Goldman Sachs gives senior managers a new perk: ‘Flexible vacation’ policy

Investing

David Solomon, CEO, Goldman Sachs, speaking at the World Economic Forum in Davos, Switzerland, Jan. 23, 2020.
Adam Galacia | CNBC

Goldman Sachs is giving its top managers a new perk more common in the tech industry: the ability to take as much vacation time as they want.

The investment bank told managing directors and partners last month that starting May 1, the new “flexible vacation” policy will let them take time off “when needed without a fixed vacation day entitlement,” according to a memo obtained by CNBC. Rank-and-file employees will get at least two more vacation days annually starting next year, the bank said in a separate memo.

“We are pleased to announce enhancements and changes to our global vacation program designed to further support time off to rest and recharge,” the bank said.

While the new policy means theoretically unlimited time away from work for senior executives, in practice, doing so would amount to career self-harm, particularly during market upheaval. Wall Street’s elite often have the opposite problem of not using the vacation they are allotted.

Perhaps that’s why Goldman is mandating that all workers take at least three weeks of vacation annually, including at least one consecutive week away, according to the memo, reported earlier by the Telegraph.

The perk for managing directors and partners — the two most senior and difficult-to-achieve ranks at Goldman — is similar to flexible vacation policies at technology firms including Netflix and LinkedIn.

Here’s an excerpt from the memo:

April 22, 2022
Enhancements and Changes to Our Global Vacation Program for Partners and Managing Directors

As a firm, we are committed to providing our people with differentiated benefits and offerings to support well-being and resilience.  As we continue to take care of our people at every stage of their careers and focus on the experience of our partners and managing directors, we are pleased to announce enhancements and changes to our global vacation program designed to further support time off to rest and recharge:
 
For Partners and Managing Directors

  • Flexible Vacation: Effective May 1, we are introducing flexible vacation for all partners and managing directors, allowing you to take time off when needed without a fixed vacation day entitlement.
  • At Least Three Weeks Off Each Year: Starting January 1, 2023, all of our people, including partners and managing directors, will be expected to take a minimum of 15 days (three weeks) away from work in a given calendar year, or your required minimum if greater – with at least one week of consecutive time off (or more if required by Compliance for your role or applicable local law).

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