Photo: Flickr via Mel B.
30-year old Nick Leopard and 27-year old Andrew Blechman found that the work-life flexibility was lacking in their jobs at Bear Stearns and JL Berkowitz, a hedge fund.So they founded a solution – Accordion – a temp company for i-bankers with three to seven years experience at bulge bracket banks.
It sounds great – their employees get full health benefits, they pick and choose their own assignments, they make their own hours.
But then you get to how much they’re paid:
[Temps] are paid cash based on prevailing Wall Street rates. Since they average 60-hour work weeks versus the typical 80- or 90-hour weeks at bulge bracket firms, their hourly take home is comparatively higher, Accordion says.
They also don’t get bonuses like typical bulge bracket bankers, where associates and vice president make most of their pay in unpredictable year-end cash and/or stock payouts.Instead, Accordion sets its pay to be commensurate with what a bulge bracket banker would get throughout the year, if that year-end bonus was paid out over 12 months.
So basically, everyone gets paid a lot less.
Takeaway: Becoming an i-bank temp is great if you’re looking to launch a start-up, like so many Wall Streeters have done before, because it’ll get you health insurance and a pay check. But otherwise, this temp job has none few of the benefits of working on Wall Street. Not the money, and in most cases, not the connections.
Read more about the company in the Wall Street Journal >
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