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Goldman Sachs Does Not Look Kindly Upon First Year Analysts Who Plan In Advance

Pop-quiz: you’re a first year analyst at Goldman Sachs, with a little more than twelve months left until your two year commitment is over and you are free to take a job elsewhere. Do you A) take part in the private equity and hedge fund recruiting that is taking place now, and, if someone was particularly impressed with your junior mistmaking skills, accept an offer for a gig beginning in June 2013 or B) tell the buyside you are sorry but are prohibited from engaging in such activities at this time, as they would pose a conflict of interest for Goldman Sachs? At this time, GS JM’s think the correct answer is A, while higher-ups, who believe there is a firm policy in place that says no analyst shall take part in recruiting until six months from the time they’ve finished the two year program, are going with B. So now this is happening:

Goldman has been firing IBD first year analysts with buyside offers for next year. Senior people are calling up funds to ask if any analysts have received offers from them. A bunch have been cut so far.

A bunch, we’re told, is in the ballpark of four, which seems like enough to put the fear of god into people.

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68 Responses to “Goldman Sachs Does Not Look Kindly Upon First Year Analysts Who Plan In Advance”

  1. GS 1st Year says:

    Does this dude from recruiting who keeps calling and asking if I want to be his partner for table tennis doubles count as a "buyside firm?"

    -Concerned Stanford Grad

  2. Guest says:

    This is not a big deal.

    – R. Dalio

  3. guest says:

    :(

  4. VonSloneker says:

    "Senior people are calling up funds to ask if any analysts have received offers from them"

    So, four HR guys sold out the analysts to whom their respective firms made offers in order to get in good graces with "senior people" at GS. Just for the chance that you might ply your useless trade at Goldman? That's cold man, cold…

    -J. Iscariot

  5. HAM05 says:

    first they came for the analysts, but i didn't speak out because i wasn't an analyst

  6. Texashedge says:

    Good idea. You definitely only want to retain the analysts that couldn't get buyside jobs.

    • guest says:

      You also want to a) be known as a firm whose analysts will be at a disadvantage to every other firm's in the PE/HF recruiting cycle, and b) seed some of the biggest IB fee payers with people you fired or alienated by firing their new hires.

      • zeitguest says:

        … unless those offers get rescinded, these guys just got a year of vacation with a much better job at the end.

    • Lloyd's finest says:

      Pretty sure you want to retain the analysts that could, but make sure they don't apply until after. After all, we're doing god's work here.

      Either way, supposedly 4 drones, meh.

  7. CarriedInterest says:

    Don't worry McDonalds! We're onto you and your poaching ways!

    -UBS MD

  8. Bandersnatch says:

    > 6 mos = conflict of interest, fired
    <= 6 mos = no conflict of interest, OK
    GS is jealous and arbitrary like the Old Testament God whose work they do

  9. Anonymous says:

    Hey, just be happy we don't start off Monday morning meetings with a coolaid chug and a silent count to 60 to see who's least loved. Just because you receive a paycheck doesn't mean the cult model has been thrown out.

    -Grand Imperial Blankfein

  10. MIT says:

    Is this good time to fill out Goldman application???

  11. ... says:

    Any of you try working with a second year analyst that already has a job lined up?

  12. serious question says:

    The funds are telling GS who they've hired? Aren't these employment contracts confidential?

  13. Guest says:

    Goldman had to find some way to higher more first years….

    -Goldman MD (doing god's work) who fired four drones this week

    • Pedantic Guy says:

      Unless you work in HR, you are clearly not at Goldman as everyone else would know the difference between "hire" and "higher"

      –Guy who recognizes the irony of claiming that it is the people in HR who are most likely to not know the proper use of "hire," but is leaving his statement just as it is both to show his contempt for HR, and also because the statement is probably true.

  14. Randomguy123 says:

    The fact that these kids had jobs leaked internally through the grapevine and then management had to act. They called the firms to confirm. I don't think they reached out to the firms first.

    This is a major departure from Wall St practice which generally encourages (or is ambivalent to) kids recruiting – after all they only want ~30% of analysts for direct promote to associate.

    One of my friends knows one of the guys that got fired and said he was still working around the clock and getting crushed and it didn't matter. It's pretty cold to fire a 21-22 year old when he's in his first job out of college.

    • Class of 2007 says:

      Morgan Stanley pulled that crap in 2008. I hope they get downgraded this week. F*ck those guys.

      • guest says:

        Indeed. MD gave guy I hired what he thought was a reaming. Thanks, we'll have him start right away.

  15. CarlyleBallahOffice says:

    What about 1st year operations analysts? Seriously, should I be worried????

  16. Jack says:

    "junior mistmaking skills"

    +1

  17. Also_A_Guest says:

    Firing people that already have jobs lined up?

    Yeah, that'll learn'em……..

    What's next Dr. Evil, waterboarding fish?

  18. Guest says:

    Awe you think its too cold to fire a know nothing do nothing kid out of college.. Boo Hoo.. Perhaps you should call HR and complain.

  19. Digital Underground says:

    Well, D is what I do, so, yo listen up.

    – UBS Industry Freak MD

  20. Fire me? It's all good. They hand me that pink slip and I'm whipping it out on the MD's desk. Swagged out.

  21. El-Mo's Dealer says:

    The guys who have skin in the game will continue to get the best and brightest. It's exciting to see the talent wars heat up. Alphas are always on the move, and they will eat your lunch soon. We get what we deserve, not what we want.

  22. Jeff Brown says:

    I can lend credence to this article, I was one of the analysts. I was in TMT M&A and had an AMAZING VC opportunity. Admittedly, I was aware of some of my colleagues getting cut loose; however, I am black and though affirmative action would shelter me from termination. I am 100% serious.

    • Randomguy123 says:

      This is just a lie. I know the kid who got fired from TMT. And there is no TMT M&A group.

    • guest says:

      Jeff BROWN… affirmative action…

      -Guy who is scared to connect the dots any further due to the extensive discussion of HR here

  23. Dead_cat says:

    Guaranteed buyside job > 6 months mandatory unemployment > MBA

  24. George W. says:

    I hear unemployment under Obama pays just about as much as first year's at GS made this year.

  25. guest says:

    So GS analysts basically had their 'no-trade' clause waived by the firm?

    And HR thinks this is punishment?

  26. Guest says:

    This has nothing to do with conflicts of interest. GS spends a lot of time recruiting and training these kids to then have them become useless six months into the job. They are instead spending their time interviewing six months into the job when they should be working, and after they get offers, they have little incentive to stay engaged in their work.

  27. Peter Vijeh says:

    this sounds like a win-win for the analysts, they get their first year bonus, a year off and then come back to a buyside job. Way to think that one through goldman.

  28. tPoK23 wow, awesome post.Really thank you! Awesome.

  29. basenji dog says:

    Yes, I do believe the same and my thought go with you on this.

  30. reference says:

    Alphas are always on the move, and they will eat your lunch soon. We get what we deserve, not what we want.

  31. I admit, I have not been on this webpage in a long time… however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues.Great stuff as usual Some of us know how to handle those feelings without causing any additional conflict or problems in certain situations.

  32. I don't think they reached out to the firms first.