Investment bankers discover what it means to work for a solid commercial bank.
Dan Freed reports for theStreet.com:
The estimated 4,600 employees from Wachovia’s investment banking division will see bonuses cut 90% this year, according to a manager in the unit.
Though it is widely understood that top executives at Wachovia acquirer Wells Fargo, are opposed to the high compensation awarded to investment banking employees, the drastic size of the cut was still a surprise to some.
“[Wells Fargo Chairman] Dick Kovacevich has said he wants to bring rationality to investment banking pay, but 90% isn’t rational, it’s cruel. What does that say about an institution?” says Rik Kopelan, executive recruiter with Capstone Partnership. Kopelan believes virtually the entire investment banking unit will leave at the first opportunity.