A tantalizing presentation leaked by disgruntled Goldman Sachs analysts over 100-hour weeks, declining mental health and threats to quit, has aroused little sympathy among City’s bankers.
After all, grueling hours are a rite of passage for bankers.
“Honestly, I did all that and then no one cared,” said a London-based investment bank director of the survey – an 11-page presentation by 13 Goldman analysts examining the problems of those working in the lower grades.
The document has garnered an explosion of attention online and has sparked a debate as to whether complaints about such conditions are justified among workers with sky-high salaries and bright future career prospects. Goldman has said it has met with the 13 analysts and their colleagues to discuss what could change. The analysts suggested a limit of 80 hours and a “pencils down” policy for presentations 12 hours before a meeting. The bank is also hiring more analysts and will try to automate more work.
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“Should I feel sorry for them? No, there are 10,000 people who want their jobs and they get paid more than any other industry. This is what we’ve all had to go through,” said another director.
“Goldman’s presentation shows a legitimate problem that has existed for many, many years,” said a director of a major US investment bank. “The news here is that nothing has changed, and it won’t.”
A global head of investment banking at a major European player admitted that the pandemic has been harsh on junior staff, particularly those who joined during the Covid-19 lockdown conditions and faced a massive increase in workload.
“Everyone is exhausted,” he said, adding that he organized a round table with 100 juniors, who expressed concerns about the durability of the hours. “The activity is booming, and it is a great challenge for everyone at the moment.”
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Subordinate bankers have struggled during the pandemic. In August, juniors contacted by FN said they were nearly burned out as directors expected to always be online. JPMorgan has begun virtual boxing lessons and ‘escape room’ games to keep juniors engaged this year, while Citigroup, Goldman and UBS have all tried to provide better access for senior bankers.
And despite mounting stress, banks have been exceptionally busy. Investment banking revenues were $ 194 billion last year, up 29% from 2019 and the best performance in a decade, Coalition found. By 2021, investment banks will have made nearly $ 25 billion, which promises to be a record start to the year, according to Dealogic.
A senior banker admitted that the departure of analysts and employees has increased in recent months as workloads have increased during a record contract flow. “I tried to hire two people last week. One had already quit and the other wanted to leave the bank completely,” he said.
The brutal life of junior bankers has been highlighted at various points over the past 10 years, but insiders suggest that nothing has really changed. In 2013, the death of Bank of America intern Moritz Erhardt – who succumbed to an epileptic seizure after working 72 hours straight – prompted banks to limit working hours, including protecting weekends. Meanwhile, a 12-year study by Dr. Alexandra Michel, a former Goldman Sachs investment banker turned academic who has done extensive research into the industry, revealed a litany of health problems among young bankers who worked grueling hours.
“Analyst turnover is increasing year on year as exit opportunities abound alongside this generation looking for a more rounded existence,” said Logan Naidu, CEO of bank recruiters Dartmouth Partners, who focuses on junior and mid-rankings. bankers. “The analyst recruitment market is definitely very busy and there is a combination of growth and replacement hiring.”
At the lower level, banks are moving people who work in less crowded areas to areas where deal activity is on the rise. A senior banker said he had a team known internally as the ‘Avengers’ – a reference to the Marvel comic book characters where a group of disparate superheroes unite to deal with a crisis – who would usually engage in mergers and acquisitions. work and during busier times. In the past year, this was not possible because all units are running at full capacity, he said.
“Sundays are occupied with work and everyone works super late every night,” said a director of an American bank. “It’s almost unfair to focus this on juniors only, but admittedly, they leave more than others.”
US investment bank Jefferies sent a memo to its 1,124 analysts and employees worldwide on the day the Goldman presentation leaked, saying it would offer them an annual subscription to a Peloton bike, a home training system, or an Apple Watch as a sign of its “deep appreciation” for their work over the past year.
“If Goldman really changes, the other banks will have to follow suit,” said a junior banker on condition of anonymity. “Analysts are quick and can do the same job at any bank.”
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