Big investment banks are allegedly ‘dumbing down’ – dumping senior staff and promoting mid-ranking professionals in an effort to save on expensive salaries. At M&A boutiques, however, the opposite may be happening.
The Financial Times reports that Moelis & Co, the independent U.S. investment bank has slashed 20 mid-level jobs in London and New York whilst making a $35m windfall payment to its most senior staff.
The jobs were reportedly eliminated following Moelis’s semi-annual review, which identified low growth areas. The $35m cash windfall is reportedly being shared predominantly between Moelis’s 100 managing directors, who together own more than 85% of the company but are unable to cash-in their stakes as Moelis isn’t publicly floated.
Anna Khazen, 38, and Brian Neer, 40, will now lead Morgan Stanley’s combined European credit business. Angelie Moledina has been named sole head of the firm’s European liquid flow rates business. (Bloomberg)
Jefferies Group has been ordered to pay its former Asia equity trading head about $1.86 million for firing him over a newsletter which referred to a Hitler parody video. (Bloomberg)
The Volcker Rule is limiting banks’ ability to offer staff the option to make lucrative investments in banks’ own funds. The top 100 executives at Goldman Sachs made $14m each from these investments last year. (Wall Street Journal)
Deutsche Bank paid Timothy Geithner $200k for a speech. (Financial Times)
Geithner earned $200k in a year as US Treasury Secretary. (Huffington Post)
What should I do if I’m offered a promotion but no pay rise? (Financial Times)
Bank of America’s Twitter account is run by a stupid robot. (Gizmodo)
What really makes you happy. (Farnam Street)
Why successful people get up insanely early. (Fast Company)