Goldman Sachs votes to float

PARTNERS AT Goldman Sachs, one of the oldest and most successful investment banking partnerships on Wall Street, yesterday voted overwhelmingly to go public.

The 190 partners gave the go-ahead to the $25bn (pounds 15bn) autumn float, which will result in multi-million pound payouts for all Goldman partners.

The partners discussed details of Goldman's initial public offering (IPO) in a video-conference link yesterday before voting on the flotation proposals.

The vote was described by Goldman insiders as simply "a rubber-stamping exercise". Flotation of the firm has been described as "almost inevitable" after Goldman's six-strong executive committee endorsed plans to sell 10-15 per cent of the bank back in June.

Since then, a team of in-house experts has been hammering out details of the flotation, which were explained to the partners yesterday.

The partners are believed to have discussed the size of their windfalls, the terms under which they will be able to cash in their shares and the distribution of equity to other Goldman's employees.

The firm is unlikely to disclose details of the plans until it files with the US Securities and Exchange Commission (SEC) later this month. However, partners are expected to receive an average payout of $80m, with the more senior partners receiving windfalls of more than $100m.

Partners are unlikely to be able to cash in their shares straight away - possibly for as long as five years - and all 11,000 of the bank's employees will receive some type of equity stake.

Goldman's 200 managing directors - the so-called "marzipan layer" who occupy the rung below partnership - are expected to be awarded multi-million pound payouts in an attempt to compensate them for losing the chance to attain coveted partnership status.

City sources have estimated the "marzipan layer" payouts at $10m-$15m.

So-called "limited" partners who have retired from the bank have already been told details of their payouts. They are expected to be awarded premiums of 25-55 per cent over their investment in the firm, depending on the precise combination of shares, debt and cash they choose.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Financial Adviser

£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...

SThree: Graduate Recruitment Resourcer

£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...

Guru Careers: Application Support Analyst / 1st Line Support

£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...

Guru Careers: .NET Developer / Web Developer

£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence