Senior management at Goldman Sachs (GS) is mulling over whether it should reduce the number of partner positions at the bank.
In a detailed report by the Financial Times, under Goldman Sachs chief executive David Solomon, his senior management are looking into the hierarchy of the business and whether there are the level of partner is too saturated — there are too many people.
One uncited source by the FT said: “We are trying to make the partnership as special as it can possibly be. To make it special, it’s got to feel like it’s a high-quality group of people, all of whom everybody believes deserves to be in there, and that they add real value to the team. There has been some creep over time.”
A source told Yahoo Finance UK that Goldman senior management were reviewing partner positions.
Goldman currently has 450 partners — above the 221 partners Goldman had in 1999 — which earn an average of $950,000 (£775,111) each.
Another unnamed source from the FT said a cull of partners can be seen as a “purge” and the process can be “brutal” as “partners don’t retire.” Fewer partners also means fewer bonuses to pay out.
But what the purge does mean is that positions can be opened up to younger staff that are looking to step up and, in turn, allow the bank to retain top talent for longer.
Goldman Sachs declined to comment on the reports.