Goldman Sachs VP Promotions: A Closer Look
Goldman Sachs recently announced the promotion of a new class of vice presidents (VPs) and executive directors (EDs). This promotion comes after a rigorous selection process that seems to have become more challenging than ever before.
A Decrease in Promotions
According to a graphic on Goldman’s own website, the firm promoted 1,481 VPs and EDs this year. This number is significantly lower than the 1,917 promotions last year and the 2,200 promotions in 2021. This decline in promotions suggests that attaining the VP title at Goldman Sachs has become increasingly difficult.
Despite an increase in total headcount at the firm by 7,800 people over the same period, the number of promotions has decreased, indicating a more selective promotion process.
Reasons Behind the Decrease
The Wall Street Journal reported earlier this year that Goldman Sachs CEO David Solomon felt the firm had hired too many VPs relative to its overall headcount. As a result, VPs were targeted in a round of job cuts around May.
With fewer VPs being promoted, it is likely that more individuals are either remaining at the associate level or facing dismissal. Additionally, executive directors, a senior VP position primarily found in Europe, are also part of this year’s promotion class.
Shift in Hiring Patterns
Goldman Sachs noted that 61% of the new VP/ED class joined the firm as experienced hires and were not trained by the company as graduates. This percentage is slightly lower than the 64% of experienced hires in 2001.
According to data from H1B visa applicants in the US, VPs at Goldman Sachs can expect salaries of around $300,000. The firm declined to comment on the smaller promotion class, which is believed to be a cost-cutting measure.
Managing Director Promotions
Earlier this month, Goldman Sachs promoted 638 managing directors, a slight decrease from the 643 promotions in 2021. This promotion trend indicates a more conservative approach to elevating employees to higher ranks within the firm.
Overall, the recent VP and ED promotions at Goldman Sachs reflect a shift towards a more selective and strategic promotion process, aligning with the firm’s goals and market conditions.
Source: Here
