Goldman Sachs Equity FAQ

Goldman Sachs uses different vesting schedules depending on the type of RSU grant. Year-End RSUs typically vest over 3 years at 33% annually, though some Year-End RSUs are actually vested immediately on the grant date (with delivery and transfer restrictions still applying). Base RSUs and Additional RSUs vest on specific dates determined at grant, while CEO/COO grants may vest over 5 years at 20% annually.

Yes, Goldman Sachs offers an ESPP with a 15% discount and a lookback feature. The plan has a 12-month offering period with two 6-month purchase periods (semi-annual purchases), allowing you to contribute up to $25,000 per year. To receive favorable tax treatment, you must hold shares for over 2 years from the offering date and over 1 year after the purchase date.

When your RSUs vest, they're treated as ordinary income and subject to tax withholding at that time. Goldman Sachs allows you to adjust your tax withholding rate, though specific default rates vary. The choice of withholding rate may also affect transfer restrictions on your delivered shares, so it's important to consider both tax and liquidity implications.

Goldman Sachs offers a 100% match on the first 6% of eligible compensation you contribute to your 401(k). The company also offers mega backdoor Roth capabilities through after-tax contributions and Roth in-plan conversion options. Employer contributions may be subject to either graded or cliff vesting schedules.

Goldman Sachs has extensive forfeiture provisions that may apply when you leave the company, particularly if you're classified as a Material Risk Taker under EU/UK frameworks. Unvested RSUs are typically forfeited upon departure, and even vested shares may be subject to clawback provisions related to misconduct or risk events. The specific treatment depends on your role, reason for departure, and the terms of your grant agreement.

Concentrated stock positions are a common concern for Goldman Sachs employees due to large RSU and ESPP grants over time. The company's Year-End RSUs that vest immediately (though with delivery restrictions) can particularly contribute to concentration risk. Some employees use strategies like Section 351 exchanges to manage concentrated positions, though you should consult with a financial advisor about the best approach for your situation.

Goldman Sachs employees can only trade company stock during designated "window periods" due to blackout restrictions. Additionally, the company has an anti-hedging policy that prohibits all employees from hedging their RSUs, including shares subject to transfer restrictions. Specific window periods depend on your role and access to material non-public information.

Yes, new hires at Goldman Sachs may receive equity grants as part of their compensation package. The company's policy limits guaranteed variable remuneration (including sign-on bonuses) to exceptional circumstances and restricts it to new hires within their first year of employment. Specific grant amounts vary by level, which follows the progression: Analyst, Associate, Vice President (VP), and Managing Director (MD).