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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.

Lofty Fees Coming Down to Earth (WSJ)

Investors unhappy with the performance of hedge funds are no longer willing to accept traditional fees of 2% of assets under management and 20% of investment profits. The average hedge fund fee is down to 1.6% of assets and 18% of investment gains.

Glass Ceiling Cuts Deep (BBW)

Women make up 54% of the workforce in financial services yet account for just 16% of senior management. One reason: when layoffs come, women are the first ones out the door.

Where are They Now? (WSJ)

What better way to celebrate the fifth anniversary of the 2008 financial crisis than checking in on all the key players surrounding the economic downfall. Surprisingly, many are still relevant. Others have essentially disappeared.

Shaking Things Up (Reuters)

With new scandals seemingly popping up every day, J.P. Morgan has made several moves aimed at tightening its oversight. The bank named two new directors and granted additional powers to its lead independent director.

When ‘Managing” Means Firing (ABC)

Wells Fargo will need to “manage [the] capacity” of headcount within its mortgage unit as it prepares for a sluggish third quarter. The bank has already cut 3,000 jobs since July. Expect more heads to roll.

Layoffs (FIN Alternatives)

London hedge fund Comac Capital cut its headcount by one-third following two years of losses and a massive outflow of assets under management.

Buzz Around the Office

National Pride (The Telegraph)

If a 1,000-member promotion committee has its way, a new sport will be introduced during the 2020 Summer Olympics in Tokyo: competitive hide-and-seek.

List of the Day: Toxic Office

Think you’re working in a toxic office environment? Here are three tell-tale signs.

  1. False accusations are the norm.
  2. Poor performers never lose their job.
  3. Everyone operates under different rules.

(Source: AOL Jobs)

AUTHORBeecher Tuttle US Editor
  • Vi
    10 September 2013

    Probably only affects 5 or 6 employees.

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