How To Become A Partner At Goldman Sachs (GS)

Becoming a partner at Goldman Sachs GS is the Wall Street equivalent of hitting the lottery. Once you're a partner, you're basically set for life. Or so you thought. This report from the NY Times explains the process of becoming a partner. Most people assume that once you become a partner you're there to stay until you leave the firm either through another job or retirement. However, a partnership can be taken away just as easily as it is bestowed upon you. This year, there are expected to be as many as 100 parternships bestowed upon members of the firm, with as many as 60 being taken away. The reasoning behind this is that Goldman does not want its up and coming employees to feel as if its less of a motivational tool if there are too many partners. It there are too many partners, a logjam is formed, and that's not something Goldman wants. If you lose your partnership, it is never talked about with people at the firm, although your bonus does the talking. Someone who has been "de-partnered", will keep their $200,000 base salary, but their bonus will take a huge hit, potentially costing millions of dollars. The firm chooses hundreds of potential candidates, but ultimately whittles it down through a series of attrition. Employees don't know they are up for partnerships, and are never told why they didn't make the cut. They are only told the good news, not the bad. To become a partner at Goldman is the good life. Partners are offered investment opportunities not offered to other employees there, in addition to being the highest paid employees. They are offered choice offices, and even have tables booked for them at trendy New York restaurants. On the other hand, partners take most of the brunt in down times. In 2008, partners did not receive a bonus, due to the financial crisis. It's one of Wall Street's most secret interviews, and you don't even know if you're up for the job or not. If you do make partner at Goldman Sachs, the entire world is yours on a silver platter. Just don't screw it up.