Goldman Sachs’ London MDs Confused Over Allowances and Job Cuts
Goldman Sachs is currently experiencing significant changes, particularly among its managing directors (MDs) in London. As new promotions are announced, uncertainty lingers regarding the future of personal allowances and potential job cuts.
Uncertainty Surrounding Personal Allowances and Job Cuts
Goldman Sachs MDs in London remain unclear about the status of their personal allowances. These allowances were initially introduced to bypass the EU bonus cap. Under this cap, bonuses are limited to twice an employee’s salary. According to sources, these allowances are particularly appealing as they come without the strings attached that typically accompany bonuses. However, the MDs are anxious, as there has been no communication regarding potential reductions.
Potential Cuts to Allowances
- Personal allowances are discretionary cash payments.
- They serve to augment salaries without committing to fixed compensation.
- MDs earning over seven figures are the primary recipients of these allowances.
In May 2024, Goldman Sachs announced it would eliminate the bonus cap for London staff. This meant bonuses could be as high as 25 times their salary. However, in August 2025, MDs were informed that allowances might be halved. Since that announcement, there has been no further clarification, causing concern as bonus season approaches.
Expectations for Bonuses and Job Cuts
MDs express skepticism regarding bonuses reaching the reported 25x salary threshold. One MD commented that this expectation seems unrealistic. However, consensus indicates that while bonuses may increase, allowances could be significantly reduced as a result. Job cuts within the firm are also under discussion, but the details remain vague.
As time runs out for formal announcements, MDs are left speculating. Many believe they will only gain clarity on compensation decisions on the actual day bonuses are revealed. Goldman Sachs has yet to provide any public comments on these matters.
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