Breakups are never easy, and today sees the publication of a very long breakup letter. Why I Left Goldman Sachs: A Wall Street Story is a memoir written by former Goldman employee Greg Smith. It follows up on Smith’s poison pen editorial of the same name, published in The New York Times in early March 2012. The consensus? Goldman Sachs’ board members can sleep easy.
Greg Smith used to be in equity derivatives sales. In upper management, he earned a more than respectable living of around $500k. Disillusioned by the alleged cynicism and hypocrisy of a culture that did not put clients first (supposedly referring to them as “Muppets”), Smith became more and more disenchanted, so goes his narrative, until one day the moral bankruptcy of the firm caused him to quit.
With Smith receiving a reported $1.5 million book advance for a memoir about his time at the firm, Goldman Sachs was presumably worried. But his former employer is now indicating that Smith’s memoirs are not as damaging as originally expected. Some of his reminiscences may not be pretty, but there’s nothing illegal or that surprising about them. As for Smith’s credibility, it seems GS has had its own well-executed PR plan to raise a cloud over their ex-employee’s widely reported griping.
The PR Verdict: “B” (Good Show) for Goldman Sachs’s softly-softly response in advance of publication.
The PR Takeaway: Say what you need to say once, and then let others do the talking. In advance of Smith’s book launch, Goldman Sachs made available its 18-page internal report on Smith’s allegations to newswire Bloomberg. The report reveals that prior to resigning, Smith allegedly wanted a 100 percent pay raise, was denied a promotion, and may not have been long for the firm. The report’s contents were widely repeated – not by GS, but by the media. The nagging doubt is now that Smith may have just been a disgruntled employee. No on the record comment from Goldman Sachs, but a volte face from the very media that covered the story in the first place. Now that’s effective PR.
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What’s your opinion of Greg Smith’s book, and Goldman Sachs’s response? Give us your PR Verdict!