Goldman Pulls Treasured Perk from Less Affluent Workers
Goldman Sachs was recently ranked the most prestigious firm on Wall Street and the second best bank in which to work. We’ll have to wait and see if those rankings change in the coming year after Goldman just wrestled a major perk away from its less affluent employees.
For years, all Goldman workers were given a brokerage account within the firm, meaning HR managers, executive assistants and all other full-time employees were essentially treated as private wealth clients. That perk is reportedly no longer being offered to employees without an overly impressive bank account.
New York Magazine reported that, earlier this year, Goldman began charging employees with less than $1 million in assets a $3,000 annual fee to keep their account active. Then, just recently, the firm notified employees with assets under that limit that they would need to move their money to a generic Fidelity account by the end of 2014. Goldman acknowledged the decision, noting that its platform is better designed for high-net-worth individuals. The move is affecting current and former employees.
In fairness to the firm, the perk has likely been rather painful to administer as Goldman’s former and current headcount continues to increase. Moreover, Goldman likely offered the perk as a simple way to meet compliance requirements by monitoring employee trading. New York Magazine says that Goldman has entered into a relationship with Fidelity that makes compliance just as routine.
Still, as one former employee told the magazine: “No one wants to be told, ‘Your $500,000 isn’t good enough.’”
Goldman’s Twitter Page (eFinancialCareers)
If you want to work at Goldman Sachs and you’re not following the Goldman Sachs Careers Twitter feed you may be missing something. The 128 accounts Goldman follows could give you a window into how the firm recruits.
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National Pride (The Telegraph)
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