In 2021, junior analysts at Goldman Sachs used PowerPoint slides to detail their grievances stemming from overwork during the height of the pandemic. Message received. Across Wall Street, pay and perks were boosted to keep the bantam bankers happy. Expect a little less moaning from the junior ranks in future.
Times have changed. On Monday, during its second-quarter earnings call, Goldman Sachs hinted it would bring back its annual cull of underperformers paused since 2019.
Here’s why. Group revenue fell 23 per cent, quarter over quarter. Notably, equity capital markets fees plummeted by 89 per cent. While the Goldman franchise remains dominant, last year’s performance was one that will probably not repeat itself any time soon. That makes the 2022 downturn look ever more stark. All staff at the bank must suddenly feel more vulnerable than entitled, or even empowered.