Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Goldman Sachs floats with shares for all

Lea Paterson,David Usborne
Monday 15 June 1998 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

GOLDMAN SACHS yesterday confirmed its plans to float on the stock market and unlock unparalleled wealth for almost 200 of its employees. The US investment bank will end its 129-year history as a private company, with a shares bonanza for 190 of of its partners worth hundreds of millions of pounds.

Each could receive a staggering $80m (pounds 54m) worth of shares, making them the recipients of one of the biggest payouts in corporate history. The lucky few include 36 based in London, including Gavyn Davies, the leading UK economist. But it is not just the partners, most of whom are already millionaires, who will profit. The bank said yesterday that it plans to distribute shares to all its employees, no matter how junior.

Industry observers reckon that bankers in the so-called "marzipan layer" - that is, one step below the coveted status of partners - could each receive paper windfalls of as much as $8m (pounds 6m). More junior employees, such as clerical and technical support staff, are likely to receive far less, although sources close to the firm stress that all permanent employees should benefit in some way. Precise details of the share sale windfalls will not be known until later this summer.

Critics of the move believe the partners are motivated by self-interest, and say the share sale will destroy the bank's unique partnership culture.

Golden windfall, page 6 Business, page 17

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in