Today is the day. Goldman Sachs is expected to name its new partnership managing directors. If this goes the way it usually does, Goldman will send out a memo naming the new PMDs. (Hey, send us a copy!)
Partnership managing directors, or PMDs, get an increased base salary, the opportunity to invest in Goldman deals, a discount on Goldman stock purchases and a share in the partner compensation pool, among other perks. .
Last year, the PMDs received billions in bonuses, about 20 per cent of total compensation paid to some 25,000 employees.
There’s really no equivalent to anything else like a Goldman partnership in the modern business world. In this age of the credit crunch, it seems almost an anachronism. It gets compared to getting “made” by the mafia. But that seriously underestimates what it means to be a Goldman partner. It’s more like being knighted on the battlefield by King Arthur, only this time the battlefield is the global financial market.
Many wonder whether Goldman’s partnership pool will survive its change of status into a bank holding company regulated by the Federal Reserve. If not, the class of 2008 would bear the additional honorific of being the Last Partners Goldman ever made.
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