Just because the the biennial Day of The Lucky Bastards has come to Goldman Sachs, doesn’t mean all is well at Goldman. In fact, the firm is trying so hard to cut costs that it has actually shut off about half the the lights in hallways on certain floors, according to Goldman employees.
The 94 freshly minted partners may have just grabbed the gold ring of the finance world at the worst time possible. Shares of Goldman, which these new partner managing directors already hold and will be expected to hold while they remain PMDs, have tumbled to around half of what they were last year.
Traditionally, PMDs get a share of the firm’s revenue. But this year the firm’s revenues are way off earlier years. If Goldman were to pay its partners at the levels it traditionally has, the new partners would likely receive a third to a half of the bonuses that the class of 2006 got. Worse, political pressure to hold down compensation may mean an even leaner payday.
The new partners face lower meal allowances and restrictive town car policies. And now, as we said, these new partners may literally find Goldman a slightly darker place to work. At least they can comfort themselves that they are rising stars even as the sky is falling over Wall Street.
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