The cull that usually accompanies Goldman Sachs’ biennial selection of new partners promises to be more brutal than usual this year as lower-than-expected turnover of top employees could prompt the bank to oust dozens of its 400 existing partners.
The selection process provides Goldman the opportunity to change the mix of top executives at a time when its business model has been called into question by regulatory problems, a backlash against its trading activities and plans to introduce new financial regulations.
The choice of partners is closely watched both inside and outside Goldman because those joining the highest rank in the bank’s hierarchy command high pay packages and significant influence within the bank. This year the market will be watching to see whether Lloyd Blankfein, chief executive and a former trader, promotes more investment bankers in an effort to shift Goldman away from the trading businesses that caused its recent woes.