What does the perfect Goldman Sachs hire look like? Is it a man or woman? With blonde or brown hair? Fat or thin? With an excellent academic record or not?
Unfortunately, we can't comment on most of these questions, but we can say that Goldman Sachs has conducted research into academic success as a predictor of success at Goldman Sachs and found that there is a correlation. Quartz reports that Afsheen Afshar, a Goldman MD and 'operations data lead' told attendees at Wharton Business School's 'People Analytics Conference' that the firm crunched some data to identify patterns in the candidates it hires. The results showed that a high grade point average (GPA) - the US equivalent of UCAS points in the UK - is indeed an important factor for Goldman recruits.
Afshar suggested Goldman's 'leadership' were surprised by the outcome. They, "went into the analysis thinking that it might not mean anything," he said, "but it does matter." Interestingly, however, Goldman found that GPA wasn't the only predictor of success. "“GPA isn’t the whole story, but it is part of it,” Afshar said without (unfortunately) elaborating on what the other parts are.
Separately, Financial News has published results to a salary survey it undertook with Emolument, They suggest that the best paying bank in London is J.P. Morgan, which pays its average directors £407k and its average VPs £319k. The best paying financial services job in London is trading, with an average salary of £354k, compared to M&A at £340k.
Thanks to its lesser focus on trading, Morgan Stanley's shares now trade at some 1.3 times tangible book value, compared with 1.25 times at Goldman Sachs. (NYTimes)
“The key to this is we did not dial up risk to generate these earnings,” said James Gorman. The last time Morgan Stanley recorded a double-digit ROE was the third quarter of 2007. (Financial Times)
UBS is making up to 350 compliance hires. They will be mostly located in Nashville, Tennessee, and Krakow, Poland. (Bloomberg)
There were 9,135 finance vacancies (exactly) in London in March. (Bloomberg)
Man who quit banking for senior job in private equity moves back to banking again. (Bloomberg)
The head of FIG DCM at BNP Paribas in Italy just left to join a client. (Reuters)
Would you spend $60k on an MBA, only to work in compliance? (BusinessBecause)