How much do junior bankers earn now? If you're lucky, you'll make around £67k in your first year as an M&A analyst in London. If that sounds generous, it is - except junior M&A bankers are notoriously hard working and a year in a junior M&A role might seriously mess with your health. People looking for a quieter life might want to consider compliance. Financial News reports that jobs in compliance are booming and junior salaries of £65k a year are not unheard of.
All sorts of banks are hiring in compliance. JPMorgan is hiring hundreds.Deutsche Bank is hiring 500 compliance staff, Citigroup is spending an extra $200m-$300m on its compliance function this year. Financial News says banks aren't alone in sucking up compliance professionals - asset managers and insurers are inhaling them too. "“Some firms are getting 50 to 60 people in at a time," said Andrew Adams, head of compliance audit and operations at McGregor Boyall. Salaries are rising. People with one year to eighteen months' experience are reportedly being recruited on inflated pay packages. Financial News points to a job currently being advertised by an 'Asian bank', which is offering £65k a year for a 'Compliance Guideline Monitoring Associate.' Compliance experience is preferable, but the bank is reportedly prepared to consider someone who's interested in compliance and has had some exposure to it in another area. In the long term, compliance won't pay as well as M&A, but you might keep your social life and sanity.
Separately, Winton Capital Management is recruiting too, Winton chief executive David Harding appears in the Financial Times today and reiterates the fund's plans to recruit 100 people for new offices in London (Hammersmith), New York, Tokyo and Sydney. Winton has been hiring for a while. Traditionally, it's hired a lot of academic physicists, but now it seems to be hiring some infrastructure (compliance) staff. If you want a job, the best person to talk to there appears to be David Carrier, a former headhunter turned in-house recruiter who's tasked with Winton's strategic expansion. Just don't refer to Winton as a hedge fund, and certainly don't suggest it's a commodity trading advisor (CTA). “We are not a f***ing CTA,” Harding said in his interview with the FT. “We are building the infrastructure to set ourselves up as a fund management company rather than being seen as a hedge fund,” he added. "I just want Winton to be known as an international investment manager.”
In 2011, KKR poached a group of prop traders from Goldman Sachs to set up a hedge fund. Now it’s shutting them down. (Reuters)
Outbreak of poaching in the accountancy market. Tax accountants are popular, as are M&A professionals in accountancy firms. (Financial Times)
This is the age of the ‘senior relationship manager.’“SRMs may once have reported into heads of sales, but they are now sitting at a much higher level. They are working with heads of markets and chief operating officers to really understand what a bank’s core client base is and how they can take wallet share from rivals with those clients.” (Financial News)
Kanav Bhagat, who was head of U.S. rates trading, will become global head of rates at JPMorgan. “This team will focus on monetizing the opportunities made available by changes in market structure and the competitive landscape while also continuing to aggressively grow our client franchise,” said the bank. (Bloomberg)
Bad news for UBS bankers in APAC: centre of power is shifting away from Sydney to Hong Kong. (IFR Asia)
At no point did Brady Dougan contemplate resigning. (Financial News)
BNP Paribas made a $1.1bn provision for its $10bn fine in February (Financial Times)
Employment aspirations of Harvard Graduates show where the next bubble is. (Washington Post)
What happens who you have a jock culture: politically adept, mediocre players. (HBR)
There is an investment banker at Morgan Stanley (in the transportation group) who has worked there for 40 years. (WSJ)
The story behind deal toys and the angst they cause junior bankers charged with commissioning them. (Financial Times)
A gold-plated Ferrari drives through Kensington... (Twitter)
John Prescott is selling one of his two Jaguars. (Hull Daily Mail)