NEW YORK — Goldman Sachs Group Inc. bankers are grumbling when making those extra calls to chase deals after the Wall Street giant introduced stricter rules for reimbursing phone bills.
As part of the firm’s efforts to cut costs and shift employees from BlackBerry devices to personal mobile phones, it announced a new companywide data and voice reimbursement policy that began March 1 and will take full effect in coming months, according to an internal memo seen by Bloomberg.
Goldman Sachs will now chip in $10 for data charges on US phone bills, 10 pounds in the UK, 10 euros in Germany, and HK$100 in Hong Kong, according to the memo. It also spells out conditions for reimbursing costs for phone calls.
The new plan is rankling some dealmakers, who spend much of their day on the phone calling and e-mailing clients to advise on transactions or drum up new business. They asked not to be identified discussing internal matters. In the past, Goldman Sachs generally issued BlackBerry work phones and covered full bills, one of the people said.
Previously, Goldman Sachs didn’t have a firm-wide policy for how to reimburse employees for using personal devices, giving managers across different teams and divisions more leeway, according to a person familiar with the policy.
The firm chose the $10 figure because that’s typically what it costs for a gigabyte of data, and an application used by employees for work e-mails doesn’t usually consume more than that, the person said.
The policy is the latest step in a sweeping effort to reduce expenses. In early 2016, chief executive Lloyd Blankfein embarked on the firm’s biggest cost-cutting push in years, limiting airfare, hotels, and entertainment unless it served clients and spending less on printing pitch books or brochures, people with knowledge of the policy said at the time. The belt-tightening helped shave $900 million from annual expenses and, with fewer legal and regulatory fines, drove 2016 noncompensation expenses to the lowest level in a decade.