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Roula Khalaf, the editor of FT, selects his favorite story in this week’s newsletter.
The banks have a strange disgust to understand that the investment bank labor market is the market, which basically functions in supply and demand and the economics of supply.
Some of them feel that the annual bonus round is a report card. Some people believe that it is like a partnership and gain a considerable share of the overall profit pool.
But your bonus can always be psychologically withstand the understanding of your boss’s estimation about what you might get elsewhere. It subtracts small factors that reflect your awareness of your flutter and inertia in searching for another job. Try this on the trading floor. People look at you like a kind of makabeli genius.
Unfortunately, this means that bankers often form quite simple and disappointing. This was such a year, according to those who track these with EfinancialCareers. The envelope tended to contain a number that was much smaller than the people they wanted, and despair was powerful.
The 2024 bonus round was not so terrible from an objective point of view. No one worth it was zero, and most people were more than the previous year. However, as in November, people were hoping for better things. See the prediction benchmark of Johnson Associates:
It seems that last year’s increase in the company paid this year was in the middle of the teens. The business line, which has many more or less years, has been more or less likely to be mediocre or circulating, but those who felt it were killed were not rewarded.
What will it tell you about the market condition? Basically, in order to adapt to the old rules, “Your real bonus this year was not fired in 2023.”
One of the remarkable features of “drought in transactions” is that it actually did not actually have a large -scale round. Even after the collapse of Credit Switzerland (and not so much, but the first round of the city’s reorganization), they were generally picked up by ambitious second -layer players who wanted to build franchises in the capital market. 。
And there was not much boom because there were not so many busts. Banks are expecting a rapid increase in activities, but they are more or less “right -sized” to deal with it when it happens.
Barge brackets do not need to accelerate employment. The second layer feels a little poor for all the money spent to bring a new management director. No one has contributed to the price tension at least for the time being.
In other words, an order canceled with a grumpy banker at a sports car dealer is actually a sign of trust in the industry in 2025.
They are not stingy because they are afraid that the business will not arrive, they are the natural behavior of the employer that they do not pay more than necessary, and they were expecting to recover transactions. They are stingy and for a while.
Read more:
-The development method of the bonus season (FT)
