At Goldman Sachs, leave becomes unlimited for top executives

Remote work, the practice of which exploded during Covid, did not always rhyme with flexibility. In investment banks, and in Goldman Sachs in particular, the change of the subway-work-sleep regime is usually replaced by a 100-hour work week. And with it the risk of fatigue burn out increased for white-collar financial workers, who saw that the line between personal life and office life had disappeared – already very thin.

However, in the face of growing controversy over the health of its employees, Goldman Sachs committed itself last March to improving compliance a rule prohibiting work on Saturdays. This first event was obviously not enough to restore its image and attractiveness to young leaders.

Shutdown in a week

In fact, to go further and motivate its employees, Wall Street Bank will allow its employees and managing directors to take leave as much as they want under the new “flexible recreation” program to promote “recreation” and wellness, the diary reported on Saturday. The Telegraph.

In a note by Goldman Sachs Group Inc. G.S.N. points out that from May 1, it no longer imposes restrictions on paid leave and that senior executives can “take leave as needed,” the publication said.

For others, employees will be required to take at least 15 days off per year from January of the following year with at least one week of consecutive days of leave, according to information from Telegram.

Also, in the context of the risk of financial collapse, and while interaction with digital channels has increased with telecommuting, will these unlimited vacations set by managers really be put into practice?

In any case, the bank remains true to its meritocracy, focused on top management. In 2021, despite the crisis, the remuneration of the CEO increased by 65%.

The question of attractiveness in the full strengthening of rates

The American company also intends to limit the risks bad buzz, especially since its workforce will increasingly face a delicate context. With the cessation of central banks’ easing monetary policy, lending rates will increase and funding opportunities will become more difficult.

In the aftermath of the post-pandemic and war in Ukraine, when financial advice explodes, Goldman Sachs must ensure that talent is attracted, especially when its competitors, such as Citigroup, also argue for respect for working time.

As early as March, a document about thirteen recently hired Goldman Sachs analysts appeared on social media, explaining that their mental and physical health had significantly deteriorated. “At one point I didn’t eat, I didn’t take a shower, I didn’t do anything but work from morning till midnight.”said one of them.

In terms of results, the investment bank also saw a drop in net income in the first quarter of –43%, to $ 3.8 billion. But active brokerage in highly volatile markets has helped offset the decline in investment bankers’ operations.

Income from asset management fell by 88%, in part due to losses in equity investments. On the other hand, profits from retail banks and capital management increased by 21%.

Goldman Sachs did not immediately respond to a Reuters request for comment.

(From AFP and Reuters)