UK
Last month, as I summarized my analysis for the Board of Directors of a small brokerage firm, a fellow external attendee asked me, “How long have you been a consultant?” Voila, my new business, Robinson Godding Associates, was born.
Despite Mr King’s concerns that I have “squandered” my life pursuing a career in banking, it seems eminently possible to put what I’ve learnt to use in a new career, much as my former colleagues were able to transform a maligned BBB credit into AAA.
Since forming my consultancy firm, I have taken on a number of assignments. So far, as well as the above business analysis, I have written the business plan for an internet start up , proposed a public relations programme for an environmental charity, and chaired a successful fundraising event.
I have also come to the conclusion that working outside a bank is very different, in ways large and small.
First, there is no IT guy that can be summoned to instantly fix my computer so as not to waste any precious potentially profit producing moment.
Second, there is no morning meeting during which to drink coffee and plot the potential for the day’s profits with my colleagues.
And finally, there is no pre-established identity.
This last problem was quickly solved by Prontaprint in Notting Hill, where I was able to order my very own business cards, with my very own company name: 200 cards for 50.
However, while leaving investment banking does have its travails, the benefits outweigh them: a toaster next to my Mac, coffee with friends in the morning and the satisfaction of working for myself.
When I look at the rewards of the past 12 months and compare them with what I would have received had I stayed at Bank of America (likely working in difficult conditions and then being made redundant last week and paid no bonus), I think I clearly made the right choice to leave.
Whether I continue to think so depends more on what I make of my life than the corporate environment in which I find myself. I am happy being long those odds.
Diana Godding was managing director and head of US cash equities for Europe at Bank of America before retiring from the business in April 2008. She established her consultancy firm, Robinson Godding Associates late last year. She is currently writing a book, Anglophilia, or London as the Zeitgeist of the Noughties, to be published in late 2009.
Interesting article and well done you for making it work…however….
before people run off to set themselves up as Consultants they need to be able to write concisely and intelligently and be pro active
Unfortunately i see all too may Bankers who clearly cannot write and who would be terrified about going out on their own without the security blanket of a big organisation to protect them
What does it pay though? Every consultant I know gets multiple times less anyone working at a decent bank – it takes about 5 years at the top consultancies like McKinsey and Bain to make a mere 6 figures – what any decent 23yo banker makes. Consultancy = banking without the pay. Why would anyone do that? Oh and don’t say job security, if you’re good you don’t lose your job, period.
Just how much M&A are you doing at the moment?
M&A M&A – you are talking about a 23 yo in the sales / trading division of an investment bank. I hardly think a 23 yo in M&A is going to be making a 6 figure sum (all in of course). Not everyone is cut out to go into trading. You are talking about a very small elite. A big majority can still do consulting work.
Not much, and still got a 6 figure bonus for 2008. Consultants work harder than me, longer hours, and get paid several times less. Its an idiotic decision.
@M&A M&A
It doesn’t look good. Expect to get fired in 2009.
M&A, you must be joking or lying….No one works harder than a BB M&A person – unless you are about to be made redundant. In any case, M&A is for those prepared to be burnt out by their mid-thirties – albeit having made lots of cash. On the other hand, if you work for say, McKinsey, your aim is longer term and you’ll probably end up running a large global company and earn just as much cash if not more. Hence the difference is whether you want to become a true “Master of the Universe”, or just “play” at being a master of the universe.
Its not really several times less though is it, you get big bonuses because your salary is weak. In addition, in all seriousness the work is terrible and if the company you are working for actually had a business pipeline then the IB hours are a joke. However, instead of hiding behind all this chat lets just cut to the chase and measure bodily size to see who is the bigger man.
“I hardly think a 23 yo in M&A is going to be making a 6 figure sum (all in of course).”
Hahahaha. Hahaha. Ha. I know 21 yr olds who made 100k+ in M&A in 2007. No doubt even in this environment being in M&A 2-3yrs you’ll COMFORTABLY be on a nice 6 figs. Some of you are SO deluded and out of touch.
“@M&A M&A
It doesn’t look good. Expect to get fired in 2009.”
You know, after just being told I’m one of the highest performers of my year, a raw natural talent, how they fought to keeo me when I previously got headhunted, I don’t have any worries at all about getting fired. They can fire 75% of the workforce and I’ll still be there. These assertions that anyone in banking is vulnerable are pathetic – good people at good banks are safe.
“No doubt even in this environment being in M&A 2-3yrs you’ll COMFORTABLY be on a nice 6 figs”
You know, I never realised it until just now…but some people really do live in a world of their own. Mate, where exactly are the deals???? Paid 100k+ for what exactly? In this current environment which bank is going pay any M&A analyst with 2/ 3 years experience 100k+? What are you smoking?
@Reality
Yes, because 21 year olds earning 100k is really in touch and not very deluded at at all, is it? Hahahaha. Hahaha. Ha.
Guys,
Reality is just doing it to wind everyone up. I don’t know why some people never grow up or are unloved as children but because of it we get comments such as those from Reality.
Quite tragic really.
The more you don’t believe me, the more I feel sorry for you – working at state-bailed / 2nd-tier banks in weak areas clearly if you think my numbers are false. I just showed this thread to peers of my calibre and they’re all in stitches at how out of touch you are. Oh well, each to their own, you carry on living your life of five-figures, we carry on making a killing buying bargain properties and renting them out, enjoying fast cars and quality holidays.
Reality…your post interests me.
Which M &A sectors are strong right now? Which sector is announcing and carrying out deals?
Please enlighten me.
I’m a back-office pleb in Operations and even I clear 100k p/a. It’s not that outrageous. I’m 27 by the way.
Juande, you mean you “clear” 100k p/a as part of your job, right?
Juande, don’t just walk and try to swing your schlong around! Is that what you actually got paid this year? I can understand you are either one of these useless antipodian temps (billing 30 an hour for crap work and paying no tax is not a career) or you may have been part of the team and paid a 50/60k salary plus bonus of 80-100% for 2007 which is also plausible with a western money supply that was inflated by a few trillion dollars. However the world is now a different place so thinking you were actually worth that amount and will continue to be paid at that level is just incorrect!
Jumanji – very funny :-) Bored – I jest, I thought i’d write a bunch of crap seeing as everyone else is! I am part of the team, and my salary is in the 30-40k bracket, so hopefully that’s made you feel better. I’m more than happy with my lot.
totally stupid. I was a VC earned around 150 000 euros per year and now as a consultant between 2 X and 3 X my previous salary. Risk and pro activity for its own business will always pay far more compare to employees. Some exception : still a few happy people during bubble or having big bonus but pareto is still valid : 80% under 200K€ should become consultant , earn more , be free and more happy
I am a consultant, I work for my self, and the odd client. Life is not easy, because as a one man band I have to do all the selling, then the assignment, the report writing, the recommendations, then the selling again. Pay is intermittent, Nice a big when it hits, 20k – 50k, each time but not always evenly spaced, have six big assignments now but nothing from Sept-Jan. SOOOOO… Stay in a bank if you can, move to another one if you can’t but don’t enter into my market, it is hard enough as it is. Had to work 25 hours last week, nearly had a heart attack.
Consultancy is more long-term, you build a career in it and don’t finish when you are 30, you get on 250K basic at 45 after 15 years experience. It doesn’t pay as much as a bank, but Jesus its more rewarding, especially a pure strategy project. I’m 27 – two years experience (out of FTSE 100 Graduate Scheme) and I earn 45K Basic, Bonus around 5-10%. Consultancy does NOT have a bonus culture as everybody moves around after two / three years, so its ALL really about the basic, which climbs fast after 5 years experience. A 30 year old should be on 75K + Bonus.
Simon, what hope is there for a 35 yr old MBA graduate with no consultancy experience to break into the field?
Looks like M&A M&A ist what they used to call a “big swinigng d…” in the ’80′ties. Fact is, if your any good (at any job) then you`’ll be able to make that 6 figure salary as a consultant per annum and still have half a year thinking up of ways to spend it and don’t need to get into any p…. contests with your peers at any bank just trying to keep the job – no matter how old, and living in the office ,-)))
That is an exact no BS presentation of the industry Simon. Roger regarding getting in, although the big firms are still hiring they are doing so in reduced numbers and are only targeting the top schools on their panel. Did you not get a chance to apply during the MBA milkround?
Finished in June last year and did not apply to consulting but now the job I’m in sucks (Asset Management). Feel consulting would use my MBA knowledge and skills much better as well as be personally rewarding. Also went to a second tier B-school. Any advice?
What do you think of the likelihood of a 35+ yo MBA grad to start a career in trading/structuring, with no previous FO experience? Is it too late to start a FO role at this age? How much potential can this give if market picks up?
I left banking several years ago, mainly because I thought I would do better on my own. In the end I actually did and still do but initially there was a price to pay. I was lucky never to work in a commercial bank or a bank owned by one, so it came relatively easy to me to operate my own business and become even more self-reliant. But it took time.
I consult upstarts and restructuring small and mid-size businesses in the financial services industry. Many of them cannot afford large fees. They are, however, open to success-based ongoing performance fees, and in some cases even small non-controlling stakes in the company. Also, there are a couple of funds out there that pay me a share of their management fee although I haven’t been involved with them after they have been set up.
The hard part was to plunge in, take the risk, and live on relatively small and rather infrequent project fees. Couldn’t have made it without start capital and considerably cutting back on living expenses. I made less than my former colleagues for some years and that really made me look bad at times.
But now, yeah, 25 hour work weeks nearly give me heart attacks as well, cheers G R Wilson!
“Simon, what hope is there for a 35 yr old MBA graduate with no consultancy experience to break into the field?”
Your hopes were extremely high up until mid 2008 (not so sure at the moment, but that will change,). Many consultancies will look at you at anytime of the year, and many LOVE people from non-consultant back grounds. Best to go through a Recruitment Consultancy. At the moment many consultancies are fairing well. Consultancies are very good at changing their operating models over night. So at the moment (follow the money) no its all- cost reduction – share services – Solvency II, regulation etc is very in vogue.
Don’t just look at the Accentures / Big 4 / Bain etc. They have the brand, but many niche players pay more at junior to mid level.
There is a whole second tier of consultancies e.g. Cap Gemini (bought some of the E&Y consulting arm), Atos Consulting (what was KPMG Consulting), Towers Perrin etc.
From my experience the best management consultants are those that go in at 28-30+ after a good 5 years in say banking / insurance company / blue-chip / FTSE 100 etc. I am not a fan of consultants who have never had a real job (e.g. Accenture Clones).
I don’t understand M&A M&A’s comments at all. Seem to be more interested in glorifying himself rather than to be able to have rational and logical clear thinking discussing two different types of work.
Besides, I think it is humble time time for all bankers…your ways of doing and clearly have a seriously damaging and value destructive impact on the societies on a global scale, yet they are weaklings running under Mamma The Goverment’s skirt to be pampered and bailed out because the have made such a mess but do not take any responsibility for it at all. Bankers are like small children playing in the sandbox…that is where they belong…keep them away fromthe sane society…
M&A M&A – You won’t get fired in the next few years…you’ll burn out instead. What is more important in life – your health or the size of your wallet?? Doesn’t matter how much dosh you have mate – you won’t be able to spend it when if you’re dead!!!
Ha, ha, ha.
If any of you were really earning the figures you claim WTF are you doing looking on a careers website…?
You either have
a). No job
b). No deals
c). No life and compensate the loneliness by trawling jobsites telling anyone who’ll listen that you’re actually very succesful…
M&A M&A try speed dating rather than job portals.
I work in just the A part of M & A, I am a first year analyst and I made 200k last year!
Thanks Simon. Will apply and see what happens. If it is meant to be then I will succeed.
M&A
I am a consultant, and no, I do not earn 6 figures but at least I am not as arrogant and spiteful as you are. I bet there is a lot more of your type with no appreciation of anyone’s achievments but your own and where the only reward in life is money. Enjoy while you can…
I do not know any i-bankers who would be competent to go into consulting. No offence to Ms. Godding, but none of the work she is doing is consulting. Some of it is contracting, but mostly it sounds like bumming around until friends take pity and create some “projects” as an excuse for charity.