Investment banks want to hire people who really, really want to work in investment banking. Investment banks want to hire more women and ensure they reach senior positions. Unfortunately, these women want to join tech firms.
The story of MBAs gravitating away from finance and into tech firms is a well-told one, but when women who have always dreamed about working in banking start to complain about poorer pay, a lack of promotion opportunities and a dearth of excitement, there’s a concern.
Heather Tratoff says that the allure of negotiating major corporate and financial deals sparked her interest in investment banking, but a few years into her career after taking an MBA at Chicago Booth, she ditched it and joined Chegg – a digital education firm where she’s chief of staff. She is not alone.
“The ability to get promoted and take on more responsibility is much more prevalent in a tech company than at an investment bank,” she says.
Tech companies are also paying more – female MBAs who go into tech expect $98k, while those going into investment banking are anticipating $87k.
Separately, a former investment banker and senior equity researcher has admitted that stock recommendations are not always made with the clearest judgement.
Awkward encounters with hedge fund managers, where analysts offer advice only to be carefully reminded of the occasion when their stock picks went south, result.
“Perhaps this was a Brown-Nosed Buy. Career advancement does not come to people who make enemies by saying nasty things about the boss’s top client,” he writes.
Meanwhile:
“Bankers have undoubtedly done their best to give capitalism a bad name” (Economist)
Jamie Dimon is paid 222 times the average J.P. Morgan worker (Bloomberg)
Investment banker hired a group of screaming ‘fans’ to greet him as he arrived at Heathrow Airport. (Financial News)
U.S. investment banks, possibly because of a deliberate tactic on the part of European firms, have pulled away from their UK ad continental rivals. (Financial Times)
What it takes to run Citi’s bad bank: “You need someone who’s incredibly detail oriented, and he’s incredibly detail oriented,” (Wall Street Journal)
FinTech firm in Israel is hiring 100 people. Among the key skills it looks for is an ability to speak Klingon. (Times of Israel)
The target of boosting senior women in the UK is a problem for firms in the City (Financial News)
The SEC has new technology to get to the heart of potential deception by traders in the fixed income markets. (Bloomberg)
Are these tweets from presidential hopeful billionaire Donald Trump, or the angst ridden musings of random teenage girls on Twitter? (GQ)
Houlihan Lokey’s IPO might have been sold a little short, but shares were up 7% in the first day of trading (Market Watch)
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