[ by Melanie Gretchen ]

Goldman Sachs constructed an obstacle for personnel who are trying hard to break into the senior tiers of the firm.  Since 1996, the New York-based firm has named managing directors every year.  According to CEO and Chairman Lloyd Blankfein and President Gary Cohn, the firm will name a new class of managing directors every two years, rather than making selections every year - a practice that dates back to 1996.  

After this year's class is announced, the biennial announcement of managing directors will allow the firm "to invest more in the managing director selection process so that it will continue to be a disciplined and rigorous exercise.  This will help to ensure that the managing director title remains as aspirational as it should be for our top performers."

"The selection and development of leaders at Goldman Sachs remains at the heart of our culture and is fundamental to our success. The value proposition of a long-term career at the firm is as compelling as ever, and we are confident that we will continue to attract, train and develop a strong pipeline of managing director candidates in the future." -- Text from an internal memo last week

Last year, the firm in November named 266 new managing directors, one day after announcing 70 new partners - the smallest group since the firm went public in 1999.

[C-I Note: Does that make managing directors closer to or farther from becoming partners, one rank above, who are also chosen every 2 years?

For further details, go to [Dealbook, 3/7/13].