In today’s “news that shouldn’t shock,” Bloomberg reports that “Junior Bankers Feel Disappointment With Pay.”
In a study conducted by the headhunting firm Capstone Partnership, “67 per cent identified ‘disappointment with compensation’ as one of the biggest reasons to leave the field.”
One young banker lamented the seemingly broken tacit understanding between banker and employer regarding bonuses: “Considering “‘the sacrifice I make in my personal life (100-hour work weeks, canceled vacations, etc.), this business has to be more rewarding.”
The majority of bankers were also confused and upset at the fact that now, in tough times, the actual profitability of the institutions for which they work affect their now-shrinking bonuses.
Also, not surprisingly, many (60%) would rather be (but for actual passion and willingness to take risk) working in private equity.
In short, then, it appears that the banking employment bubble has, indeed, popped.
Margaret Bogenrief is a Partner with ACM Partners, a boutique crisis management and distressed investing firm serving companies and municipalities in financial distress. She can be reached at [email protected]