Goldman Sachs Plans to Squeeze Size of New Class of Partners

(Bloomberg) -- Goldman Sachs Group Inc.’s new class of partners may be the smallest since the firm went public in 1999.

The number of executives rising to the firm’s top rank could drop below 60, down from 84 as recently as 2016, according to a person with knowledge of the matter. Chief Executive Officer David Solomon has previously said he’s trying to limit the partnership ranks to restore the exclusivity of the group.

The selection process involves a rigorous back-and-forth among senior partners across divisions, and the promotions are typically announced in November. Prominent partner departures and some forced exits could help Solomon tighten the ranks to a little more than 400 executives, or roughly one for every 100 employees.

A Goldman representative declined to comment. The final tally could still change amid intense jockeying in the final weeks of the process. The Wall Street Journal reported on the deliberations earlier Tuesday.

The new partners will also be eligible to get a cut of profits from Goldman’s investment funds that are open to employees, another person said. That would restore a perk that was once available to the partners but closed off more than a decade ago.

Solomon had already tightened the reins in his first selection process as CEO in 2018, elevating just 69 partners when he was one month into his tenure. The partner title is a throwback to before the firm’s initial public offering. Most other public companies have abandoned the partnership structure.

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