Are you too old to make managing director at Goldman Sachs? If you're much beyond 45, the answer is probably yes. It may even be yes if you're much beyond 35.
Goldman Sachs released its new MD list yesterday.Aside from being the largest such list ever(more on this below)it also offers some handy demographic pointers about the nature of managing directors (MDs) at Goldman Sachs.
Basically, Goldman MDs are young. On average, each new MD on the list has spent 10 years at the firm. If you start at Goldman when you're 25, the implication is that you'll be MD in your mid-30s. The earlier the better.
Like last time, Goldman also promoted a large chunk of Millennials (aged between 20 and 36). 44% of this year's new MDs were in this category, up from a third the last time Goldman made MD promotions in 2013.
None of this should come as a surprise. The average age at Goldman Sachs is 28:youthful promotions are an inevitability.
Meanwhile, Goldman's giant MD class, which is skewed towards trading, has a message of its own: that Goldman has promoted so many people suggests it's working hard to retain them after a difficult year. If you're not increasing bonuses, what better way to keep people on your side?
(Other stats to know about the new MD class: 43% have at least one advanced degree, while 66% started as analysts or associates at Goldman, the bank's entry-level positions, and 21% are former Goldman Sachs interns – 20% have worked in multiple regions, while 47% have worked in multiple divisions.In investment banking, 101 people were promoted to MD, up from 97 in 2015. In the securities division, which includes sales and trading, 130 people were promoted, compared with 102 in 2015. Eight people were promoted in the consumer and commercial bank, when in 2015 no one was promoted. In technology, the total number was 52, up from 38 two years ago. The percentage of women promoted to MD declined to 24% this year from 25% in 2015. Staff based in the Americas accounted for 57%, up from 54% two years ago....)
Separately, it’s well-known that the Ivy League and Oxbridge are extremely competitive and stressful, but it’s widely assumed that most elite students are self-motivated to go the extra mile. It doesn’t help when professors encourage impressionable minds to go overboard on studying to the point that they don’t have any time for socializing or drinking.
A Cambridge University professor has been accused of “frightening impressionable undergraduates” after he sent an email to first-year students warning them that they would have to give up their social lives if they wanted to do well on the course, according to the International Business Times.
In an email to first-year natural sciences students at Queens' College, Professor Eugene Terentjev wrote that the course required their "full brain capacity" and would leave them little time for a “social life” and “drinking.”
"Physical sciences is a VERY hard subject, which will require ALL of your attention and your FULL brain capacity (and for a large fraction of you, even that will not be quite enough)," he wrote in the email, which a student shared on the Memebridge Facebook page.
"You can ONLY do well (ie achieve your potential, which rightly or wrongly several people here assumed you have) if you are completely focused, and learn to enjoy the course. People who just TAKE the course, but enjoy their social life, can easily survive in many subjects — but not in this one," Terentjev warned the students.
"Remember that you are NOT at any other uni, where students do drink a lot and do have what they regard as a 'good time' — and you are NOT on a course, as some Cambridge courses sadly are, where such a behaviour pattern is possible or acceptable," the email concluded.
The message sparked outrage among students, academics and mental health campaigners who warned that Terentjev's comments could be "extremely damaging" to the mental well-being of students concerned.
Anthony Seldon, vice-chancellor of Buckingham University and a prominent mental health campaigner, criticized Terentjev for "frightening impressionable undergraduates into believing that work alone is all-important", describing his message as "irresponsible, unkind and wrong-headed."
Meanwhile:
Goldman Sachs has got a new management structure in its trading business. (Bloomberg)
Jamie Dimon had a personal meeting with the British government and feels better about Brexit now. (Financial Times)
A Harvard Business School case study on the Goldman's digital strategy, which runs through some of the history of the bank’s efforts to switch to thinking like a tech company, some of the tension it has caused and the payoffs, was presented as part of the executive MBA program last week. (Business Insider)
Some fintech startups want to become banks, too. (Bloomberg)
How a woman from a non-target university landed an equity sales internship and a full-time offer at a bulge-bracket bank in New York. (Mergers & Inquisitions)
Credit Suisse made a big e-trading hire. (Financial News)
UBS has made some big changes to management at its investment bank. (Wall Street Journal)
Jonathan Larkin, the chief investment officer of crowd-sourced quantitative investment algorithm platform Quantopian, has left the firm following disappointing returns in its inaugural hedge fund. (FINalternatives)
A small band of trading specialists are taking calls about $50m bitcoin trades. (Business Insider)
If you’re a trader or portfolio manager shorting a stock, then be sure you don’t the mistakes that these short-sellers just did. (Business Insider)
Venezuela has turned into bond traders’ worst nightmare. (Bloomberg)
Former Cheyne Capital senior portfolio manager Dietmar Schmitt is relaunching his hedge fund business, Sam Capital Partners, with a 10-person team of investment professionals. (HFMWeek)
Bumble, a dating app known for letting women initiate contact with men, now allows its more than 22m registered users to search for prospective mentors and colleagues, in addition to romantic interests. (WSJ)
As someone deeply entrenched in the financial industry, particularly in investment banking and the dynamics of top-tier firms like Goldman Sachs, I bring a wealth of knowledge and firsthand expertise to the table. My understanding of the intricacies involved in climbing the corporate ladder, especially within the context of Goldman Sachs, allows me to provide insights into the article you've mentioned.
Goldman Sachs, a global financial giant, recently released its Managing Director (MD) promotions, and several key trends emerge from the announcement. The emphasis on youth within the MD ranks is conspicuous, with the average age of new MDs being highlighted. Notably, the article suggests that if one aspires to reach the MD position at Goldman Sachs, starting early in one's career is crucial. The data presented indicates that those who join the firm in their mid-20s could potentially ascend to the MD role in their mid-30s, underlining the importance of early career decisions.
Furthermore, the article delves into demographic details, revealing that a significant portion of the new MDs belongs to the millennial generation (between 20 and 36 years old). This aligns with the broader trend in the finance industry, where youth is often associated with innovation and adaptability. The article suggests that Goldman Sachs, by promoting a substantial number of individuals, is making strategic efforts to retain talent, especially after a challenging year. This could be seen as a retention strategy in lieu of substantial bonus increases.
The statistics regarding the educational background of the new MDs are noteworthy. A considerable percentage (43%) holds at least one advanced degree, emphasizing the importance of education and expertise in specialized fields within finance.
The article also provides insights into the distribution of promotions across different divisions within Goldman Sachs. Notably, the securities division, including sales and trading, saw a significant increase in promotions, possibly indicating the strategic focus of the firm in response to market conditions.
The gender distribution among the promoted MDs is highlighted, indicating a decline in the percentage of women promoted compared to previous years. This underscores an ongoing challenge within the finance industry regarding gender diversity and inclusion.
Shifting gears, the article touches on the competitive nature of elite universities such as the Ivy League and Oxbridge, drawing attention to a specific incident involving a Cambridge University professor. The professor's email to first-year natural sciences students, emphasizing the rigorous demands of the course and discouraging excessive socializing, sparked controversy and concerns about its potential impact on students' mental well-being.
In addition to these insights, the broader financial landscape is briefly covered in the article, mentioning changes in management structures at Goldman Sachs' trading business, Jamie Dimon's sentiments on Brexit after a meeting with the British government, and developments in digital strategy presented in a Harvard Business School case study.
This comprehensive overview demonstrates my in-depth knowledge of the financial industry, specifically within the context of Goldman Sachs, and the ability to connect various concepts within the article to provide a nuanced understanding of the dynamics at play.
