Tomorrow Goldman Sachs will tap its next “partnership managing director” class. The bank is expected to pick around 70 new partners, according to the Wall Street Journal. That’s significantly lower than the 110 tapped in 2010.
All that means is that an already exclusive club is even harder to get into — becoming a partner at Goldman is one of the most highly coveted titles on The Street.
Here’s what we know about being a Goldman partner:
- It’s an intense two-year process to pick the partners: Partners are selected every two years in an extremely secretive process called “cross-ruffing” (it comes from the card game bridge). Cross-ruffing is where a candidate is intensely analysed by current partners and other bank employees on whether or not they deserve the partnership. There are no interviews, according to Reuters’ Lauren Tara LaCapra.
- Lloyd Blankfein personally calls you with the news: Reuters reports that either Lloyd Blankfein or Gary Cohn will give the banker a call to let them know they’ve made partner. Those who didn’t make the cut are told the day before.
- It’s supposed to be an incredible feeling: One former partner told eFinancial News, “Don’t tell my wife this, but being made partner was the greatest moment of my life.”
- Being a partner means getting a nice paycheck: One of the biggest benefits of being a partner at Goldman is the lucrative paycheck. Partners make a base salary of $900,000, according to the WSJ.
- They get a large chunk of the bonus pool: In addition to the base salary, about 20% of the bank’s bonus pool is divvied up amongst the 400-plus Goldman partners, according to two former Goldman employees.
- There are other perks, too: Back in 2010, the New York Times’ Susanne Craig reported that partners are given access to investment opportunities not available to the other employees. They would also get tables reserved for them at high end New York restaurants.
- It’s a great way to get to the C-Suite: Being a partner can give someone an “inside track to the top jobs” at the bank, according to the NYTimes.
- Or to a higher position off Wall Street: Not only could being a partner lead to the C-Suite at Goldman, but think of the possibilities off The Street. For example, Hank Paulson, who became partner in 1982 and later served as CEO from 1999 to 2006, went on to become the Treasury Secretary.
- Partners can be ‘de-partnered’: That being said, the bad news is you can be stripped of your partnership in a process known as being “de-partnered,” according to the New York Times. While many who have been de-partnered remain at the firm, most people wouldn’t even know they’ve lost that status and the nice bonus that comes with it, the report said.
We’re definitely looking forward to meeting the new partner class tomorrow.
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