Goldman Sachs Group, Inc. (GS.US) experiences the departure of many senior bankers due to promotion bottlenecks and shrinking bonuses.

According to three informed sources, Goldman Sachs Group, Inc. has lost over ten senior investment bankers this year, a number higher than usual. Internal reorganization and slow business start in 2025 have prompted them to seek new opportunities. Two of the sources, who discussed personnel changes anonymously, stated that some bankers left because they saw no prospects for promotion this year (including entering the elite partner level of Goldman Sachs Group, Inc.), while others expected their bonuses to shrink due to stagnant trading business in the first half of the year. Despite experiencing talent loss, Goldman Sachs Group, Inc. still ranks first in the Wall Street M&A business rankings and its fee income has soared to almost 2021 levels. Data from Dealogic shows that the bank's net investment banking revenue in the first nine months of this year has reached the highest point since 2021. Some of the bankers who left this year have joined competitors such as JPMorgan Chase, Wells Fargo & Company, and Citigroup, while others have joined boutique investment banks like Evercore. A spokesperson for Goldman Sachs Group, Inc. responded: "We always operate the company with the interests of clients and shareholders in mind, and our outstanding team and brand strength are the foundation of our success." The bank will announce a new list of partners in 2026. In 2024, Goldman Sachs Group, Inc. appointed 95 new partners (including 26 women), and this appointment took effect earlier this year. This year, they led the completion of the sale of Electronic Arts Inc. for $55 billion to a private equity consortium and the Saudi Public Investment Fund, and guided the split of the Huarui Group's North American business Amrize, which is now valued at $26 billion. Argus Research banking analyst Stephen Biga pointed out: "Although the total volume of transactions has decreased, the size of individual transactions has increased, reducing the need for personnel." Dealogic data shows that in the third quarter, the total volume of global M&A transactions surged by 40% year-on-year to $1.26 trillion, but the number of transactions decreased by 16% year-on-year to 8,912, marking the worst performance in the third quarter in 20 years. The recovery of investment banking business has boosted Goldman Sachs Group, Inc.'s stock price this year by nearly 38%, outperforming the S&P 500 financial index's 11% increase. Leadership Changes Goldman Sachs Group, Inc. implemented significant leadership changes this year, establishing a joint management mechanism in key departments and adding six new members to the management committee, while also creating a new financing department. This Wall Street giant has also moved its annual layoff plan from September in previous years to the second quarter. Such adjustments are typically based on performance and result in a 3%-5% reduction in positions. Company documents show that its total staff decreased by 2% in the second quarter to 45,900 people. Michael Reese, portfolio manager at Gabelli Funds, stated: "The market has been expecting a warming in the M&A environment for some time. Given Goldman Sachs Group, Inc.'s brand strength and comprehensive banking capabilities, I believe they are ready to embrace this tailwind. There may be fluctuations in personnel numbers, but the bank's culture and productivity will not be affected."