When Goldman Sachs went public 12 years ago this month, an elite group of 221 executives controlled the strategy and shares of the investment bank.  While much of the culture remains, partnerships have given way to the demands of outside shareholders.  The roughly 480 partners currently own less than 10 % of the company, down from approximately 60 % at the IPO in 1999. Their power base may soon erode further.  Senior Goldman executives reportedly are considering whether to cull partner-heavy divisions, like investment banking. 

Most financial companies discontinued partnership titles after they went public, transferring the bulk of the ownership to shareholders.  Goldman, the last of the major Wall Street firms to go public, has maintained a hybrid model, in part as an incentive for top employees.

    Original Partner Class of 1999.   Out of 221 original partners, 39 remain today, although one is no longer a partner, in the legal sense.  This esteemed group has produced all of Goldman Sach's CEO's  - including Llyod Blankfein.  It's not a shoe-in, however, that Mr. Blankfein's successor will come from the original class.  It's possible for a 'newbie' to take his or her place in history. 

Leading contenders and dark-horse candidates to succeed him have also been partners since the initial offering, including President Gary Cohn;  Vice Chairmen Michael Sherwood and Michael Evans;  co-head of securities David Heller;  and, top investment banker Yoël Zaoui.  Should the board reach into the younger generation - a first at Goldman - they could tap one of these executives:  Harvey  Schwartz, Edward Eisler and Pablo  Salame, all co-heads of securities - and none of whom was an original partner.  

For further details, go to:   [NY Times Dealbook, 5/16/11, "A Once-Tight Flock.."]

[ Click for related story in BTN (5/17):  The Goldman Diaspora ]