Goldman Sachs has added three partners to its rates and mortgage-backed securities group, as part of the bi-annual process that elevates managing directors to the top echelon of the firm's management. Justin Gmelich, head of the pass-through business, and Tom Cornacchia and Stacy Bash-Polley, co-heads of the rates sales business, have all received the bump up to partner. They all report to Jon Sobel, partner and head of the rates business. He declined comment.
The process is a vestige from when Goldman, now a publicly traded company, was privately held and its profits were pooled among partners. While those profits now also go to shareholders, the partners, of course, take a healthy chunk and receive significant amounts of equity stakes through options. Though the partner title has lost some luster from its earlier days, it is still considered very prestigious. "It's not as secret a club as it used to be, but there are still a lot of perks," said one outsider.