Being named partner at Goldman Sachs means a $900,000 salary, before bonuses. It also means you’re on track to the highest circles of the financial and corporate elite.
Lucas Jackson / Reuters / Reuters
This morning, a select few Goldman Sachs employees will get one of the most important phone calls of their lives. The firm selects a new batch of partners once every two years, and today is they day the new ones find out.
For those who are tapped, it's an affirmation that their career at Goldman is still on the way up. It means a $900,000 base salary, before bonuses come into play, and the prospects of further advancement at the company and beyond. The people who run Goldman Sachs at its highest levels often end up running the world, taking on top jobs in government, corporate boards and at the top tiers of international finance.
The process and rank behind Goldman's partnerships is a bit of a anachronism on Wall Street. Until its 1999 IPO, the investment bank was a private firm where partners really were partners in the classical sense of the term: They contributed the capital needed to operate, and then they reaped the profits.
After the company went public, its structure changed. But it retained a version of the old partnership process, where a select group of employees would get higher pay, access to a special bonus pool, access to some investment funds, and the expectations of bigger and better things at Goldman.
Goldman has 32,600 employees and about 400 partners. In 2012, 70 employees got bumped up to partner, while 2010 it was 110, and 2008, 94 new partners. The selection process, which started this summer, is overseen by the Partnership Selection Committee, run by Gary Cohn, the firm's president, Michael Sherwood, a vice chairman who is co-head of its international business, and Edith Cooper, the executive in charge of hiring and employment. New managing directors -- the role one rung beneath partner -- will get picked next year. The Wall Street Journal, citing people familiar with the matter, said "no more than 70" employees would get picked.
Ueslei Marcelino / Reuters / Reuters
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