Chapter 6
The Consequences of Going Public
WHILE THE IPO ACCELERATED MANY CHANGES ALREADY taking place at Goldman, it also brought about new ones. The newly public Goldman faced the challenges of a change in ownership and financial interdependence among the partners, the elimination of capital and growth constraints, and the need to take into account outsiders’ perceptions of the firm—all had distinct cultural consequences.
A fundamental change made because of the IPO was the addition of the new principle expressing a commitment to providing superior returns to shareholders. Many observers point to this as the biggest change over time at Goldman because the firm could no longer privately make decisions in its best long-term interests in its ...
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