It’s that time again. Every two years Goldman Sachs elevates a fresh crop of bankers into the upper echelons of Wall Street when it names its new partners. Last time around, Goldman appointed a record 115 partners. But that was 2006, at the height of the boom. This time around, the number of new partners is expected to be much smaller.
From the Telegraph:
A four-month selection process culminates as early as Tuesday with an email circulated within Goldman naming the new partner managing directors and letting the present incumbents know whether they have kept the title.
The selection process is shrouded in secrecy but bankers have to nominated by existing partners to be considered and are discouraged from openly campaigning for the position.
The process developed to vet candidates – known as “cross-ruffing” – sees partners review bankers from other departments. The partner has to then decide whether to recommend the candidate’s appointment. Fewer than half those initially nominated make the grade and that ratio is expected to be markedly smaller this year.
Successful nominees will receive a telephone call from chief executive Lloyd Blankfein or co-presidents John Winkelried and Gary Cohn to tell them the welcome news.
Partner managing directors receive a basic salary of $600,000 (£377,000) but in the past each could expect to take home multiples of that as their share of the bank’s bonus pool. Last year, that total bonus pool stood at $16.9bn, meaning $3.38bn for the partners pot, equivalent to $11.2m each.