Goldman Sachs Group Inc. selected 110 people to become partners, up from 94 in the last round two years ago, as Wall Street rebounds from the financial crisis.
Among the employees named this year were David Kostin, chief U.S. equity strategist, Andre Laport Ribeiro, the Sao Paolo-based head of Latin America equities, and Colin Coleman, who runs the firm’s South Africa business, according to an internal memo (see full list below) obtained by Bloomberg News. The appointments take effect Jan. 1. David Wells, a spokesman for Goldman Sachs in New York, declined to comment.
The elections are a vestige of the firm’s days as the last major investment bank partnership, before the company ended 130 years of private ownership with its 1999 initial public offering. Partners, who get a $600,000 salary, share in a special compensation pool and typically receive most of their yearend bonuses in restricted stock.
“There are no partners in a corporation, this is an honorary designation that enables people in it to participate in a bonus pool,” said Roy Smith, a finance professor at New York University’s Stern School of Business who was a partner at Goldman Sachs before it went public. “This is a promotion for most of them in terms of how much they get paid.”
Goldman Sachs had 443 partners after the 2008 class was elected and 402 after the 2006 round. Wells wouldn’t say how many partners there will be after the latest round of promotions. The New York-based company employed 35,400 people at the end of September.
New partners included Donald J. Casturo from the commodities unit, Dina H. Powell, the firm’s head of corporate engagement, London-based credit trader Wayne M. Leslie, and Peeyush Misra, a former Bear Stearns Cos. mortgage trader. Massimo Della Ragione, a Milan-based merger specialist, also made the cut, as did China portfolio strategist Christopher Eoyang, Shin Horie, the Tokyo-based head of Japan investment research, and Jonathan M. Penkin, co-head of equity capital markets in Asia.
Wells wouldn’t say how many of the new partners are women. The firm was sued in September by three women, former employees, who alleged that they faced discrimination in pay and fewer opportunities for promotion than men. Goldman Sachs has called the suit without merit.
Goldman Sachs’s profit through the first nine months of 2010 dropped 29 percent to $5.97 billion from the same period last year. The company has set aside $13.1 billion for compensation and benefits this year, 21 percent less than at the same time in 2009. The stock dropped 21 cents to $164.89 as of 4:15 p.m. in New York Stock Exchange composite trading, and is down 2.3 percent this year.
Goldman Sachs set a Wall Street pay record in 2007 when it doled out more than $20 billion, or 44 percent of revenue, to 30,522 employees at the time. Chairman and Chief Executive Officer Lloyd Blankfein, 56, was awarded a $67.9 million bonus that year, the highest ever for a securities industry CEO.
Since the 2008 financial crisis led governments around the world to supply taxpayer money to keep banks afloat, Goldman Sachs has cut compensation. Last year the firm slashed the ratio of revenue paid to employees to 36 percent, the lowest since the firm went public.
This year Goldman Sachs has set aside 43 percent of revenue to pay employees, or 45 percent when the cost of a U.K. tax on bonuses is included. In a presentation yesterday at a New York conference hosted by Bank of America Corp., Blankfein said the firm’s decisions on compensation depend on “what the market requires us to do in most cases, and I think that that is a bit of an evolving picture.”
Before the financial crisis, Goldman Sachs published its list of partners in a press release. The firm has since stopped making the list public.
“I can’t imagine why they want to call attention to what is in essence not an appointment of managers but a transfer of people into a different compensation category,” Smith said.
The following is a list of the 2010 partner class at Goldman Sachs:
Chuck Adams Nick S. Advani William D. Anderson Scott B. Barringer Gareth W. Bater Tracey E. Benford Avanish R. Bhavsar V. Bunty Bohra Stefan R. Bollinger Robert Boroujerdi Alison L. Bott Sally A. Boyle Christoph Brand Torrey J. Browder Philippe L. Camu Donald J. Casturo Chia-Lin Chang Steven N. Cho David T. Y. Chou Thalia Chryssikou Colin Coleman Kenneth W. Coquillette Cyril Cottu Massimo Della Ragione Michele I. Docharty David P. Eisman Harry Eliades Christopher Eoyang Samuel W. Finkelstein Matthew R. Gibson Michelle Gill Michael J. Grimaldi Dylan S. Halterlein Elizabeth M. Hammack Dane E. Holmes Ning Hong* Shin Horie Stephanie Hui Eric S. Jordan Vijay M. Karnani Christopher M. Keogh Peter Kimpel Kelvin Koh Adam M. Korn David Kostin Joerg H. Kukies Andre Laport Ribeiro Geoffery Lee Laurent Lellouche Eugene H. Leouzon Wayne M. Leslie John R. Levene Leland Lim Lindsay P. LoBue David B. Ludwig Raghav Maliah Matthew F. Mallgrave Alain Marcus Robert A. Mass Matthew B. McClure Patrick S. McClymont Dermot W. McDonogh Richard P. McNeil Avinash Mehrotra Jonathan M. Meltzer Bruce H. Mendelsohn Peeyush Misra Bryan P. Mix Atosa Moini Ricardo Mora Ezra V. Nahum Nigel M. O’Sullivan Nirubhan Pathmanabhan Jonathan M. Penkin Michelle H. Pinggera Dhruv Piplani Dina H. Powell Sumit Rajpal Ganesh Ramani James H. Reynolds Stuart Riley Karl J. Robijns Craig Russell Luke A. Sarsfield III Stephen B. Scobie John C. Shaffer Konstantin A. Shakhnovich Daniel M. Shefter Michael L. Simpson Mark R. Sorrell J. Richard Suth Jasper Tans Patrick Tassin de Nonneville Megan M. Taylor Teresa Teague Pawan Tewari Klaus B. Toft Kenro Tsutsumi Richard Tufft Toshihiko Umetani Jonathan R. Vanica Philip J. Venables Simone Verri Daniel Wainstein Kevin A. Walker Robert P. Wall David D. Wildermuth Chang-Po Yang* Alan Zhang Xing Zhang** *Employee of Goldman Sachs Gao Hua Securities Company Limited **Employee of Beijing Gao Hua Securities Limited