Before 2005, the company determined workers’ annual awards 'not just on how much business you’d brought in, but also on how good you were for the organization', Smith, a former vice president, writes in Why I Left Goldman Sachs: A Wall Street Story.
'From 2005 until the present day, the system has become largely mathematical: you were paid a percentage of the amount of revenue next to your name', a figure that could vary from 5% to 7%, wrote Smith, 33, without saying how he learned about such a change. 'The problem with the new system was that people would now do anything they could - anything - to pump up the number next to their name'.
A source close to the situation told Here Is The City, however, that there was no change in the way bonuses were allocated at Goldman in 2005, and payouts continue to be awarded against 10 criteria, which includes client focus and risk management, culture and values, diversity and inclusion, reputation and judgement and commercial effectiveness.
Hit the link below to access the complete Bloomberg article:
Goldman Bonus System Corrupted in 2005, Smith Book Says
The Billionaire's Apprentice
The Buy Side: A Wall Street Trader's Tale of Spectacular Excess
