Goldman Sachs (GS, Financial) is preparing to promote the largest number of partners since David Solomon became CEO. Insiders suggest that this week's promotions will surpass the 80 individuals promoted in 2022. The firm promotes a new group of executives to partner status every two years, with less than 1% of employees reaching this elite rank. A Goldman Sachs spokesperson declined to comment.
This expansion reflects a shift in Solomon's initial strategy. After becoming CEO in October 2018, Solomon aimed to reduce the number of partners. One month into his tenure, Goldman Sachs promoted 69 new partners, and by 2020, only 60 were added, the lowest number since its 1999 IPO. However, the firm has since been growing its partner ranks to retain top executives who might leave for better opportunities elsewhere. This is especially crucial as Goldman Sachs has faced performance challenges, particularly in its investment banking division, increasing pressure on leadership to improve employee rewards.
The partner level still lacks gender equality. When the overall numbers are small, bringing in diverse new hires doesn't significantly improve this issue. Early this year, women comprised less than one-fifth of the partners, highlighting a continued male dominance at this level.
