Goldman Sachs partners own less than 5pc of shares

IN a symbol of how much Goldman Sachs has changed from its days as a true partnership, the company disclosed Wednesday that the combined ownership of its so-called partners has dropped below 5pc.

After departures and person- al stock sales, the stake held by bank’s most senior staff slipped to 4.79pc as of July 3, according to a regulatory filing Wednesday. That’s down from 5.65pc in January, and more than 60pc when the bank floated in May 1999. Periodic filings have shown for years that their holding has been gradually shrinking, and as long as it’s below 5pc, the bank isn’t required to provide updates.

The latest decline follows US President Donald Trump’s election in November, which sent the stock soaring as much as 39pc over four months, giving Goldman employees a huge paper windfall before the rally cooled. Initially, investors speculated that the new administration would roll back costly regulations, slash corporate taxes and pursue policies that spur trading. But in recent months, clients have pulled back from betting amid congressional gridlock. On Tuesday, Goldman Sachs traders posted their worst first-half performance since Lloyd Blankfein became chief executive in 2006. The stock is down 6.9pc this year.

Partner remains the investment bank’s highest staff rank, a nod to its history as a private partnership before going public in 1999. The company typically names a new class of partners every two years. The stake held by partners fell after the election as one of the biggest holders, Gary Cohn, stepped down as to take a job in the White House.

A filing in March showed that he had sold more than $200m of Goldman Sachs stock. (Bloomberg)