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All is not lost for Allco staff

The final rites were delivered to Allco Finance Group recently when creditors voted it into liquidation, but having Allco on your CV isn’t necessarily fatal for your job prospects.

Al Ritchie, director of Ritchie and Associates Recruitment, says Allco traditionally hired top talent. And after their recent experiences, its former bankers have the ideal experience to evaluate the integrity of an investment deal.

“Any potential employer will know that some of these guys will be better placed than others in the market to recognise high-risk deals well ahead of the pain threshold,” explains Ritchie.

While some employers won’t swallow that argument initially, Ritchie says in the long term, many will recognise the business benefits of hiring quality candidates from the likes of Allco.

John Coles, CEO, Executive Group International, says history shows that corporate meltdowns tend to be more damaging for front office staff.

“A corporate failure won’t hurt back-office staff as much as those near the top, where it can take between one and two years to repair a reputation. Often the best way to return to a suitable role is by offering a discount for your services,” explains Coles.

Luke Heath, chief executive of Chandler Heath Executive Recruitment, agrees an association with Allco isn’t terminal, although future employers will be curious about a candidate’s responsibility in a particular loss and whether lessons were learnt.

“Staff with strong skill sets will possibly find meaningful banking or consulting roles,” advises Heath.

Specialised knowledge like aircraft financing could also pique employer interest, while some junior staff might be attractive to M&A teams when the market picks up, he adds.

Comments (3)

  1. Oh please… if that were true then Stan O’Neal and Dick Fuld should be heading global intitutions. No rewards for failure please – most of Allco (and many other Aus ibanks / fund managers) have shown little talent beyond borrowing lots of money to overpay for assets, has no idea about what conflict of interest or pay for performance really means, acquiition fee hungry / arrogant bunch who fleeced their investors dry.

    Pay for Performance Reply
  2. Agree with Pay for performance.

    These Allco babock guys were MORE LIKE thieves who used bonuses to to shaft and steal from shareholders. Bonuses should be approved by shareholders.

    These guys basically had their hand in the till !! and you want to reward them. i wouldnt hire anyone from Babcock, Allco etc. Its called agency theft people and they are all guilty.

  3. Agree. Many of the Babcock people were unethical arrogant you know whats. Having worked there in finance and leaving promptly, they deserve to forever hold their heads in shame and be guilty for their actions and the grief they have caused shareholders.
    Babcock and Allco were the unfortunate public ones and there are plenty more in other i banks who have managed to survive. Time to change the corporate culture not just false doctrine…it needs to come from the top at an early stage as for some, they like to bend all rules and governance causing the financial mess evident today.

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