A harsh presentation, revealed by dissatisfied analysts at Goldman Sachs, which describes 100-hour weeks, declining mental health and threats of resignation, has attracted little sympathy from City bankers.
After all, exhausting hours are a banker’s rite of passage.
“Honestly, I did all this and no one gave me money at the time,” said a general manager at an investment bank in London about the investigation – an 11-page presentation by 13 Goldman analysts that highlighted the struggles of those working in lower rows.
The document has sparked an explosion of online attention and sparked a debate over whether complaints about such conditions are justified among high-paid workers with bright career prospects in the future. Goldman said he met with the 13 analysts, as well as their colleagues, to address what could be changed. Analysts suggested an 80-hour limit and a “pencil” policy in presentations 12 hours before a meeting. The bank also hires more analysts and will seek to automate more work.
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“Should I be sorry for them? No, there are 10,000 people who want their jobs and are paid more than any other sector. This is what we all had to go through,” said another general manager.
“Goldman’s presentation shows a legitimate issue that has existed for many, many years,” said a general manager at a large US investment bank. “The news here is that nothing has changed and will not change.”
A global head of investment banking at a major European player acknowledged that the pandemic has been difficult for junior staff, especially those who joined in the Covid-19 blockade conditions and had to deal with an increase in workload.
“Everyone is exhausted,” he said, adding that he hosted a roundtable with 100 juniors, who expressed concern about the sustainability of the classes. “The business is booming and very challenging at the moment for everyone.”
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Junior bankers fought during the pandemic. In August, the juniors contacted by FN said they were close to exhaustion, as executives expected them to be permanently online. JPMorgan has started virtual boxing lessons and escape room games to keep junior employers this year, while both Citigroup, Goldman and UBS have tried to give more access to senior bankers.
And amid growing stress, banks have been extremely busy. Investment bank revenues reached $ 194 billion last year, up 29% from 2019 and the best performance in a decade, the Coalition found. In 2021, investment banks earned nearly $ 25 billion, which promises to be a record start to the year, according to Dealogic.
A senior banker acknowledged that the departures of analysts and associates have increased in recent months as the volume of work has increased amid record flow of transactions. “I tried to hear two people I hired last week. One has already given up and the other is looking to leave banking altogether,” he said.
The brutal life of junior bankers has been highlighted at various points in the last 10 years, but insiders suggest that nothing has really changed. In 2013, the death of Bank of America trainee Moritz Erhardt – who collapsed after an epileptic seizure after working for 72 consecutive hours – prompted banks to impose working hours limits, including protecting weekends. Meanwhile, a 12-year study by Dr. Alexandra Michel, a former investment banker at Goldman Sachs, who has become an academic and conducted extensive industry research, showed a litany of health issues among junior bankers working hard hours.
“The analyst’s appeal has grown year-on-year as exit opportunities abound, alongside this generation looking for a more rounded existence,” said Logan Naidu, chief executive of Dartmouth Partners Banking Recruiters, which focuses on lower-ranking bankers. and environment. “The analyst recruitment market is certainly very busy and there is a combination of growing and replacement employment.”
At the junior level, banks usually move people working in less busy areas to those where trading activity is growing. A senior banker said he has a team of people known internally as “The Avengers” – a reference to Marvel comic book characters in which a gang of disappearing superheroes join forces to deal with a crisis – who would work in usual to M&A transactions and would move to restructuring during busier times. In the last year, this has not been possible because all units are operating at full speed, he said.
“Sundays are busy and everyone works very late every night,” said a director of an American bank. “It’s almost unfair to just focus on juniors, but of course they leave more than others.”
U.S. investment bank Jefferies sent a note to 1,124 analysts and associates around the world on the day Goldman unveiled, saying it would offer them a one-year subscription for a Peloton bike, a home training system or an Apple Watch as a sign of their “deep appreciation” of their work over the past year.
“If Goldman really changes, the other banks will have to follow suit,” said a junior banker, speaking on condition of anonymity. “Analysts are fluid and can do the same job at any bank.”
To contact the authors of this story with feedback or news, send an email to Paul Clarke and Lucy McNulty