveraged Finance from 2005 to 2007 and co-headed the Media and Entertainment Group in IBD from 2002 to 2005. He joined Goldman Sachs in 2000 and was named managing director in 2001 and partner in 2002.
John serves on the Management Committee, Firmwide Client and Business Standards Committee, Firmwide Business Planning Committee, IBD Executive Committee and IBD Client and Business Standards Committee.
Stephen has been chief executive officer of Goldman Sachs Bank USA since 2016. He is also head of the Consumer & Commercial Banking Division. In that role, Stephen has led our effort to build a digital consumer business that represents a significant opportunity to serve millions of new customers and meaningful new growth for Goldman Sachs.
He chairs the Goldman Sachs Bank USA Management Committee and serves on the Management Committee, Firmwide Risk Committee, Firmwide Finance Committee and Firmwide Investment Policy Committee.
Stephen joined Goldman Sachs in 1993 as an associate in the Financial Institutions Group. In 1996, he transferred to Emerging Markets/Capital Markets in the Fixed Income, Currency and Commodities Division. Over the next several years, Stephen held a number of senior roles across the firm, including as chief operating officer for the Investment Banking Division, global head of the Financing Group from 2008 to 2014, head of our Latin American business and the firm's chief strategy officer from 2014 to 2017. He was named managing director in 2001 and partner in 2002.
John and Stephen have been exceptional leaders and have distinguished themselves in their commitment to our culture of teamwork and client service. Please join us in congratulating both of them and wishing them continued success.
Lloyd C. BlankfeinDavid M. Solomon

R. Martin Chavez to Become Vice Chairman of Goldman Sachs and Co-Head of the Securities Division

We are pleased to announce that Marty Chavez will become vice chairman of the firm and co-head of the Securities Division with Ashok Varadhan and Jim Esposito.
Our businesses in FICC and Equities continue to undergo rapid transformation as the automation of prices, price formation and execution define the evolving market structure.
Marty's unique experience as chief information officer (CIO) and chief financial officer (CFO) will be critical to helping lead Securities and ensuring that we are best positioned to serve our clients, develop market-leading electronic platforms and deploy our capital effectively. As CIO, Marty led our engineers across all divisions globally and developed an innovative, client-centered technology strategy. As CFO, he managed the firm's capital, including leading our efforts in CCAR and other important regulatory processes.
Marty is a member of the Management Committee, Firmwide Capital Committee, Firmwide Risk Committee and Steering Committee on Regulatory Reform. Marty is also a member of the Firmwide Hispanic/Latino Network and the Lesbian, Gay, Bisexual and Transgender Network.
Marty first joined Goldman Sachs in 1993 in the J. Aron Currency and Commodities Division, where he was a senior energy strat until 1997. He returned to the firm as a managing director in Investment Banking Division Strats in 2005, becoming global co-head of Securities Division Strats and then global co-chief operating officer of the Equities Franchise. He became CIO in 2013, and assumed his current role in 2017. Marty was named partner in 2006.
Please join us in congratulating Marty and wishing him continued success.

Lloyd C. BlankfeinDavid M. Solomon

NOW WATCH: Beware one huge mistake investors often make when the economy is at a crossroads, says Charles Schwab's investment chief