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Morning Coffee: The top 50 MBAs that impress finance professionals, how to leave a private equity job and not lose out

Victory

Most MBA rankings tend to focus on, among other things, the earning potential and employment prospects of those who have graduated from individual business schools. Business Insider has taken a different approach – asking its readers (38% of which work in finance) which schools have the best reputation and then filtering the results to include only those voters who actually hire MBAs.

The results, in truth, are relatively predictable. Harvard tops the rankings for the second year running and Stanford comes in second. Yale, though, has dropped from 2nd in 2013 to 11th in this year’s rankings.

So, which schools have supposedly gone up in the world over the past 12 months? Notable risers include Wharton (12th to 3rd), Sloan (7th to 4th) and Chicago Booth (25th to 5th) in the U.S., and the London School of Economics (19th to 8th) and London Business School (29th to 9th) in the UK. Oxford Saïd (13th), INSEAD (15th) and Cambridge Judge (19th) were the only other European schools to make the top 20.

Separately, if you thought exiting an investment banking job was tricky because of compensation tied up in deferred cash and stock options, try leaving a private equity role where carried interest (a cut of the fund’s profits) is the main money maker and it can take years to pay out.

It’s not uncommon for private equity firms to ask their senior staff to go on gardening leave for two years in order ensure they end up with their fair share of profits. Financial News highlights the case of Chris Warren, who is currently suing his former employer, ECI Partners for $3m in lost earnings.

ECI classifies departing employees as ‘good’, ‘intermediate’ or ‘bad’ leavers, depending on the circumstances of their exit. Warren says he served his contractual three months’ notice and so should have been considered a ‘good’ leaver and received his full entitlement of carried interest.

His former employer says that his decision to leave when the firm was preparing to launch a new fund destabilised the partnership. He was therefore deemed an ‘intermediate’ leaver.

The problem, according to various commentators, is that there’s seldom a good time to switch jobs. Head for the door before a fundraising and it’s considered a “betrayal”, leaving afterwards is a “betrayal of investors”, so somehow finding the sweet spot when the firm is in the middle of raising cash is the least bad option…

Meanwhile:   

Deutsche Bank has poached a director in high yield trading from Credit Suisse (Bloomberg)

International mobility for same sex couples is a tricky issue for companies which struggle to secure visas for employees’ partners. (Financial Times)

Credit Suisse has hired Shahab Jalinoos from UBS as head of global foreign exchange strategy (Business Week)

Piketty was right – the rich are richer than you think (Bloomberg)

Carl Teece, who was promoted into the newly created role of head of precious metals at BNP Paribas as the bank made a push into commodities, has now left the bank (Financial News)

High-profile hedge fund manager asks employees to take a bullet for him. In the same meeting he ordered his assistant to find a storage facility for his dog’s semen. (Dealbreaker)

Related links:
CFA or MBA: Which is best for a finance career?
Pass or fail the CFA level I, this is what you should be doing next
When the MBA managing you is incompetent

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