Becoming a Partner at Goldman Sachs

oracle

oracle

Read an interesting article about becoming a Partner at Goldman Sachs Investment Banks.

Partners, who get a $600,000 salary, share in a special compensation pool and typically receive most of their yearend bonuses in restricted stock.
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Payscales of CEOs and employees is just unbelievable...

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.
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Last year the firm slashed the ratio of revenue paid to employees to 36 percent, the lowest since the firm went public.
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Had to do something to show something is being done to the public during the GFC.

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.
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And we back this year...and I am sure it's going to keep increasing from here on. $600billion QE2 from Bernanke has to go somewhere I suppose..

And we make a big fuss about our bank CEO's pays.

Read full article here

All these partners are paid so much money so they can think of where and how to create the next bubble and then once created pull all the money out and short the market and make more money!!!

Cheers,
Oracle.
 
Mark Laszczuk said:
What's your point oracle?
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People spend more than a decade working, saving, investing to build some decent equity. And these people make much more money in one year. Makes you wonder where you should be focusing your energy when you are young.

Cheers,
Oracle.
 
You dont need to be in banking to be on that sort of money.

I am in O&G and it is not uncommon to hear of people who are on $2-3,000/day (plus house, phone, transport(car), travel etc etc etc).
Plus this is normally paid in USD. While the AUD is currently at about 1/1, when it is low you can add 25-30% to that figure when it is converted.

It would also appear that the finance industry is much more competitive (I used to be in banking/finance). You can earn more, for less in O&G.

Blacky
 
oracle said:
All these partners are paid so much money so they can think of where and how to create the next bubble and then once created pull all the money out and short the market and make more money!!!

Cheers,
Oracle.
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Do they actually contribute to society or is it just like a large scale scam like the buying shares at a fraction of their worth from old people like Joan had in her post?

Like Macquarie, any deal with their fingers in I would run a mile from. Nothing in it for me.
 
Blacky said:
You dont need to be in banking to be on that sort of money.

I am in O&G and it is not uncommon to hear of people who are on $2-3,000/day (plus house, phone, transport(car), travel etc etc etc).
Plus this is normally paid in USD. While the AUD is currently at about 1/1, when it is low you can add 25-30% to that figure when it is converted.

It would also appear that the finance industry is much more competitive (I used to be in banking/finance). You can earn more, for less in O&G.

Blacky
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Obstetrics & Gynecology ?
 
oracle said:
People spend more than a decade working, saving, investing to build some decent equity. And these people make much more money in one year. Makes you wonder where you should be focusing your energy when you are young.
Click to expand...

Well, the way I see it is that these people didn't get those jobs by sheer chance... I would estimate it would take at least 15-20 yrs of education, experience, dedication, sacrifice and tenacity, to be in that position.

So, if someone applied 15-20yrs of deliberate effort towards a goal, like $600k per year, I am sure they could get there using any number of methods. For example RE.... If someone throws 100% into building a quality portfolio, perhaps they could rival the highly paid executive wage.... Either way, it would not happen through dumb luck or pure chance.

The reality is though, that most of us would fall of the wagon somewhere along the line, if only briefly, and that would deny the end goal, because it is very much like compounding interest. Small constant and targeted career effort over sustained periods of time, will inevitably yield some very good returns. I agree that executive wages are often ridiculously high, but if you were earning that much through Investing (many are!) would anyone begrudge that? Food for thought....
 
I'm not sure if I'm missing the point of this post but I think from the comments I'm of the same mind bent.
Takes one years to chip away and climb up the corporate ladder. Money is an outcome of ROI for years and cost of PD. Combine a good salary with quality investing and its a great combo. However I believe the key to a quality life is liking what you do and doing it well and constantly investing in growing and improving in all areas not just in money. Money is only an outcome not a goal.
 
Indifference said:
Well, the way I see it is that these people didn't get those jobs by sheer chance... I would estimate it would take at least 15-20 yrs of education, experience, dedication, sacrifice and tenacity, to be in that position.
Click to expand...

I work in an industry, and for a company, that pays execs this kind of money. Not only does it takes many years of seriously long hours, hard work, application of brains and high stress levels, but it also requires the human in question to take significant risk. In a job like that, people get sacked simply because 'someone has to go' when something goes wrong. If an underling makes a big screw up, your job can be gone. Job security is very low compared with a regular job.

My goal, career wise, was to get to the level below this. Well paid professionals in my (large) company can make $150-200k pa, working 50 or so hours a week, but with very little personal risk.
 
I work in the financial services industry. Sure, the financial rewards are great but most of the people at the 'big bucks' level make lots of sacrifices to get to the position they are in. Long hours, constantly being on call, stress, hardly ever seeing family, year of study etc.

It is just another form of risk vs reward. Higher risks (lack of job security) and many sacrifices offset with high financial rewards.

The GFC was like a 2 year 'pause' button. No bonuses for a lean period but plenty of money to be made 'fixing' up the pre GFC problems of the past..... it is a self sustaining industry which doesn't really lead to anything tangible.

I'm with VYBerlinaV8 (great model car btw) - would rather keep my sanity and be the $150k-$200k per annum worker with a lot less personal risk.

And yeh, wtf is O&G ? I am guessing Oil & Gas also.
 
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