Goldman Sachs Managing Directors: Leadership and Controversy

Goldman Sachs Managing Directors are at the top of the company's hierarchy, responsible for overseeing major business initiatives and making key decisions. They are typically promoted from within the firm, with many starting as analysts and working their way up over a decade or more.

These leaders are highly compensated, with some Managing Directors earning upwards of $20 million per year. In fact, the average salary for a Goldman Sachs Managing Director is around $1 million annually.

Managing Directors are expected to be experts in their field, with a deep understanding of the company's operations and market trends. They are also expected to be strong leaders, able to motivate and guide their teams to achieve their goals.

Some Managing Directors have been at the center of controversy, including Greg Smith, who publicly criticized the firm's culture in a 2012 New York Times op-ed.

Goldman Sachs was founded by Marcus Goldman in 1869 in a one-room basement office next to a coal chute in New York City.

The firm was initially run by Marcus Goldman, but his son-in-law Samuel Sachs joined in 1882, and the company adopted its present name, Goldman Sachs & Co, in 1885.

Goldman Sachs pioneered the use of commercial paper for entrepreneurs and joined the New York Stock Exchange (NYSE) in 1896, with a capital of $1.6 million by 1898.

The firm opened offices in several cities, including Boston and Chicago in 1900, San Francisco in 1918, and Philadelphia and St. Louis in 1920.

In 1912, Henry S. Bowers became the first non-member of the founding family to become a partner of the company and share in its profits.

Henry Goldman resigned in 1917 due to his pro-German stance, and the Sachs family gained full control of the firm until Waddill Catchings joined in 1918.

Goldman Sachs was founded in 1869 by Marcus Goldman in a one-room basement office next to a coal chute in New York City. This humble beginning laid the foundation for what would become one of the world's most influential financial institutions.

Marcus Goldman's son-in-law, Samuel Sachs, joined the firm in 1882. His addition brought a new level of expertise and helped shape the company's future.

The firm adopted its present name, Goldman Sachs & Co., in 1885 after Marcus Goldman's son, Henry Goldman, and his son-in-law, Ludwig Dreyfuss, joined the business. This marked a significant milestone in the company's growth and expansion.

By 1896, Goldman Sachs had joined the New York Stock Exchange (NYSE), further solidifying its position in the financial industry. This move opened up new opportunities for the company and its clients.

The firm's capital stood at $1.6 million by 1898, a testament to its growing success and reputation. This marked a significant increase from its earlier days, demonstrating the company's ability to adapt and thrive.

Goldman Sachs expanded its operations in the early 20th century, opening offices in Boston and Chicago in 1900, San Francisco in 1918, and Philadelphia and St. Louis in 1920.

In 1930, Goldman Sachs ousted Catchings and Sidney Weinberg took over as senior partner, shifting the firm's focus away from trading and toward investment banking.

Weinberg's leadership helped restore Goldman's reputation, and under his guidance, the firm became the lead advisor on the $657 million initial public offering of Ford Motor Company in 1956.

The firm also started an investment research division and a municipal bond department during this time, and became an early innovator in risk arbitrage.

In the 1950s, Gus Levy joined the firm as a securities trader, and his innovative block trading strategies helped establish the firm's trading franchise.

Levy's guidance led to the establishment of this trend, and he is credited with Goldman's famous philosophy of being "long-term greedy", which emphasized making money over the long term despite short-term losses.

The firm relocated its headquarters to 20 Broad Street in New York City in 1957, marking a significant change for the company.

Levy took over as senior partner in 1969 and built upon the firm's trading franchise, continuing to shape Goldman Sachs' approach to finance.

The firm faced another financial crisis in 1970, when the Penn Central Transportation Company went bankrupt, resulting in significant losses and lawsuits.

Goldman Sachs' reputation was threatened, but the firm was able to recover and adapt, ultimately leading to the creation of credit ratings for commercial paper issuers.

Under the direction of Senior Partner Stanley R. Miller, the firm opened its first international office in London in 1970 and created a Private Wealth Management division along with a fixed income division in 1972.

The firm pioneered the "white knight" strategy in 1974 during its attempts to defend Electric Storage Battery against a hostile takeover bid.