Goldman Sachs Group (GS, Financial) is reportedly planning a significant number of partner promotions, the highest since David Solomon became CEO. This marks a change in Solomon's governance approach, as he initially aimed to shrink the partner group to enhance the exclusivity and incentive value of the title.
Unlike other Wall Street firms, Goldman Sachs has retained its pre-IPO partnership tradition, considering the partner rank as its most prestigious position. Currently, the firm has slightly over 400 partners, less than 1% of its total workforce. Goldman Sachs holds partner promotions biennially, with 80 employees elevated in 2022, the most during Solomon's tenure.
This year's surge in promotions suggests a shift in Solomon's strategy, following his earlier emphasis on a smaller partner group. During his first month as CEO, the bank appointed 69 new partners, but only 60 in 2020, marking the lowest number since Goldman Sachs went public in 1999.
Goldman Sachs has been expanding its partner ranks to compensate for losses due to executives departing the banking sector for higher pay opportunities elsewhere. The bank also faces challenges concerning gender diversity at senior levels, with women making up less than one-fifth of partners at the beginning of the year. Despite efforts to diversify, a smaller partner group has not resolved this imbalance.
The largest partner promotion in Goldman Sachs's history occurred in 2006, with 115 individuals elevated to partner status.
