Sources told Charlie Gasparino of FOX Business that Goldman Sachs is looking to contract in areas that are being stretched, such as SPACs.
Nothing else is sacred at Goldman Sachs, maybe not even a Chick-fil-A dinner.
FOX Business learned that in 2019, first-year bank associates vigorously debated ownership of eating the popular fast-food chicken sandwiches at a planned dinner at the company’s Manhattan headquarters.
The reason for the objections: the fundamentalist Christian views of the network’s CEO, Dan Cathy, who in 2012 spoke out against same-sex marriage.
In the midst of a negative reaction, Cathy clarified her remarks that these were her personal beliefs and that he and the company respect all of its customers. Even so, there was a heated debate among members, some defending the preference of the snack and others raising objections, according to people with direct knowledge of the subject.
Finally, Goldman’s management intervened, these people say. The verdict: Eating Chick-fil-A would be allowed, according to people with direct knowledge of the subject.
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A Goldman spokesman said: “I checked with five people in the banking industry, and no one heard of a Chick-fil-A incident,” adding, “I cannot guarantee (or confirm) that it didn’t happen, but the idea of that there is a policy that requires senior approval is absurd. “
The drama Chick-fil-A, others from Goldman told FOX Business, is part of a broader cultural revolution at the prestigious white-shoe investment bank. It is pitting a new generation of Generation Y and Generation Z employees against company veterans who want to uphold Goldman’s more conservative and sometimes oppressive corporate work culture.
In the past few months, this breach has spread to leaked internal documents, in which first-year associates have complained about their 100-hour workweeks causing illness, sleep deprivation and other physical illnesses.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP, INC. | 331.77 | -7.56 | -2.23% |
Many Goldman veterans are scoffing at all complaints and attributing them to age-old anguish over a long tradition that has made Goldman the world’s leading investment bank.
Caught in the crossfire is Goldman CEO David Solomon, who has become an object of contempt among many younger employees for supporting long hours as a rite of passage for those who wish to succeed at the bank.
“He’s the worst,” said a millennial who works at the company about Solomon.
Last month, Solomon was criticized by some Goldman employees for using the company’s private jet so he could work at his Bahamas mansion while demanding an end to the work at home pandemic.
Solomon believes that employees are more productive working in the office. As evidence, he cited the example of a young Goldman employee who, instead of engaging in business, was having lunch at a Hamptons restaurant during office hours and even had the courage to introduce himself to the Goldman CEO sitting at a nearby restaurant table.
But Goldman associates say that Solomon must practice what he preaches. He also spends a lot of time working in the Bahamas and the Hamptons, where he indulges in one of his favorite hobbies as a guest DJ under the pseudonym “DJ D-Sol”.
“It’s a generational thing and nothing more,” mocked a former Goldman partner who spoke on condition of anonymity. “These children were educated in a different way and attended schools that gave themselves up to their supposed victim status.”
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Investors, for their part, are rooting for Solomon. Goldman’s shares have risen more than 140% over the past year – double the S&P 500. Business is said to be growing within Goldman’s acclaimed investment banking department, which is one of the reasons junior employees are working so many hours.
Company executives are signaling investors to expect an explosion in the first quarter of 2021, when Goldman reports earnings on April 14, FOX Business learns.
Solomon signaled that the first quarter will be strong in a video memo released over the weekend. He told Goldman’s 38,000 employees that they can expect to continue working long shifts as the company makes record profits.
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“The good news is that volumes have increased because we have the opportunity to work with our customers on so many interesting things at the moment,” he said, according to a transcript confirmed by FOX Business.
FOX Business has also learned that Solomon is not completely ignoring criticism from the overworked – and some would say the underpaid masses. First-year members earn about $ 150 a year, while Solomon earned $ 17.5 million in 2020.
The company is planning a wave of hiring junior bankers to deal with the flow of new business that has left certain teams limited and forced some employees to work 100 hours a week and on weekends, which Solomon is trying to reduce.
Sources say the company will strengthen the teams that help subscribe to Special Purpose Acquisition Companies (SPACs), which have seen tremendous growth this year as a new and less regulated way to go public.
The company will also seek to expand the teams that work in its leading banking group in Technology, Media and Telecommunications to reduce workloads. New hires are expected to begin in April, these people said.
“The banking sector is buzzing,” said a senior Goldman executive. “But help is on the way.”