Goldman Sachs Group Inc. (GS:US) promoted 266 employees to managing director, up from 261 last year, as the fifth-biggest U.S. bank seeks to reward staff even as it pares expenses.
The annual promotions, which take effect Jan. 1, come one day after New York-based Goldman Sachs named 70 people to its so-called partnership, the fewest since the firm became a public company in 1999. Partners, also called participating managing directors, receive a higher salary than managing directors and share in a special bonus pool.
Goldman Sachs, led by Chief Executive Officer Lloyd C. Blankfein, has undertaken a $1.9 billion expense-reduction effort since the middle of last year as higher capital requirements and weak revenue growth cut return on equity. The company employed 32,600 people at the end of September, 3,100 fewer than at the end of 2010.
The investment bank expects that 7.2 percent of employees will be managing directors at the start of 2013, unchanged from a year earlier, according to Michael DuVally, a Goldman Sachs spokesman. Managing directors typically receive a base salary of $500,000, lower than the $900,000 granted to partners. Both also get bonuses that can boost their total compensation into the millions of dollars.
The number of employees named managing director is down from a record 321 in 2010. About 58 percent of those just promoted are based in the Americas, 26 percent in Europe, Middle East and Africa, and 17 percent in Asia, DuVally said. Last year, about 46 percent were in the Americas, 30 percent in EMEA and 23 percent in Asia.
Women comprise 23 percent of the incoming class of managing directors, up from 19 percent in 2011 and down from 24 percent in 2010. The firm said yesterday that 10 of the 70 new partners, or 14 percent, are women.
Goldman Sachs, which announced today’s promotions in a statement, created the non-partner managing director title in 1996 to recognize top employees who weren’t yet partners. That first class of 87 managing directors included William C. Dudley, now president of the Federal Reserve Bank of New York; Clifford S. Asness, who left in 1998 to start hedge fund AQR Capital Management LLC; and Richard J. Gnodde, who was named co-head of global investment banking at Goldman Sachs in May 2011.
The company names managing directors every year and elects new partners every other year. The following is a list of the new managing directors:
*Employee of Goldman Sachs Gao Hua Securities Company Limited **Employee of Beijing Gao Hua Securities Company Limited
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