Goldman Sachs ‘to name fewer than 60 partners’ in 2020
Goldman Sachs will reportedly name no more than 60 partners this year, but partners will be given more financial perks as the investment banking giant seeks to make its partnership more exclusive.
The bank’s new class of partners, due to be promoted next month, is likely to be Goldman’s smallest cohort since the 1990s, the Wall Street Journal reported.
Goldman Sachs partners own a stake in the lender and are its most elite employees. The bank currently has around 500 partners, but their ranks have been shrinking under chief executive David Solomon.
Solomon, who has led the bank since 2018, has moved to make Goldman less top-heavy and to increase the exclusivity of the partnership. In 2019, some 69 new partners were appointed.
Starting this year, partners will receive carried interest – a portion of future profits taxed at low rates – in four of Goldman’s private investment funds, according to the WSJ.
Such a move would restore a valuable financial perk that has not been available to partners in over a decade.
The bank will lend partners up to $500,000 (£385,000) to increase their personal investment, the paper reported.
Morning Wire has reached out to Goldman Sachs for comment.