Josh Frydenberg has abandoned plans for a political re-entry, choosing instead to deepen his corporate roots as the newly-appointed chairman of Goldman Sachs (NYSE:GS)' Australia and New Zealand operations.
Political return off table
The 52-year-old had been considering a return to his former seat of Kooyong, which he lost to independent Monique Ryan in the last election.
This shift shores up the position of Liberal Party leader Peter Dutton and the attendant internal political uncertainties that might have arisen if Frydenberg had re-entered the political arena.
The investment banking giant hired Frydenberg as a senior regional adviser for Asia Pacific last year following the Coalition's defeat in the May 2022 federal elections.
According to an internal memo, Frydenberg's role will focus on "further deepening and strengthening client coverage across the Australia and New Zealand region".
He will continue to offer advice on economic and geopolitical issues and work closely with Simon Rothery, Nick Sims and Zac Fletcher to enhance Goldman Sachs (NYSE:GS)' client focus in the region.
Christian Johnston, the bank's former local chairman, retired in late March, opening the door for Frydenberg's appointment. Johnston subsequently assumed an advisory director role at the investment bank.
Good fit
Frydenberg’s latest move has been viewed positively by Paul O'Malley, Commonwealth Bank chairman, who worked with Frydenberg on energy policy.
O'Malley remarked that Goldman Sachs (NYSE:GS) and Frydenberg are a "good fit," praising the former treasurer for his "incredible insight" into both Australian operations and its global positioning.
Frydenberg's political career saw him serve as the Liberal Party's deputy leader between 2018 and 2022. He had also been the energy minister and the assistant treasurer. In a recent statement he mentioned enjoying the private sector life, particularly the time it has allowed him to spend with his family.
The chairman's decision to stick with Goldman Sachs opens a preselection contest for Kooyong, with Amelia Hamer, Roshena Campbell, Georgina Downer, Karyn Sobels, and Caroline Elliott among those expected to vie for the seat.
Frydenberg's dual role at Goldman Sachs seems to preclude immediate plans for a political comeback but leaves the door ajar for a potential future in public life.