Goldman Sachs 2002 Annual Report Download - page 7

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BOARD OF DIRECTORS / MANAGEMENT CHANGES
In December, we announced that William George,
former Chairman and CEO of Medtronic, Inc., was
joining our Board of Directors. Bill fills the seat
Steve Friedman left when he retired to become
Assistant to the President for Economic Policy
and Director of the National Economic Council.
We will miss Steve’s contributions to the Board,
although we are gratified that President Bush
will have the benefit of his counsel. And we are
fortunate to gain a new director of Bill’s caliber.
Morris Chang and Meg Whitman also resigned as
directors late in 2002. We are grateful for their
dedication and insights as directors. In February
2003, in light of the announced retirement of Bob
Hurst, the Board nominated Lloyd Blankfein, a
Vice Chairman of Goldman Sachs with responsi-
bility for our securities businesses, to stand for
election to our Board of Directors at the April 1
Annual Meeting. We look forward to having
Lloyd as a new director and we thank Bob for his
contributions to our Board.
Over the past year we changed the ranks
of our senior leadership to meet the challenging
business environment and to ensure the best
possible service to our clients. Lloyd Blankfein,
Bob Steel and Rob Kaplan were appointed Vice
Chairmen and asked to take on expanded man-
agement responsibilities. In addition, Masanori
Mochida, Suzanne Nora Johnson, John Weinberg,
Gary Cohn, Chris Cole, Michael Evans, Scott
Kapnick, Peter Kraus, Eric Mindich, Tom Montag,
Eric Schwartz, Michael Sherwood and Andrew
Melnick joined the firm’s Management Committee
over the course of 2002. These individuals bring
a wealth of talent and experience and a diversity
of perspectives to the Committee.
CONCLUSION
One of the most meaningful tests of individuals
and organizations is how well they handle adver-
sity. In 2002, the people of Goldman Sachs rose to
meet the challenges of the environment and events
with great distinction and considerable success.
We anticipate that the coming year will con-
tinue to be difficult, with slow growth in most of
our major markets. The international situation,
particularly in the Middle East and Asia, is of
concern to us all, and will affect market conditions
in ways that cannot be predicted. And we believe
that close scrutiny of the securities industry and its
role in the late 1990s bubble will continue.
However, there is no question that today
Goldman Sachs is a stronger firm than we were
only a year ago, and well positioned to benefit
from the broad secular forces that, despite recent
setbacks, are driving profound and lasting global
change. As a result, we have even greater confi-
dence in Goldman Sachs’ longer-term prospects
and success.
GO LDMAN SA CH S 2002 A N N UA L R EPO RT 5
JOHN L. THORNTON
President and
Co-Chief Operating Officer
JOHN A. THAIN
President and
Co-Chief Operating Officer
HENRY M. PAULSON, JR.
Chairman and
Chief Executive Officer
(1) Thomson Financial Securities Data — January 1, 2002 through December 31, 2002.
Letter to Shareholders