Goldman Sachs is promotion-happy
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Doug Krizner: On Wall Street, the title of managing director is coveted by every young upstart. It's like making executive vice president in the corporate world.
There's word Goldman Sachs has just promoted a record number to managing director, at a time when most investment banks are struggling. Marketplace's Amy Scott reports.
Amy Scott: Goldman Sachs made more than $2.8 billion last quarter, while troubles in the credit markets battered its rivals. So it seemed like almost a slap in the face when Goldman announced it's promoted a record 299 people to managing director. That means a total of about 1 in 17 staffers now has the title.
Laura Lofaro: They're able to promote a lot of people, because this was the year that they are the most successful bank on Wall Street.
Laura Lofaro recruits talent for investment banks. She says at Goldman Sachs, "managing director" is different than at other banks. These managers can work in the back office or in human resources. The title doesn't guarantee the really big bucks.
Lofaro: The title that's the true brass ring is the partner at Goldman Sachs.
Just one in a hundred belong to that club. The base salary is $600,000, not including bonuses. In the first nine months of the year, Goldman set aside $17 billion for salaries, benefits and bonuses. That's more than the whole of last year.
In New York, I'm Amy Scott for Marketplace.