Next week, several dozen Goldman Sachs employees will receive a prestigious career milestone: being named partners at the renowned Wall Street firm.
Goldman promotes top performers from divisions like trading, investment banking, wealth management, tech, and compliance to partnership roles every two years, typically in early November. The competition is fierce, with only a small fraction of the bank’s 45,000 employees making it into this elite group, which CEO David Solomon has been deliberately shrinking in recent years. Since 2020, Goldman’s partnership pool has fluctuated between roughly 400 and 450 partners.
“It’s the pinnacle of a career,” said Paul Argenti, a former Goldman advisor now on Dartmouth College’s faculty. “That’s where everyone wants to be.”
Historically, Goldman’s partnership represented leaders contributing their own capital to help run the firm. Although the bank is now publicly traded, the partnership title retains considerable influence and carries exclusive perks. Base salaries are around $1 million annually, with bonuses often adding multiples to that figure.
Over the next several months, other firms like Citigroup, Morgan Stanley, and Bank of America will also announce new promotions to their highest ranks, typically titled managing directors.
Business Insider spoke with Argenti and a former Goldman partner to explore what it takes to make partner, the benefits of the role, and what this year’s class might reveal about Goldman’s current priorities.
“Becoming a Goldman partner is a highly selective and intense process,” said Tony Fratto, Goldman’s head of communications, who emphasized the confidentiality of the decision-making.
The Process
The partner selection process, known as “crossruffing,” involves months of vetting, with current partners interviewing a wide array of colleagues to assess candidates’ personalities and track records. Partners from different divisions than the nominee are assigned to reduce potential bias. One former partner described a senior official’s comment during their own selection: “I know more about you than you know about you. I’ve talked to 25 people about you for 50 hours.”
Candidates with strong support advance to a partnership committee for further review. “There’s always a battle over the final few spots,” the former partner noted. “Many deserving, qualified people don’t make it.”
Perks and Influence
Goldman partners wield significant influence within the bank, with the ability to sway CEO decisions and contribute to policy-making. “Their impact on strategy and decision-making is profound,” Argenti said, noting that the CEO typically needs partner support to operate effectively.
Partners benefit from a separate bonus pool, fee-free access to investment funds, and can influence Goldman’s philanthropic spending through the Goldman Sachs Gives fund, which has granted $2.5 billion to over 10,000 nonprofits. Additionally, they have access to a dedicated wealth-management desk to handle their finances.
Another key perk is the reputation associated with the partnership title. “People infer characteristics like integrity and intelligence based solely on the fact you are, or were, a Goldman partner,” said a former partner quoted in Financial News.
Reading the Signals
This year’s partner class may offer insights into Goldman’s strategic focus. Industry experts anticipate a strong representation from the investment banking division, given a recent boost in dealmaking that drove a 45% profit increase last quarter, with investment banking fees up 24% from last year.
“You promote the high performers,” Argenti noted, adding that the class composition often reflects the bank’s current priorities.
Since becoming CEO in 2018, Solomon has worked to make the partnership more exclusive by reducing its size. The last partner class included 80 new promotions, a slight increase from 60 in 2020.
This year, Goldman’s diversity initiatives will also be under scrutiny. Earlier in 2023, Goldman pledged to improve diversity in response to criticism about the advancement of female partners. This year’s class could reveal how those efforts have evolved under Solomon’s leadership.