Has Wall Street fired itself out yet? Probably not, but the job market appears to be incrementally improving, at least for the crème de la crème. For the first time in years, big banks are genuinely worried that rivals are going to poach their top talent.
Financial News is reporting that competition for talent has become a legitimate concern for some on Wall Street. Fears have been stoked to the point that executives have begun discussing this year’s bonus pool, knowing that most hiring would likely occur in the New Year after bankers cash their bonus check. Bank of America, Citigroup, J.P. Morgan and Barclays are all expected to make strategic hires in the coming months.
While the report is good news for some, it also shines light on a two noticeable trends. More than ever before, big banks are taking care of their top talent, allowing more middling employees to struggle. While banks have been discussing bonus plans as part of their retention strategy, the overall bonus pool is actually expected to decrease this year. This means rock stars will get theirs while the rest will likely see a healthy cut in compensation.
In addition, the news highlights the fact that most banks are ideally looking to hire people who are already employed. With fewer seats available and the talent pool bigger than ever, banks are going after the guy, not a guy. If you’ve been out a year, the environment appears no better.
Michael Desmarais, Goldman Sachs’ global head of talent acquisition, has agreed to respond to all your career-related inquiries. You’ve got until Wednesday Oct. 30th at 5 p.m. EST to ask him anything you’d like. Click the link for details on how to deliver your questions.
Skybridge Capital’s Anthony “Mooch” Scaramucci is fed up with the Department of Justice and the SEC’s “witch hunt” for corrupt bankers. “I know you guys didn’t get the Madoff thing right. You went in there and investigated him several times and blew it. So now you’re on a witch hunt for everybody. Why don’t we just stop it at this point?” he said.
A settlement between regulators and SAC Capital over insider trading charges could be announced as soon as this week. Expect a guilty plea and a fine north of $1 billion.
Some Goldman Sachs employees have become upset with the bank allocating more resources to its giving initiative while cutting compensation and other expenses. Moreover, many aren’t pleased with the annual salary of the foundation’s head, Dina Powell, who takes home roughly $2 million per year.
Blackstone Group President Tony James sold 3.25 million shares of company stock this month, marking the third time this year he has lowered his stake in the private equity firm. Still, he said he has no plans to leave the firm.
More than 40% of chief compliance officers at hedge funds have hired more than one new team member over the last two years. COOs are now spending 50% more time on compliance.
The struggle between automation and the more human parts of finance may have reached a new front: securities analysis.
Buzz Around the Office
Workload has no real effect on workplace depression, according to a new study. It’s the work environment and leadership that causes employees to sing the blues.
List of the Day: Hidden Networking Opportunities
Networking opportunities are everywhere if you know where to look. Don’t be afraid to reach out when in one of these places.
- The unemployment office.
- Children’s sporting events (probably best to actually have a kid).
- At the gym.