Headhunters Saying Merry Christmas With A 50% Bonuses Up


2021 has not been a normal year. A final proof of its abnormality is that the standard seasonality of the banking recruitment market seems to have been knocked down. Headhunters say they see up to three times the usual level of activity in the fourth quarter. Since few investment bankers will look around us in December of this year in anticipation of a disappointing bonus round, that means there are companies out there that are ready to buy out the entire 2021 compensation package, effectively paying for work they never got. And according to Kevin Mahoney of Bay Street Advisors, they’re paying a premium for doing it – MD bonuses are rising 20-30% industry-wide, but some banks are willing to pay total compensation increases. up to 50%. in hottest sectors like technology and healthcare.

Not only that, but customers are increasingly asking for ‘lift-out’ offers. This is where you hire a senior MD and simultaneously make offers to all of their direct reports. Banks are often a little nervous about doing this sort of thing – it makes your competition very angry, and there can be some tricky legal issues raised if it’s too obvious you’ve coordinated the move.

But, for investment banking managers who started the year with a cautious mindset and are now catching up, it is unthinkable that they don’t have enough staff right now. The deal pipeline for January looks just as strong as it was in 2021, and every month in 2022 that you are understaffed will be full of missed income opportunities. It appears that department heads are streamlining their December hiring strategies on the assumption that even if they pay a little too much, they should come back in terms of earnings.

It could be a risky move, of course. Anyone who makes an offer today will do incredibly well to get things done by the end of the year. And given that the vast majority of doctors will need to take a three-month gardening leave, that means your expensive new rental will walk through the door at the end of March. With the time it takes to give everyone their new phone number, produce new pitchbooks, etc., a new rainmaker will aim to generate income in all market conditions in late April – potentially mid-May.

This is important if you are a banker, because the other difference from previous hiring cycles is that there appears to be much less use of multi-year guarantees. This means that year-end hires aren’t as expensive as they seem, because while there is an initial signing bonus, there is no commitment for 2022 (as of- beyond a certain degree of unenforceable “hint”) and certainly not for 2023. one of those big deals would be well advised to line up some quick wins to impress the new boss as soon as possible.

Elsewhere, Spear’s, the magazine for truly wealthy people, ends the year in a philosophical mood by asking “What does it all mean“? Of course, it’s better to be rich than poor, if only for financial reasons, but once you become a very wealthy individual, does it have to be good if you want people to respect you? The answer seems to be yes.

Most of the people who carry the philanthropy message are successful bankers like John Studzinski and Guy Hands. But Morris Pearl, former BlackRock MD, conveys a full lifecycle of what it’s like to feel rich. When you are very young, that means being able to buy a fancy deli sandwich. A little later, he owns a nice house in the suburbs. Once you’ve had kids, wealth means being able to tell them that they don’t have to worry about paying for college. And then finally (we think a few middle steps may have been skipped) you start to feel really rich when you have so much philanthropic activity going on that you have to hire staff to handle it. What is actually most interesting is that none of the interviewees seemed to use the traditional banker’s measure of what it means to be rich; have that little bit more crucial than the person on the desk in front of you.

This is our last morning coffee until January 4th. I wish you all a healthy Merry Christmas and a prosperous New Year. See you in 2022!

During this time …

Cover up when you’re away from your desk and think twice before having a big in-person meeting – Morgan Stanley gives new instructions on hoping the omicron variant will still be around for the new year . (Bloomberg)

Apparently, one of the reasons so many senior finance executives are considering running for political office is because they are following in the footsteps of former Carlyle Group Glenn Youngkin, who was elected governor of Virginia last month. and proved that being a banker is no longer political Kryptonite – popular villains these days are social media executives and opioid producers. (Financial news)

The company is not commenting and Morgan Stanley’s review of its losses on Turkish lira options in 2019 has not been released, but the fact that Rodrigo Jolig is no longer working there (his boss Thiago Melzer has left the company. company in June) suggests that a few career-limiting moves have been made. Documents filed by FINRA suggest that “communications regarding companies using an unapproved platform” may have been involved. (Bloomberg)

Aggressive activist investor Dan Loeb is not particularly happy to have aggressive activist tactics against his own London investment fund; the president resigned after “juvenile” threats to pursue his other business interests from an activist investor. (FT)

An overview of the world of wealth management in Asia – Wei Mei Tan joins HSBC after working for UBS, Credit Suisse, Deutsche Bank and JP Morgan, as well as for a fintech and the Singapore sovereign wealth fund. (Finews Asia)

Bill Ackman is being sued by some retail investors, but his Reddit fan club is still steadfast, even though the plaintiffs use their posts as evidence. (Institutional investor)

Download our full salary and bonus survey here.

Do you have a confidential story, tip or comment you would like to share? Contact: [email protected] first. Whatsapp / Signal / Telegram also available (Telegram: @SarahButcher)

Please indulge us if you leave a comment at the bottom of this article: all of our comments are human moderated. Sometimes these humans may be asleep or away from their desks, which may take some time for your comment to appear. Ultimately, it will – unless it’s offensive or defamatory (in which case it won’t.)

photo by Kelly sikkema to Unsplash


Comments are closed.