Working from home is no longer an option at Goldman Sachs — but working from Florida might be another story.
More than 100 key Goldman Sachs employees are reportedly poised to migrate from the firm’s New York headquarters to a new office in Palm Beach, Florida.
The snub to the Big Apple — which comes as Goldman bankers reported back to the office on Monday after more than a year of working remotely — would mark a shift in Goldman’s more than 150-year-old, New York-centric strategy at the hands of Chief Executive David Solomon.
The Florida expansion is in the early stages and a few employees have made firm commitments, according to a report from Business Insider (paywall). Among those who have expressed interest in moving are partners in the firm, whose salaries start at $950,000 not including bonuses and other perks.
“High-performing managing directors or vice presidents are also being encouraged to relocate, to signal that the office won’t be considered a backwater that kneecaps their Wall Street career,” the report said, citing an unnamed source.
Staffers who move to Florida will not be expected to take a pay cut, according to the report.
Goldman executives at the global markets division, which includes the the core sales and trading operations, will select which members of the team to send, with the idea that “each cluster would be an offshoot of a larger team based in New York and made up of as many as eight or 10 people,” the report said.
Marc Nachmann, co-head of the trading division, commutes regularly from Boca Raton, which could be part of the reason behind the migration. The other head of trading, Ashok Varadhan, is based in New York.
Florida’s sunshine and low taxes made it a haven as coronavirus has shut down New York City. But it’s unclear whether CEO Solomon — who called working from home during the pandemic an “aberration” that was not a “new normal” — will be pleased with large swaths of employees moving to Florida permanently.
As reported by The Post, Goldman’s Asset Management division had been planning to expand its presence in Florida but a lack of interest has stalled those plans. When employees were polled on the cost-saving idea — with managers informally sounding out the rank-and-file, and the company even sending out an email survey — the bank was met with a notable scarcity of snowbirds, sources told The Post.
Goldman has previously dismissed the idea that the firm is planning major relocations.
“As announced at our investor day in January 2020, we are executing on the strategy of locating more jobs in high value locations throughout the US, but we have no specific plans to announce at this time,” Goldman said in a statement.
Lydia Moynihan | NYPost