Goldman Sachs CEO David Solomon speaks at the World Economic Forum in Davos, Switzerland, on January 23, 2020.
CNBC’s Adam Galacia
Goldman Sachs is providing its top executives with a new perk that is becoming more common in the tech industry: the ability to take as much vacation time as they want.
According to a memo obtained by CNBC, the investment bank informed managing directors and partners last month that starting May 1, the new “flexible vacation” policy will allow them to take time off “when needed without a fixed vacation day entitlement.” Starting next year, all employees will receive at least two additional vacation days per year, according to a separate memo from the bank.
“We are pleased to announce enhancements and changes to our global vacation program designed to further support time off to rest and recharge,” Goldman said.
While the new policy theoretically allows for unlimited time away from work for senior executives, doing so would amount to career self-harm, especially during market upheaval. The Wall Street elite frequently have the opposite problem of not taking their vacation time.
Perhaps this is why Goldman requires all employees to take at least three weeks of vacation per year, including at least one consecutive week away, according to a memo obtained by the Telegraph.
The benefit for managing directors and partners — Goldman’s two most senior and difficult-to-achieve ranks — is similar to flexible vacation policies at technology firms such as Netflix and LinkedIn.
As Goldman CEO David Solomon encourages his workforce to return to the office, the move could be a way to give senior talent some flexibility back. Solomon stated earlier this month that in-person attendance at US offices remains below the pre-pandemic level of approximately 80%.
An excerpt from the memo follows:
22nd of April, 2022
Changes and Improvements to Our Global Vacation Program for Partners and Managing Directors
As a company, we are committed to providing our employees with unique benefits and offerings that promote well-being and resilience. We are pleased to announce enhancements and changes to our global vacation program designed to further support time off to rest and recharge as we continue to care for our people at all stages of their careers and focus on the experience of our partners and managing directors:
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).