Understanding Partner Compensation at Goldman Sachs Presented by

Understanding Partner Compensation at Goldman Sachs Presented by Mark Egge March 6, 2019

Itasca Partners LLC

www. aprahome. org

Compensation for partners at

Why?

UHNW

Overview How Try Other

How

Partners? = “Partner Managing Directors” (PMDs)

Compensation Basics 1 Series 2

$950, 000 1 Series 2

1 Series 2

40% Compensation = of Net Revenue

Bonus pool = 15%

Series 1 30% Discretionary 70% Points

“Points system” ? Longevity? Business? Ranking?

30% Portion # PMDs Longevity Business Ranking

Series 1 30% Discretionary 70% Points

? Discretion of top partners 70% Portion # PMDs Profitability Yield Politics

1 [SERI ES Series 1 NAME ] (30%) Bonus (70%)

How Try Other

2018 Comp $12. 3 B Pool Est. # 420 PMDs Base Salary $950 k Figures

1 $950 k

Bonus pool $12. 3 B X 15% = $1. 845 B

Bonus pool $1. 845 B 30% = 70% = $553. 5 M $1, 291. 5 M (Points) (Disc. )

$553. 5 M 30% Portion # PMDs 420 Longevity $1. 32 M Business Ranking

1 $950 k $1. 32 M

$1, 291. 5 M 70% Portion # PMDs 420 Profitability $3. 08 M Yield Politics

$5. 35 M 1 $950 k $1. 32 M $3. 08 M

How Try Other

Other benefits FEES

What about an Executive Managing Director? $1. 75 M - $3 M

Caveats $ $

WRAP UP

Sources Campbell, Dakin. “A small group of Goldman Sachs employees just got the call of a lifetime…” Business Insider November 7, 2018. Carney, John. “How Pay at Goldman Sachs Really Works. ” Business Insider, July 19, 2009. Chandler, Clay. “Goldman's Golden Chance; An IPO or merger could reap millions for partners at the Wall Street titan -- but would it destroy what makes Goldman Sachs? ” The Washington Post, June 7, 1998. Craig, Susanne. “Joining the Club -- Inside Goldman's Secret Rite: . . ” Wall Street Journal, October 13, 2006. Craig, Susanne. “Symbol of excess tries to give billions back. ” International New York Times, October 28, 2013. Mc. Donald, Duff. “Please Sir, I Want Some More…. ” NY Magazine, 2005 Roose, Kevin. “Goldman’s Overrated Partner Day. ” NY Magazine, November 14, 2012. Story, Louise. “Goldman considers a mandate for charity. ” International Herald Tribune, January 12, 2010. Treanor, Jill. “Hello partner. Goldman bankers wait for the million-dollar call: . . ” The Guardian, November 9, 2012. DEF 14 A for Goldman Sachs Group, Inc. Dated March 23, 2018 “Goldman Sachs Compensation Practices” The Goldman Sachs Group, Inc. March 2010

www. aprahome. org Thank you! @mnegge mark@itascapartners. com