Goldman Sachs is using a tough new compensation policy to encourage its Private Wealth Management Group to go after truly high-value accounts exclusively.

The Wall Street Letter is reporting that Goldman has adopted a fee-based structure and has stopped a discretionary pay-out, which was paid in either restricted stocks or cash. The firm is also paying out more to larger accounts and less to smaller ones, according to an industry recruiter.

Accounts with more than US$25 million under management will bring a 48% pay-out, and the pay-out on accounts that have less than US$5 million under management has been cut from 20% to 10%. Compensation for mid-sized accounts remains unchanged.

Recruiters are telling the WSL that Goldman’s average pay-out is 36%.