Lurking around the water coolers at Goldman Sachs, there is a hotter-then-hot topic. The current year has so far been a year of record profits for the bank. For the lucky few who will ascend into its partnership in October, this means spoils almost beyond the dreams of even Goldman bankers.
Goldman's partner elections happen once every two years. If you are one of its 24,000 employees around the world who join this select group of 300, you gain Olympian status within the bank. You also get to share in the partner's bonus pool. "It is a super promotion. If you are an ordinary managing director it is like being invited to the feast but not allowed to eat. If you become a partner managing director it is like joining the officer class," said someone close to Goldman.
Not surprisingly, there is intense interest internally at the moment about who will make it this year, and gossip among rival bankers about who will "retire" from the partner pool. To ensure the group is not diluted, on average 75 partners leave after each election, to be replaced by fresh blood. Some go to other jobs, others because Goldman believes they have outlived their usefulness. The number of partners to total employees is as tight it has been for years.
Goldman's decision to keep its partnership - even though it became a public company seven years ago - is one of the most distinctive things about it compared to its main rivals, and is widely seen as the reason for its uniquely strong corporate culture.
Goldman itself emphasises there is no formal vote on candidates, but instead extensive discussions to reach a consensus. Senior people from other divisions also check the process under a procedure insiders call "butch cross roughing". Hmmm, sounds like something the boys in the back room will have.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/08/09/ccgold09.xml
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