Goldman's Trading Unit Nabs Top Share of New Managing DirectorsBy
Firm names 509 to second-highest title, up from 425 in 2015
Proportion of women in this year’s class declines to 24%
Goldman Sachs Group Inc.’s struggling sales and trading division received a bigger share of this year’s promotions, as the firm doubled down on efforts to turn the business around.
Securities division employees secured 130 slots, or almost 26 percent of the 509 managing directors named Wednesday, up from 24 percent two years ago when the Wall Street firm promoted 425 total staff to its second-highest title. Investment banking garnered the second-most promotions this year, with 101, up from 97 in 2015.
The trading business has produced a smaller portion of the firm’s revenue amid a slump in its fixed-income unit. Goldman Sachs named two chief operating officers of the debt unit Tuesday in an effort to reverse the decline, along with hiring in commodities and reaching out to more corporate customers.
The designation, which takes effect Jan. 1, 2018, usually leads to a higher base salary and bonuses that can boost total compensation into the millions of dollars. Managing directors have access to special investment vehicles that can push their rewards even higher. It’s also a stepping stone to the firm’s highest rank of partner.
“Our new managing directors have demonstrated an outstanding commitment to our people, clients and culture during their tenures at the firm,” Chief Executive Officer Lloyd Blankfein said in the statement. “We wish them continued success as they take this important next step in their careers.”
Women made up 24 percent of the class, down from a record 25 percent in 2015. The investment-management division promoted 61 employees, while the technology division named 52 people to be managing directors. The consumer and commercial banking division got eight appointments.
Fifty-seven percent of the group is based in the Americas, while 25 percent is in Europe, the Middle East and Africa, with 16 percent in Asia-Pacific. Four percent of the MDs are based in Bengaluru, formerly known as Bangalore.