Goldman Sachs just promoted 425 people to managing director and the list of people chosen is very telling.
About 30% of the new managing directors are millennials, according to a person familiar with the matter — and a huge chunk of them have been with Goldman their entire careers.
Around 40% of the class were hired at the entry level as analysts, and 20% started out as summer interns, according to the firm.
It’s further proof of the firm’s efforts to hold onto its own. Goldman Sachs the graduates it is hiring to spend a career at the bank, and not just a couple of years.
Last week, the Wall Street titan announced an overhaul to the way it promotes and rewards investment bankers at the junior level.
‘Build their careers here’
Goldman’s cohead of investment banking, David Solomon, summed up those initiatives neatly:
“Everything that we’re doing is to try to give us the best opportunity to develop the best of those people and have a subset of them want to build their careers here,” he said. “Not all of them, but a subset of them.”
The firm will start promoting top investment-banking analysts to associates after only two years at the firm.
That means, among other things, that they will get a pay raise sooner than they normally would. (Across Wall Street, associates earn about $US63,000 more than analysts, on average.)
It also means they are on a faster track to become vice presidents, and eventually managing directors.
Another reward is a formal “mobility program” the firm is introducing for junior bankers in their third year. After completing two years in one assignment, analysts — some of whom are promoted to associates — will go on rotational assignment for another full year.
A third initiative will see changes in the type of work that Goldman’s junior bankers are doing. It is introducing new technological platforms to pick up some of the grunt work and enable analysts to focus on more value-add work.
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