# Prof. Roy Smith on author Steven Mandis's suggestion that Goldman Sachs use a partnership structure

1 Faculty News November 21, 2013 ![Reuters logo](/sites/default/files/styles/246w/public/assets/images/con_030503.jpg?itok=0OAgrDF0)>

Excerpt from [Reuters](http://blogs.reuters.com/financial-regulatory-forum/2013/11/21/quasi-partnership-model-may-help-big-banks-mitigate-risk/) -- “'I do think the system that (Mandis) suggested is pretty close to what they have at Goldman right now,' said [Smith](http://www.stern.nyu.edu/faculty/bio/roy-smith), a former Goldman Sachs partner himself, who cited that under the bank’s current compensation plan, partner-managing directors are paid a bonus amount equal to 1 percent of pre-tax earnings. In addition, should the bank suffer regulatory fines, they are also liable for part of the payment."

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