Posted on 04/07/2015 8:36:32 AM PDT by SeekAndFind
There was a time when it was possible to ‘retire’ from investment banking in your 30s. That time has passed. As the the trajectory of banking careers changes, 30 has instead become the age at which you must be positioned at a firm that will see you through to your 40s and beyond. Swapping banks when you’re aged 30+ is increasingly challenging.
Headhunters working across business areas bemoan the lack of recruitment beyond vice president (VP) level. “Banks have become incredibly cost-conscious,” says a partner at an M&A search boutique. “They’re not making a 25% return on equity any more – they’re making a 5% return on equity. At that level, they can’t afford to buy out the bonuses of senior staff.”
With banks like UBS and Deutsche deferring some bonuses for up to five years and Credit Suisse paying a proportion of its bonuses in contingent capital which only becomes available after three years, senior bankers now accumulate large quantities of deferred pay, for which they need to be compensated when they move to a new firm. “You’re getting people at senior VP level who have deferrals worth £350k,” says the M&A headhunter. “When you add in their salary, they cost £550k. Banks can’t afford to pay that any more.”
30-something bankers are increasingly stuck working for one firm. “There’s no demand for senior people,” says a veteran debt capital markets headhunter in London. “Getting their buyouts signed off is difficult. Banks won’t swallow the pill.” Another veteran headhunter, who runs a fixed income search boutique, says all hiring now is taking place at junior levels and that senior staff are frustrated as a result: “They don’t have any options. They can’t move – they just have to make the most of life where they are.”
(Excerpt) Read more at businessinsider.com ...
PFL
Sounds like the Obama economy. That companies are not hiring senior level people is pretty widespread.
Good point
Poor babies.
Yep. All wh0res age fast and have a short shelf-life, LOL!
Sell your soul to the devil (big government, dims) and he will call your note due when he wants it.
I have a special flask for all of the tears of the bankers.
The collapse of the credit bubble and the return of oil to a non-speculative commodity have created an empty shell of the banking industry. They no longer wield the economic power they once did. Economics have shifted to the producers, especially energy.
New York and the California Gold Coast will remain the titular financial capital of the country, but the real nuts and bolts financial capitals are Texas and Florida.
NOTE:
This is for ALL industries and jobs.
Bias against older workers is very much alive wherever you go.
a 50+ year old is going to be denied access to opportunities just on age alone.
FOOTNOTE:
illness Right to die,
illness Duty to die,
Unemployable burden Duty to die.
What’s anti-capitalist about saying money by getting rid of employees with skills that are no longer needed?
RE: This is for ALL industries and jobs.
Bias against older workers is very much alive wherever you go.
a 50+ year old is going to be denied access to opportunities just on age alone.
________________________________
If this is so, I would expect that most of those who are unemployed and underemployed and those who are not counted as participants in the labor force participation rate would be older folks.
However, the labor participation problem in this country is not even in their age group. It is the YOUNGER ones who are having problems with jobs.
Low skill jobs are usually vacated as older workers move up the ladder of promotion. There is no promotional ladder anymore.
There are no benefits.
Older workers keep their low skill jobs.
Those older 50+ white collar workers who are out of work are SOL. Often they were self employed so they will never appear in a government statistic.
Older contractors? executives? managers? are invisible to the “woman of Wellesley feminist studies graduate” running the human resources department. (ok a bit dramatic)
just do not underestimate the pervasiveness of age discrimination.
But "Up or Out" is still very much around.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.