A sharp presentation leaked by disgruntled Goldman Sachs analysts describing 100-hour weeks, declining mental health and threats to quit smoking, has received little sympathy from city bankers.
After all, exhausting hours are a rite of passage for a banker.
“Frankly, I did all this and no one gave anything at the time,” a London-based managing director of an investment bank said of the survey, an 11-page presentation by 13 analysts from Goldman who highlighted the struggles of those working in the lower ranks.
The paper garnered an explosion of online attention and sparked a debate over whether complaints about these conditions are justified among high-wage workers and bright career prospects. Goldman said he met with all 13 analysts, as well as his colleagues, to address what could be changed. Analysts suggested an 80-hour limit and a “pencil” policy on presentations 12 hours before the meeting. The bank is also hiring more analysts and will try to automate more work.
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“Should I feel sorry? No, there are 10,000 people who want their jobs and get paid more than any other industry. That’s what we’ve all had to go through,” said another managing director.
“Goldman’s presentation shows a legitimate problem that has existed for many, many years,” said a general manager of a large U.S. investment bank. “The news here is that nothing has changed and it won’t.”
A global investment banking chief of a major European player admitted that the pandemic has been tough for junior staff, particularly those who have joined during the Covid-19 closure conditions and have had to deal with to an increase in workload.
“Everyone is exhausted,” he said, adding that he organized a roundtable with 100 juniors, who expressed concern about the sustainability of the hours. “The activity is booming and it’s very difficult right now for everyone.”
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Minor bankers have had problems during the pandemic. In August, the juniors contacted by FN said they were about to run out, as the general managers expected them to be online at all times. JPMorgan has started virtual boxing classes and “escape room” games to keep juniors engaged this year, while both Citigroup, Goldman and UBS have tried to offer greater access to senior bankers.
And amidst the tension, the banks have been exceptionally busy. Investment banking revenue reached $ 194 billion last year, 29% more than in 2019 and the best return in a decade, Coalition found. In 2021, investment banks earned about $ 25 billion, which promises to be a record start to the year, according to Dealogic.
A senior banker admitted that the layoffs of analysts and associates have increased in recent months as the workload has increased amid the record flow of agreements. “I tried to point out two people to hire last week. One had already stopped and the other was looking to leave banking altogether,” he said.
The brutal lives of junior bankers have been highlighted at various points over the past ten years, but the privileged suggest that nothing has really changed. In 2013, the death of Bank of America inmate Moritz Erhardt, who fell after an epileptic seizure after working 72 hours straight, caused banks to impose limits on working hours, including protection. of the weekends. Meanwhile, a 12-year study by Dr. Alexandra Michel, a former Goldman Sachs investment banker turned academic who has conducted extensive research on the industry, showed a litany of health problems among junior bankers. who worked exhausting hours.
“Analyst wear and tear has been increasing year after year as opportunities to exit abound, along with this generation looking for a fuller existence,” said Logan Naidu, executive director of banking recruiters Dartmouth Partners, which focuses on junior and middle bankers. “The analyst recruitment market is definitely very busy and there is a combination of growth and replacement hiring.”
At the junior level, banks tend to shift people working in less busy areas to those where business activity is increasing. A senior banker said he had a team of people known internally as the “Avengers,” a reference to Marvel comic characters, where a gang of disparate superheroes come together to face a crisis, which would normally work on merger and acquisition agreements. and would switch to restructuring during busier times. Last year, this has not been possible as all units are running at full speed, he said.
“Sundays are dedicated to work and everyone works very late every night,” said a director of an American bank. “It’s almost unfair to just focus on juniors, but it’s true that they leave more than others.”
U.S. investment bank Jefferies sent a note to its 1,124 analysts and associates worldwide on the day the Goldman filing leaked, 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 your “deep gratitude” for your work over the past year.
“If Goldman really changes, the other banks will have to follow suit,” a junior banker said on condition of anonymity. “Analysts are fluid and can do the same job at any bank.”
To contact the authors of this story with comments or news, email Paul Clarke and Lucy McNulty