The cost-cutting at Goldman Sachs is now reaching the top ranks of the firm.
According to Dealbook an unusually high number of partner retirements have been announced internally at the Wall Street bank in recent weeks, according to people who were briefed on the matter but are not authorized to speak on the record. More than a dozen partners have announced plans to leave recently, a much higher number than in the same period in past years.
The executives leaving include some well-known names on Wall Street, like Kevin Kennedy and Jeff Resnick. Mr. Kennedy is a member of the firm’s executive committee and recently ran its Latin American operations. Mr. Resnick is head of commodity trading.
To ensure that the partnership retains its cachet and remains as lucrative as in years past, there is annual winnowing of partnerships. But this year, cost-cutting is taking a greater toll than usual on the partnership. In recent months, as revenue at Goldman has dipped after weak trading volumes, the firm has been slashing costs anywhere it can. It has successfully wrung out more than $1 billion in noncompensation costs from its operations, and it has also laid people off. Partners are typically the highest-paid employees at the firm, so reducing the number of partners will result in significant cost savings. Adding to the pressure on the partnership is the fact Goldman itself is shrinking...
Read more at http://dealbook.nytimes.com/2011/11/14/a-wave-of-partner-retirements-at-goldman/?hp
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