(Reuters) - Goldman Sachs Group Inc (GS.N) plans to announce internally its list of newly appointed partners on November 14 and its list of new managing directors the following day, according to a person familiar with the matter.
A committee led by Vice Chairman Michael Sherwood is now vetting candidates for those promotions, the source said.
The weeks-long vetting process, known at Goldman as “cross-ruffing,” involves intensive analysis of candidates’ performance and several rounds of interviews with people who work with them. Those who make it to partner or managing director are informed before a memo is sent internally via email naming them.
The promotions happen once every two years.
A spokesman for the investment bank, David Wells, declined to comment on the matter.
Becoming a Goldman Sachs partner is a coveted title on Wall Street because of its prestige and lucrative compensation. Fewer partners are likely to be named this year because of a broad decline in Goldman’s staff levels. The bank tries to keep the partner and managing director pools steady in proportion to its overall headcount.
Goldman had 32,300 employees as of June 30, down 3,400, or 10 percent, since the end of 2010. It named 110 employees as partner in 2010, and 321 managing directors.
Since the start of 2011, dozens of partners have left the investment bank, including some high-profile executives such as David Heller and Ed Eisler, two co-heads of Goldman’s securities business. The departures make room for a new class of employees to move up, but also allow Goldman to cut costs more dramatically by shedding more expensive, higher level staff.
On a conference call in April, Chief Financial Officer David Viniar said 15 to 20 percent of Goldman partners typically leave the firm every two years and that he expects more departures through the end of 2012.
“It is natural, and it is actually important, and it is warranted,” said Viniar.
Reporting By Lauren Tara LaCapra; editing by John Wallace