Goldman Sachs Expands Loyalty Oath Policy

Goldman Sachs plans to require junior analysts to certify every three months that they have not accepted job offers from any rival firms, especially private equity companies, in a bid to curb talent poaching. The policy addresses the widespread 'on-cycle recruitment' practice, where private equity firms secure future hires from banks even before analysts start their roles or complete training. JPMorgan Chase has implemented similar measures, warning new hires they could be fired for accepting outside offers within their first 18 months. Investment banks are concerned that early commitments can create conflicts of interest, as junior bankers with access to confidential information might already be committed to competitors. Critics say aggressive private equity recruitment exploits banks as training grounds and causes significant loss of expertise. The new loyalty declarations underscore the increasing competition for young talent and the industry's worries over ethical and operational risks.