Goldman Sachs cracks down on employees with second jobs
The New York Times offers an interesting article on Goldman Sachs treatment of employees who choose to pursue side-careers. Basically, they do not allow it.
This is actually a regulatory issue, as a federal rule requires employees at financial institutions to disclose other sources of income. Some employees either do not know about this rule or choose to ignore it. This can result in some uncomfortable meetings with compliance officers. One employee gained attention for his side career as a hip-hop artist, and was essentially given a mandate to give up his performance career. He chose to quit. Yet another graphics department employee was taken to the woodshed for giving guided tours of Wall Street in his spare time. He also left the firm. One employee who quit to become a writer was told she couldn't write about her time at Goldman Sachs as it would violate her confidentiality agreement, which extended for her lifetime. She was not allowed to work her final two weeks at the firm.
Is all of this unreasonable? It may seem draconian to some. But the bank has a lot on the line in terms of reputation. The need to take a hardline is understandable. Other banks have similar policies. A JP Morgan employee who wrote fiction on the side was upbraided recently, as was a Morgan Stanley employee who developed software on the side. Employees should know this going in. There are many employees who moonlight in some form. They should be smart about this. The last thing they want to do is seek attention for their side-career. That guarantees a call from compliance.
- here's the article