Goldman Sachs Executive Heads to Milan Amid London's Challenges

A senior figure from Goldman Sachs based in London is planning to exit the UK, a move that highlights challenges facing the City.

Richard Gnodde, who took on the role of vice chair this January after a long tenure managing the bank's worldwide operations, is expected to move to Milan, as noted by an insider.

City AM initially covered the news.

In Gnodde’s new position, his main focus will be on fostering the firm’s growth across the European continent. Nevertheless, he will keep working closely with the London team, according to a representative from Goldman Sachs who spoke to Business Insider.

Having started his career with Goldman Sachs in London in 1987, the South African-born banker previously held the role of co-chief executive of Goldman Sachs International prior to a major leadership restructuring announced earlier this year.

Gnodde’s exit represents yet another concern for the City of London regarding the UK's diminishing political and economic clout.

When the Labour party took office the previous year, they committed to spurring economic development and lifting productivity levels. However, the Bank of England lowered its growth prediction for 2025 to merely 0.75% in February.

Contrary to many other developed countries expecting an increase in wealthy individuals, the UK is projected to see a reduction of 17% in its millionaire population by 2028, according to the 2024 wealth report from UBS.

Notably, several high-profile individuals have chosen to leave the UK following modifications to a longstanding tax policy that previously allowed international wealth to bypass UK taxation.

"Non-doms" or non-domicile status pertains to residents who live in the UK but retain homes offshore.

Formerly, such individuals were subject to UK taxes solely on income generated within the country.

The revamped guidelines, implemented on April 6, have eradicated the non-dom classification and imposed stricter controls on overseas trusts.

With these changes, many non-doms now face taxes on earnings made abroad, prompting some to depart from the UK.

In contrast, Italy has positioned itself as an attractive option for Europe's wealthiest citizens.

Since 2017, Italy has provided a "golden visa" initiative, imposing a consistent annual foreign income tax of 200,000 euros (around $227,000).

Nassef Sawiris, billionaire proprietor of Aston Villa, recently transitioned his residence from London to Italy and Abu Dhabi. His decision, discussed with the Financial Times, attributed to earlier governmental policy attempts rather than the fresh tax changes.

Other prominent figures exiting the UK include billionaire steel magnate Lakshmi Mittal and property mogul Asif Aziz.