Here’s a sign that Wall Street is looking for a younger, cheaper generation now that it’s forced to lay off staff amid low economic outlooks and a stricter regulatory environment.
A source from Deutsche Bank tells us that the firm hired 80% of its interns in the analyst summer program this year. Other banks, by comparison, hired 30-50%, he says.
Although any hiring in the current situation – tons of layoffs across Wall Street – might seem surprising, Deutsche Bank’s move makes total sense.
Analysts are paid around $100,000 in salary per year. They also work insane hours – 18 hours per day frequently, according to our sources – so it makes little sense to cut them while managing directors are paid closer to $400,000 in salary per year and work fewer hours.
The move to hire more young comes as a shift towards younger workers is happening at many banks. Bankers are now noticing that fresh faces with less experience get new offices while their older superiors get laid off.
Deutsche Bank might have hired more analysts because it seems to be experiencing fewer layoffs than its rivals, suggesting that it’s cost-cutting procedures are less drastic than others’.
We’ve asked Deutsche Bank PR for comment. They haven’t replied yet.