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50
THE VAULT GUIDE TO THE
Top 50
BAN KI NG
2009 EDITION
EMPLOYERS
BANKING EMPLOYERS
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Copyright 2008 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and the most trusted name in career informationTM are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W. 22nd St., 5th Floor, New York, NY 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 13: 978-1-58131-490-8 ISBN 10: 1-58131-490-6 Printed in the United States of America
Acknowledgments
This book could not have been written without the extraordinary efforts of Mary Phillips-Sandy, Stephanie Myers, Anu Rao, Marcy Lerner, Laurie Pasiuk and Ed Shen. Thanks also to Samer Hamadeh, Todd Kuhlman, Joseph Naggiar, Tim Lough, Fletcher Tison, Jennifer OReilly, Jessica Connell, Sara Calabro, David Walsh, Elena Boldeskou, Anthony Quarino and Kristy Sisko. Special thanks to all of the recruiting coordinators and corporate communications representatives who helped with the book. We appreciate your patience with our repeated requests and tight deadlines. The Vault Guide to the Top 50 Banking Employers is dedicated to the professionals who took time out of their busy schedules to complete our survey.
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Table of Contents
A GUIDE TO THIS GUIDE 1
Whats What? Industry Overviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Investment Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Commercial Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
15
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Quality of Life Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Best 25 Employers to Work For . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Overall Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Selectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Relationships with Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
DIVERSITY RANKINGS
33
Best 25 Firms For Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Diversity with Respect to Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Diversity With Respect To Ethnic Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Diversity with Respect to Gays & Lesbians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
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THE VAULT 50
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1. Goldman Sachs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2. The Blackstone Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3. Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 4. Lehman Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 5. J.P. Morgan Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 6. Merrill Lynch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 7. Lazard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 8. Credit Suisses Investment Banking Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 9. Deutsche Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 10. UBS Investment Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 11. Citi Institutional Clients Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 12. Chase Commercial Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 13. Greenhill & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 14. Barclays Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 15. Rothschild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 16. Bear Stearns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
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17. Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 18. Wachovia Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 19. Citi Consumer Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 20. HSBC North America Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 21. Houlihan Lokey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 22. Royal Bank of Scotland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 23. Perella Weinberg Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 24. Jefferies & Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 25. Evercore Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 26. Deloitte & Touche Corporate Finance LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 27. Piper Jaffray Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 28. Wells Fargo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 29. Dresdner Kleinwort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 30. RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 31. Thomas Weisel Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 32. Bank of New York Mellon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 33. BNP Paribas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 34. Allen & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 35. Oppenheimer & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 36. Macquarie Group (USA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
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37. KPMG Corporate Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 38. CIBC World Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 39. William Blair & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 40. Robert W. Baird & Co. (Baird) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 41. Gleacher Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 42. Moelis & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 43 (tie). Keefe, Bruyette & Woods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 43 (tie). JMP Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 45. U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 46. Raymond James Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 47. FBR Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 48. Cowen and Company LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 49. ABN AMRO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 50. Brown Brothers Harriman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
295
Bank Leumi USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 BB&T Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 BMO Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Broadpoint Securities Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Calyon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Caris & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Cascadia Capital LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Comerica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Duff & Phelps Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Fifth Third Bancorp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 First Horizon National Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Fox-Pitt Kelton Cochran Caronia Waller LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Leerink Swann LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Lloyds TSB Group plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 M&T Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Morgan Keegan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 National City Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Nomura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
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Peter J. Solomon Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 PNC Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Regions Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 RSM EquiCo Capital Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Sandler ONeill + Partners, L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Scotiabank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Stephens Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 Stifel Financial Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 SunTrust Banks, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Susquehanna International Group, LLP (SIG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 TD Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Union Bank of California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 ThinkPanmure LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 Webster Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 WR Hambrecht + Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449
APPENDIX
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Firm Facts
Departments: The firms major divisions. The Stats: Basic information about the firm, usually information thats available to the general public. This includes the firms leadership (generally, the person responsible for day-to-day operations, though it can include the chairman and relevant department heads), employer type (e.g., public, private or subsidiary), ticker symbol and exchange (if public), 2007 revenue and net income (usually only for public companies; we do have some estimates from third-party sources for private companies and, in some cases, the firm has confirmed that information), number of employees and number of offices. Key Competitors: The firms main business rivals. Size, business lines, geography and reputation are taken into account when evaluating rivals. Uppers and Downers: The best and worst things, respectively, about working at the firm. Uppers and downers are taken from the opinions of insiders based on our surveys and interviews. Employment Contact: The person (or people) that the firm identifies as its contact(s) for submitting resumes or employment inquiries. Weve supplied as much information as possible, including names, titles, mailing addresses, phone or fax numbers, email addresses and web sites. As companies process resumes differently, the amount of information may vary. For example, some firms ask that all employment-related inquiries be sent to a central processing office, while other firms mandate that all job applications be submitted through the company web site. The Buzz: When conducting our prestige survey, we asked respondents to include comments about the firms they were rating. Survey respondents were not able to comment on their own firm. We collected a sampling of these comments in The Buzz. We tried to include quotes that represented the common outside perceptions of a given firm. The quotes may not always reflect what insiders say in our surveys and interviews. We think The Buzz is a way of gauging outside opinion of a company.
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The Profiles
Most profiles are divided into three sections: The Scoop, Getting Hired and Our Survey Says (some profiles have only Scoop and Getting Hired sections). The Scoop: The companys history, a description of the business, recent clients or deals and other significant developments. Getting Hired: An overview of the companys hiring process, including a description of campus recruiting procedures, the number of interviews, questions asked and other tips on getting hired. Our Survey Says: Quotes from surveys and interviews done with employees or recent employees at the company. This includes information on culture, pay, hours, training, diversity, offices, dress code and other important company insights.
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VAULT TOP 50
2
PRESTIGE RANKING
TOP
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OVERVIEW OF THE
BANKING
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
I N D U STRY
BANKING EMPLOYERS
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Corporate finance
The bread and butter of a traditional investment bank, corporate finance generally performs two different functions: 1) mergers and acquisitions advisory, and 2) underwriting. On the mergers and acquisitions (M&A) advising side of corporate finance, bankers assist in negotiating and structuring a merger between two companies. If, for example, a company wants to buy another firm, then an investment bank will help finalize the purchase price, structure the deal and generally ensure a smooth transaction. The underwriting function within corporate finance involves raising capital for a client. In the investment banking world, capital can be raised by selling either stocks or bonds to investors.
Sales
Sales is another core component of an investment bank. Salespeople take the form of: 1) the classic retail broker, 2) the institutional salesperson, or 3) the private client service representative. Brokers develop relationships with individual investors and sell stocks and stock advice to the average Joe. Institutional salespeople develop business relationships with large institutional investorsthose who manage large groups of assets, like pension funds or mutual funds. Private client service (PCS) representatives, often referred to as private wealth managers, lie somewhere between retail brokers and institutional salespeople, providing brokerage and money management services for extremely wealthy individuals. Salespeople make money through commissions on trades made through their firms.
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Trading
Traders also provide a vital role for the investment bank. Traders facilitate the buying and selling of stock, bonds or other securities, either by carrying an inventory of securities for sale or by executing a given trade for a client. Traders deal with transactions, large and small, and provide liquidity (the ability to buy and sell securities) for the marketoften called making a market. Traders make money by purchasing securities and selling them at a slightly higher price. This price differential is called the bid-ask spread.
Research
Research analysts follow stocks and bonds and make recommendations on whether to buy, sell or hold those securities. Stock analysts (known as equity analysts) typically focus on one industry and will cover up to 20 companies stocks at any given time. Some research analysts work on the fixed-income side and will cover a particular segment, such as high-yield bonds or U.S. Treasury bonds. Salespeople within the investment bank utilize research published by analysts to convince their clients to buy or sell securities through their firm. Corporate finance bankers rely on research analysts to be experts in the industry in which they are working. Reputable research analysts can generate substantial corporate finance business and substantial trading activity, and thus are an integral part of any investment bank.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Whats What Industry Overviews
Syndicate
The hub of the investment banking wheel, syndicate provides a vital link between salespeople and corporate finance. Syndicate exists to facilitate the placing of securities in a public offering, a knock-down-drag-out affair between and among buyers of offerings and the investment banks managing the process. In a corporate or municipal debt deal, syndicate also determines the allocation of bonds.
Commercial Banking
Commercial banks, unlike investment banks, generally act as lenders, putting forth their own money to support businesses as opposed to investment advisors who rely on other folksbuyers of stocks and bondsto pony up cash. This distinction, enshrined by fundamental banking laws in place since the 1930s, has led to noticeable cultural differences (exaggerated by stereotype) between commercial and investment bankers. Commercial bankers (deservedly or not) have a reputation for being less aggressive, more risk-averse and simply not as mean as investment bankers. Commercial bankers also dont command the eye-popping salaries and prestige that investment bankers receive. There is a basis for the stereotype. Commercial banks carefully screen borrowers because the banks are investing huge sums of their own money in companies that must remain healthy enough to make regular loan payments for decades. Investment bankers, on the other hand, can make their fortunes in one day by skimming off some of the money raised in a stock offering or invested into an acquisition. While a borrowers subsequent business decline can damage a commercial banks bottom line, a stock that plummets after an offering has no effect on the investment bank that managed its IPO.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Whats What Industry Overviews
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rebound. This cautious optimism proved unfounded, and in December 2007, the firm revealed its quarterly results, including a staggering $854 million lossthe first quarterly loss in Bear Stearns history. Most of the losses came from write-downs, which the firm reported were $700 million greater than expected. Despite the quarterly results, Bear CEO James Cayne claimed his confidence in the company was rock solid. In response to the disappointing results, Cayne and other Bear executives noted that they were foregoing their holiday bonusesas it should be, according to Cayne himself. In January 2008, when Bears future took a turn for the worse, Cayne resigned. In March 2008, facing collapse, Bear received a temporary reprieve when JPMorgan Chase & Co. and the New York Federal Reserve moved in to provide the firm with emergency funding. Bear, whose shares immediately fell 53 percent on the news, admitted that its financial situation had significantly deteriorated after it fell prey to a cash shortage brought on by the credit crisis. But within a matter of days, the situation turned even more direr. Fearing Bears cash shortage, the firms clients withdrew approximately $17 billion over two days, leaving the 85-year-old Bear with no choice (other than claiming bankruptcy) but to sell. And on Monday, March 16th, that sale became official when JPMorgan Chase announced it would buy Bear for $2 a share just $236 million, or approximately 97 percent less than Bears value in the previous week. (After much grumbling from Bear shareholders, the deal was cut at a higher value: $10 a share.) To help finance the deal, the Federal Reserve agreed to provide JPMorgan with about a $30 billion credit line, believed to be the largest Fed advance on record to a single company, according to The Wall Street Journal. Aftershocks of the buyout were felt all around the world. In Japan, stocks immediately sunk to the lowest theyd been in two years. Analysts in the U.K. predicted a depression on the scale of that which occured in the 1930s. Swiss-based UBS announced it would likely cut another 8,000 jobs. And in the U.S., financial stocks plummeted during the first few hours of trading on March 17. JPMorgan Chase, meanwhile, stepped forward to answer questions about what would become of Bear Stearns employees. The bank stated that about 50 percent of job offers extended by Bear Stearns would be rescinded. Summer interns had it a little betterthe firm assured summer interns that they will be offered 10 weeks of pay if they work for a certain nonprofit organization and will get an early chance to apply for fall positions. Graduates denied full-time jobs were allowed to keep their signing and relocation bonuses, and given access to career services. The cuts came mostly in areas where there was overlap, such
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Year in Review
as M&A, equity underwriting and corporate finance. Offers in investment management and other areas such as commodities, merchant banking and prime brokerage (Bears jewel) were unaffected.
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Edwards and buying mortgage lender Golden West not long before the subprime mess. A month later, Wachovia found Thompsons replacement, naming Robert K. Steelformer undersecretary of the U.S. Treasuryas its new chief executive and president.
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Year in Review
In worldwide announced M&A deal volume, perennial powerhouse Goldman Sachs again ranked No. 1, with Morgan Stanley in second place and Citi in third. Goldman also again took the top spot in the U.S., with Morgan in second and Lehman Brothers in third. As far as the largest worldwide transactions, BHP Billitons acquisition of Rio Tinto down under in Australia for $192.7 billion came in at No. 1, followed by ABN-AMRO Holdings $99.4 billion sale and the $61.4 billion spinoff of Kraft Foods. By industry sector, financial services was the busiest when it came to merging, acquiring and divesting in 2007, with more about 5,000 announced deals worth a total of $700 billion. In the U.S., overall M&A deal volume for the year hit a record $1.57 trillion, a 5.5 percent increase versus 2006.
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Final completion
The long-awaited ABN AMRO transaction was finally completed in October 2007 after many months of anticipation and talks with Barclays, which ultimately bowed out of the deal. In April 2007, ABN AMRO received a letter from a consortium made up of Banco Santander, the Royal Bank of Scotland and Fortisan invitation to start exploratory merger talks. The three-bank consortium ultimately offered about $90 billion for ABN AMRO$10 billion more than Barclays was offering. In October 2007, Barclays withdrew its bid for ABN AMRO and received break-up fees of 200 million from ABN AMRO. ABN AMRO was then officially purchased by the consortium. Other high-profile (but less pricey) banking buys include Jefferies June 2007 purchase of the Putnam Lovell investment banking business from Canadas National Bank Financial Group, and Oppenheimer Holdings January 2008 acquisition of most of CIBC World Markets U.S. investment banking business.
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Year in Review
economists who believe the U.S. will not experience a recession: This has finally confirmed to me that flying saucers have landed and that people from outer space are in our midst, influencing policy. Whether alien life forms are trying to infiltrate legislative bodies or not, its highly probable that, given the hits that most banks have already taken, bankers will close 2008 with significantly lighter wallets.
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THE VAULT
TOP
50
RANKINGS
PRESTIGE
BANKING EMPLOYERS
Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Prestige Rankings
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BANKING EMPLOYER
Goldman Sachs The Blackstone Group Morgan Stanley Lehman Brothers J.P. Morgan Investment Bank Merrill Lynch Lazard Credit Suisses Investment Banking Business Deutsche Bank UBS Investment Bank Citi Institutional Clients Group Chase Commercial Bank Greenhill & Co. Barclays Capital Rothschild Bear Stearns* Bank of America Wachovia Corporation Citi Consumer Banking HSBC North America Holdings Houlihan Lokey Royal Bank of Scotland Perella Weinberg Partners Jefferies & Company Evercore Partners
PRESTIGE SCORE
9.131 8.261 8.039 7.776 7.652 7.174 7.138 7.000 6.824 6.714 6.520 6.340 6.109 5.866 5.690 5.678 5.661 5.546 5.503 5.502 5.445 5.402 5.371 5.322 5.258
2008 RANK
1 2 3 4 5 6 8 9 12 10 7 11 16 17 19 13 15 18 14 20 21 25 23 22 26
2007 RANK
1 3 2 4 5 7 8 9 13 11 6 10 15 19 18 14 17 20 12 22 21 28 NR 23 26
2006 RANK
1 2 3 4 NR 7 6 10 12 11 5 8 14 18 16 13 17 20 9 23 22 31 NR 26 42
12 13 14 15 16 17 18 19 20 21 22 23 24 25
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2009 RANK
26 27 28 29 30 31 32 33 34 35 36
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BANKING EMPLOYER
Deloitte & Touche Corporate Finance LLC Piper Jaffray Companies Wells Fargo Dresdner Kleinwort RBC Capital Markets Thomas Weisel Partners Bank of New York Mellon BNP Paribas Allen & Company Oppenhiemer & Co. Macquarie Group (USA) KPMG Corporate Finance LLC CIBC World Markets William Blair & Company Robert W. Baird & Co. (Baird) Gleacher Partners Moelis & Company Keefe, Bruyette & Woods JMP Securities U.S. Bancorp Raymond James Financial FBR Capital Markets Cowen and Company LLC ABN AMRO* Brown Brothers Harriman
PRESTIGE SCORE
5.076 5.043 4.948 4.913 4.849 4.765 4.620 4.619 4.598 4.545 4.385 4.363 4.319 4.312 4.193 4.184 4.152 4.152 4.152 4.074 4.046 4.038 3.970 3.963 3.908
2008 RANK
30 27 24 31 29 28 35 34 33 NR 47 43 32 36 42 44 NR 38 NR 46 40 49 39 41 37
2007 RANK
NR 27 30 24 34 25 39 38 31 NR 45 NR 29 37 43 32 NR 36 NR NR 42 40 33 46 35
2006 RANK
NR 25 29 21 34 19 28 37 30 NR NR NR 24 35 40 33 NR 44 NR 46 41 43 41 47 39
37 38 39 40 41 42 43 (tie) 43 (tie) 45 46 47 48 49 50
NR = Not Ranked *Acquired by Royal Bank of Scotland, Fortis and Santander in October 2007
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THE VAULT
TOP
50
RANKINGS
QUALIT Y OF LIFE
BANKING EMPLOYERS
Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
RANK
1 2 3 4
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FIRM
Houlihan Lokey Moelis & Company UBS Investment Bank Goldman Sachs Lehman Brothers J.P. Morgan Investment Bank William Blair & Company Credit Suisses Investment Banking Business Wells Fargo Merrill Lynch Union Bank of California Evercore Partners Jefferies & Company BB&T Corporation Sandler ONeill + Partners, L.P. Cowen and Company LLC RBC Capital Markets Robert W. Baird & Co. (Baird) TD Securities Citi Consumer Banking Citi Institutional Clients Group M&T Bank RSM EquiCo Capital Markets BMO Capital Markets SunTrust Banks, Inc.
SCORE
9.803 9.707 9.406 9.281 9.196 9.106 9.031 8.964 8.855 8.846 8.841 8.785 8.640 8.637 8.624 8.542 8.506 8.343 8.268 7.884 7.866 7.742 7.583 7.566 7.544
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Overall Satisfaction
On a scale of 1 to 10, where 1 is not at all satisfied, my overall satisfaction is:
RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Moelis & Company Houlihan Lokey UBS Investment Bank Goldman Sachs Lehman Brothers Evercore Partners Sandler ONeill + Partners, L.P. J.P. Morgan Investment Bank William Blair & Company Merrill Lynch Credit Suisses Investment Banking Business Jefferies & Company BB&T Corporation Wells Fargo RBC Capital Markets Union Bank of California Robert W. Baird & Co. (Baird) Cowen and Company LLC TD Securities M&T Bank
SCORE
9.450 9.333 9.261 9.058 8.968 8.917 8.900 8.862 8.762 8.539 8.529 8.458 8.421 8.356 8.346 8.286 8.269 8.161 7.792 7.515
14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Selectivity
On a scale of 1 to 10, where 1 is very easy and 10 is nearly impossible, how easy is it to get hired at your firm?
RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Evercore Partners Moelis & Company Houlihan Lokey UBS Investment Bank Goldman Sachs William Blair & Company Lehman Brothers J.P. Morgan Investment Bank RBC Capital Markets Robert W. Baird & Co. (Baird) Credit Suisses Investment Banking Business Merrill Lynch Citi Institutional Clients Group Cowen and Company LLC Jefferies & Company M&T Bank Duff & Phelps Corporation BMO Capital Markets TD Securities Wells Fargo
SCORE
8.696 8.571 8.556 8.500 8.294 8.227 8.191 8.153 7.962 7.840 7.735 7.720 7.711 7.452 7.391 7.000 6.969 6.875 6.792 6.789
14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Compensation
On a scale of 1 to 10, where 1 is far below average and 10 is far in excess of industry average, my total compensation is:
RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Moelis & Company Evercore Partners Houlihan Lokey William Blair & Company Goldman Sachs Merrill Lynch Cowen and Company LLC Credit Suisses Investment Banking Business Jefferies & Company UBS Investment Bank J.P. Morgan Investment Bank M&T Bank Lehman Brothers Wells Fargo RBC Capital Markets BMO Capital Markets Union Bank of California Robert W. Baird & Co. (Baird) Citi Institutional Clients Group TD Securities
SCORE
8.667 8.435 8.389 8.268 7.640 7.440 7.250 6.696 6.739 6.708 6.691 6.593 6.400 6.378 6.167 6.125 6.044 6.000 5.581 5.450
14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Hours
On a scale of 1 to 10, where 1 is means not satisfied at all and 10 means very satisfied, please rank your satisfaction with the number of hours you spend in the office:
RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Wells Fargo TD Securities Houlihan Lokey M&T Bank Union Bank of California RSM EquiCo Capital Markets BB&T Corporation Cowen and Company LLC SunTrust Banks, Inc. RBC Capital Markets Lehman Brothers UBS Investment Bank Goldman Sachs Merrill Lynch Jefferies & Company Credit Suisses Investment Banking Business Moelis & Company J.P. Morgan Investment Bank Robert W. Baird & Co. (Baird) William Blair & Company
SCORE
8.010 7.917 7.824 7.688 7.565 7.550 7.297 7.156 7.117 7.080 6.984 6.950 6.904 6.846 6.800 6.794 6.636 6.603 6.423 6.381
13 14 15 16 17 18 19 20
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RANK
1 2 3 (tie) 3 (tie) 5 6 7 8 9 10 11 12
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FIRM
Houlihan Lokey Moelis & Company Evercore Partners Cowen and Company LLC Credit Suisses Investment Banking Business RBC Capital Markets William Blair & Company Lehman Brothers UBS Investment Bank Goldman Sachs J.P. Morgan Investment Bank Merrill Lynch Jefferies & Company Sandler ONeill + Partners, L.P. BB&T Corporation Robert W. Baird & Co. (Baird) Wells Fargo TD Securities Union Bank of California M&T Bank
SCORE
9.647 9.381 9.000 9.000 8.941 8.923 8.864 8.836 8.818 8.808 8.700 8.615 8.600 8.600 8.553 8.520 8.452 8.333 8.273 8.152
13 (tie) 13 (tie) 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Training
On a scale of 1 to 10, where 1 is non-existent and 10 is superior, the training at my firm (both formal and informal) is:
RANK
1 2 3 4 5 6 7 (tie) 7 (tie) 9 10 11 12 13
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FIRM
UBS Investment Bank J.P. Morgan Investment Bank BB&T Corporation Goldman Sachs Union Bank of California Credit Suisses Investment Banking Business Houlihan Lokey Moelis & Company Lehman Brothers Cowen and Company LLC Wells Fargo Merrill Lynch Jefferies & Company Citi Institutional Clients Group Robert W. Baird & Co. (Baird) William Blair & Company SunTrust Banks, Inc. BMO Capital Markets TD Securities Sandler ONeill + Partners, L.P.
SCORE
9.150 9.138 9.079 9.020 8.818 8.781 8.706 8.706 8.694 8.276 8.155 8.154 7.833 7.744 7.640 7.600 7.379 6.667 6.542 6.300
14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
Offices
Where 1 is uncomfortable and 10 is ultra-luxurious, in terms of space, comfort, and decor, the offices I work in are:
RANK
1 2 3 4 (tie) 4 (tie) 6 7 8 9 10 11 12 13
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FIRM
William Blair & Company Houlihan Lokey UBS Investment Bank Evercore Partners Moelis & Company Lehman Brothers Union Bank of California TD Securities RSM EquiCo Capital Markets Credit Suisses Investment Banking Business Merrill Lynch Duff & Phelps Corporation Cowen and Company LLC Wells Fargo RBC Capital Markets J.P. Morgan Investment Bank BMO Capital Markets BB&T Corporation Robert W. Baird & Co. (Baird) Jefferies & Company
SCORE
8.619 8.444 7.565 7.500 7.500 7.413 7.364 7.208 7.025 6.971 6.885 6.882 6.781 6.775 6.739 6.655 6.647 6.474 6.269 6.250
14 15 16 17 18 19 20
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THE VAULT
TOP
50
D IVE R S IT Y RANKINGS
BANKING EMPLOYERS
Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
RANK
1 2 3 4 5 6 7 8 9 10 11
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FIRM
Goldman Sachs Wells Fargo Moelis & Company J.P. Morgan Investment Bank Union Bank of California Lehman Brothers UBS Investment Bank Credit Suisses Investment Banking Business Houlihan Lokey RBC Capital Markets TD Securities Citi Consumer Banking Citi Institutional Clients Group Evercore Partners Jefferies & Company BB&T Corporation Merrill Lynch SunTrust Banks, Inc. Robert W. Baird & Co. (Baird) Sandler ONeill + Partners, L.P. RSM EquiCo Capital Markets BMO Capital Markets William Blair & Company Cowen and Company LLC M&T Bank
SCORE
9.015 9.002 8.990 8.965 8.917 8.789 8.569 8.536 8.350 8.339 8.270 8.258 8.192 7.916 7.885 7.840 7.892 7.330 7.235 7.169 7.051 6.783 6.750 6.149 5.805
12 13 14 15 16 17 18 19 20 21 22 23 24 25
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
J.P. Morgan Investment Bank Union Bank of California Goldman Sachs Wells Fargo Moelis & Company Lehman Brothers Houlihan Lokey UBS Investment Bank TD Securities Citi Institutional Clients Group Credit Suisses Investment Banking Business SunTrust Banks, Inc. Jefferies & Company BMO Capital Markets Merrill Lynch RBC Capital Markets BB&T Corporation Robert W. Baird & Co. (Baird) William Blair & Company Evercore Partners
SCORE
9.019 9.000 8.981 8.968 8.875 8.771 8.647 8.632 8.409 8.256 8.161 8.157 8.143 8.133 8.039 8.000 7.944 7.600 7.550 7.191
13 14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Goldman Sachs Union Bank of California Moelis & Company J.P. Morgan Investment Bank Wells Fargo UBS Investment Bank Citi Institutional Clients Group Lehman Brothers Credit Suisses Investment Banking Business Houlihan Lokey RBC Capital Markets Evercore Partners BB&T Corporation TD Securities Merrill Lynch RSM EquiCo Capital Markets SunTrust Banks, Inc. Jefferies & Company Robert W. Baird & Co. (Baird) BMO Capital Markets
SCORE
9.039 8.842 8.824 8.796 8.772 8.700 8.683 8.617 8.571 8.529 8.480 8.273 7.943 7.800 7.760 7.556 7.500 7.421 6.917 6.714
13 14 15 16 17 18 19 20
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings
RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Moelis & Company Wells Fargo J.P. Morgan Investment Bank Goldman Sachs Lehman Brothers Union Bank of California Credit Suisses Investment Banking Business TD Securities RBC Capital Markets UBS Investment Bank Jefferies & Company Houlihan Lokey Merrill Lynch Citi Institutional Clients Group BB&T Corporation Robert W. Baird & Co. (Baird) RSM EquiCo Capital Markets SunTrust Banks, Inc. Cowen and Company LLC M&T Bank
SCORE
9.273 9.267 9.079 9.024 8.979 8.909 8.875 8.600 8.539 8.375 8.091 7.875 7.688 7.636 7.632 7.188 6.867 6.333 5.706 5.583
13 14 15 16 17 18 19 20
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TOP
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THE VAULT
50
BANKING EMPLOYERS
CAREER LIBRARY
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VAULT TOP 50
1
PRESTIGE RANKING
Goldman Sachs
RANKING RECAP
Quality of Life #4 Training #4 Best Employers to Work For #4 Overall Satisfaction #5 Selectivity #5 Compensation #10 Treatment by Managers #13 Hours Diversity #1 Overall Diversity #1 Diversity with Respect to Minorities #3 Diversity with Respect to Women #4 Diversity with Respect to GLBT
85 Broad Street New York, NY 10004 Phone: (212) 902-1000 Fax: (212) 902-3000 www.gs.com
BUSINESSES
Asset Management & Securities Services Investment Banking Trading & Principal Investments
THE STATS
Employer Type: Public Company Ticker Symbol: GS (NYSE) Chairman & CEO: Lloyd C. Blankfein Net Revenue: $37.67 billion (FYE 11/06) Net Income: $9.54 billion No. of Employees: 26,959 No. of Offices: 50
KEY COMPETITORS
Citi Credit Suisse Lehman Brothers Merrill Lynch Morgan Stanley
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UPPERS
The people are truly the best and brightest Outstanding deal flow Incredible opportunity for pushing yourself
DOWNERS
Always running at 110 percent Tough to get ahead, with so many talented people Forget about free time
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
www.gs.com/careers
Rolls Royce of banking Remains the M&A and equity leader, but the lead has significantly narrowed Great name, but not worth sacrificing your life for three or more years to get a good position The kings, still the best
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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs
THE SCOOP
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Record revenue
Business at Goldman Sachs is divided into three departments: asset management and securities, investment banking, and trading and principal investments, which encompasses the equities, principal investments and fixed income, currency and commodities businesses. In 2006, Goldmans divisions reported record revenue across the board. Investment banking turned in net revenue of $5.63 billion for the year, up 5 percent from its previous record in 2000 and up 53 percent from 2005. This growth was spearheaded by Goldmans underwriting activities, which grew 73 percent from 2005, with debt and equity underwriting making equally strong showings. Goldmans other businesses had reason to celebrate, too. In 2006, fixed income, currency and commodities (FICC) reported a 60 percent increase in net revenue from 2005 to $14.26 billion, and asset management saw a 45 percent increase in net revenue from 2005 to $4.29 billion in 2006. The equities divisions net revenue increased 50 percent from 2005 to $8.48 billion in 2006, and principal investments garnered $2.82 billion in 2006, up from $2.23 billion in 2005. Securities services also passed to $2 billion mark, turning in net revenue of $2.18 billion in 2006, up from $1.79 billion in 2005.
Surprise rise
In March 2007, Goldman Sachs reported a record 29 percent boost in its first-quarter net income. The increase surprised analysts, who had expected a drop in earnings due mostly to the decline of the subprime mortgage business. Goldman reported $3.2 billion in profits for the quarter, easily besting the previous quarters $2.48 billion, while net revenue for the quarter came in at $12.7 billion. The firm cited strong client activity across every region and every segment of its business as a cause for the jump.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs
Meanwhile, Goldmans investment banking net revenue jumped to $1.71 billion for the quarter, a rise of 17 percent versus the previous years first quarter, which the firm attributed to growth in industrywide completed mergers and acquisitions.
Table topping
A fixture at the top of banking league tables, Goldman asserted its dominance when 2006s ranks were tallied. According to Thomson Financial, it came in first in both worldwide announced and completed mergers and acquisitions, raking in $2.3 billion in advisory fees and working on 377 completed deals. Goldman was tops in announced and completed U.S. M&A, too, with $562.9 billion in 2006 announced transaction value, a 30 percent increase from its performance the year before. The firm advised on 216 completed deals worth $564.3 billion, earning a 36 percent market share. This success was due in part to Goldmans role in the biggest M&A deal of the year, AT&Ts acquisition of BellSouth, a deal that created the countrys largest telecommunications company. In 2006, Goldman dominated non-M&A tables, too, ranking No. 1 in global equity and equity-related offerings as well as initial public stock offerings. It was No. 7 in global debt, with 915 deals worth $372.8 billion.
Big-time bonuses
Bonuses at the bank were reported to be sky-high, meaning lots of bankers were going to be in the market for big ticket items. No one profited more than CEO Blankfein, whose $53.4 million bonus was the highest ever paid to a chief executive on Wall Street. The firms compensation committee voted to give Blankfein $27.3 million in cash and $15.7 million in restricted stock, plus options to buy $10.5 million more of Goldman stock. Combined with his salary ($600,000 annually), Blankfein pocketed $54 million for the yearup from $38 million in 2005. But some reports claimed other top executives at Goldman had even higher bonuses, though the firm did not disclose exact figures. At any rate, the jaw-dropping bonus payout at Goldman prompted a fresh round of scrutiny regarding executive pay in the financial industry. Some questioned the rationale for such extraordinary compensation, especially since Goldmans bonus checks were exponentially higher than those at its rival banks.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs
In addition, Goldman claims to be one of the first investment banks to adopt an environmental policy, and its detailed Environmental Policy Framework, established in November 2005, outlines its commitment to reduce indirect greenhouse gas emission by 7 percent from its offices by 2012, to be a leading U.S. wind energy developer and to invest up to $1 billion in renewable energy and energy efficient projects, among numerous other green initiatives (the complete Framework is available on Goldmans web site).
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs
One way in
Many say the best way in to Goldman is through the summer internship door. It is significantly easier to get hired full time out of the internship program, an analyst says. Goldman is trying to do the majority of its full-time hiring from its summer analyst class, adds another. After all, since your two-day interview is extended to 10 weeks, ex-interns say, you have a better chance at proving you have the skill set, ability and personal drive to succeed. Interns are paid the same as full-time, first-year associates or analysts, and summer associates are generally rewarded with a small bonus at the end of the summer. The work I did was very similar to the work that I now do as a full-time analyst, a current staffer says of the internship program. Which means its no vacation on the beachsummer was difficult, another says. We had to rotate through several different sales and trading desks. We had to do presentations, take tests and meet with numerous Goldman professionals. Others describe the summer program as fantastic and a great way to learn about the company and possible careers. Its designed as an industry group/generalist hybrid, one former intern says, and offers the best of both worlds. Regular contact with upper-level management is a bonus, too. I met a lot of managers, and understood the nature of my business and a future role, a source says.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs
believe that a building not focused on show fits just fine with the Goldman culture. One analyst tries to look the bright side: Theres no such thing as personal office space, even for managing directors. Helps with teamwork! Business appropriate is the dress code catchphrase at Goldman, where people tend to lean toward the business casual side unless theres a client meeting. There is a very wide range of dress, and no one seems to mind whether you are wearing a suit or a sweater, says a source. I dress quite casually, unless Im meeting with a client. Overall, Goldmans people figure theyre smart enough to know what to wear and when to wear it. Individuals do dress appropriately for important meetings, an insider says.
A few complaints
Goldman respondents are generally content with their compensation, and enjoy competitive perks like car services after 9 p.m., meal allowances of $25 for dinner, investment seminars, backup child care, and a discounted gym thats very convenient. Sources say they can also invest in private equity funds with reduced management fees and have the ability to become Goldman Sachs wealth management clients, and get the information and tools such clients have. The 401(k) plan options are described as flexible and very user-friendly. There are also some discounts with retailers, car manufacturers and mobile phone providers. Despite a very strong womens network at Goldman Sachs, sources say there are not a lot of women at the top here. Weve traditionally done an excellent job recruiting women, one insider agrees, but we could improve on retaining women as they advance in their careers. The demanding schedule at the firm does not always lend itself to flexible work schedules or parttime work, which may explain why there are relatively fewer women in the senior ranks. However, according to the firm, the number of female partners has increased from 7 percent in 2001 to 14 percent in 2006.
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Some feel the firm is trying to make changes in this regard. There is a big focus on diversity that carries over to a huge emphasis in recruiting, and large diversity networks. Concludes an insider, the firm is improving, but still needs to work better. However, one source points out that at Goldman Sachs, benefits are flexible with respect to same-sex partners.
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VAULT TOP 50
2
PRESTIGE RANKING
345 Park Avenue New York, NY 10154 Phone: (212) 583-5000 Fax: (212) 583-5712 www.blackstone.com
BUSINESSES
Corporate Advisory Services Corporate Debt Distressed Securities Advisors India/Asia Closed-End Funds Long/Short Equity Investments Marketable Alternative Investments Private Equity Real Estate Restructuring & Reorganizing Advisory Services
UPPERS
People like each other and respect each others immense talent Lots of responsibility early: analysts typically do a fair amount of work that associates at other firms might do Very prestigious name on resume
THE STATS
Employer Type: Public Company Ticker Symbol: BX (NYSE) Chairman & CEO: Stephen A. Schwarzman Revenue: $3.05 billion (FYE 12/07) Net Income: $1.82 billion No. of Employees: 1,250 (approx.) No. of Offices: 13
DOWNERS
Much of the learning is done on the jobtoo small to run a big training program High stress and people are very demanding Reputation hurting as of late
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EMPLOYMENT CONTACT
www.blackstone.com/careers/index.html
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Very prestigious Very overrated Dynamic, dealmakers Great name, but known more for its private equity practice than banking
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group
THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group
The news of the failed Alliance deal followed directly after an earlier Blackstone deal to acquire mortgage lender PHH for $1.8 billion fell apart, also due to lack of financing. PPH announced the collapse of the sale on New Years Day 2008, and many in the industry pointed to the unsuccessful acquisition as a bad omen for the coming year in an environment when credit would be tighter than ever. PPH is now seeking a $50 million termination fee for compensation on the deal.
Acquiring Capital
In early January, 2008, Blackstone announced that it would reunite with one of its earliest investments: GSO Capital Partners, a $10 billion hedge fund. The move was seen as a relatively stable buy for the company, which has been shaken up by the credit crisis. Blackstones hedge funds have remained a steady source of income for the firm, gaining 88 percent in the third quarter of 2007 in comparison to the previous year. But the motivation for the acquisition of GSO is more complex than just a promise of increased income. The hedge fund invests in leveraged finance and may be an essential source of loans for the troubled private equity firm. Blackstone plans to pay $930 million in cash and stock for GSO and then buy back about $500 million of its own stock to cover part of the cost of the acquisition.
Stock slump
The debut of Blackstones IPO made a big splash in the financial and seemed to herald the coming of a new era of private equity firms going public with huge results. However, the timing of Blackstones foray into the public sphere proved to be ill fated. Since the stocks debut in June at $31/share (and then a quick rise to $38/share), things have gone steadily downward. As of June 2008, the stock was languishing in the high teens, nearly 50 percent of its original value. Though the firm reported steady earnings in three of its four financial divisions in its third quarter 2007 earnings press conference, the good news was offset by a 44 percent decline in the revenue made in its real estate division for the quarter. Earlier in the year, the real estate sector had looked promising with the $39 billion purchase of Equity Office Properties Trust and the $26 billion purchase of Hilton Hotels, but as the subprime crisis became evident, these gains were neutralized.
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group
perhaps had the most impact on his future in the investment world (classical music), and the pill hes ingested every day for the past 15 years. Years ago, Schwarzman was found to have a rare blood-protein deficiency that put him at risk of a blood clot or embolism. As a result, he is tested often and takes a pill each day, which should help him to have a normal life span. Still, the CEO told The New Yorker, its a reminder that life is fleeting Every day should be a good day. People fool themselves that theyll be here forever. I get a daily wake-up call that thats not true. We have limited time, and we have to maximize it.
GETTING HIRED
As far as the type of people Blackstone likes to put on salary, the firm says its looking for energetic, self-motivated, teamoriented individuals with fresh ideas and innovative solutions who thrive on challenge in a fast-paced, dynamic environment. Note that analyst and associate classes are smaller than the bulge bracket firms. Blackstone lists open positions in the careers section of its web site, with extensive descriptions of the qualifications and responsibilities of each position, and allows candidates to apply online.
Brace yourself
Candidates should expect an extensive interview process. One insider reports two rounds of interviews at Blackstone offices in New York, with four to six interviews in each round. But its not uncommon to have to go through more than three interview rounds. An analyst, who was tapped to interview by Blackstone says, The type of questions you get in interviews all depends on who you interview with. Some people like to B.S. and do a personality interview, and some like to grill you. Its hard to generalize. One insider claims the interview process is fairly normal and says he met almost every partner in the group to which he was applying. He adds, There were lots of culture fit questions, more than I had at previous employers such as Goldman and McKinsey. Another source recounts his experience in a later interview round: I met with three teams, for two to five hours each. Overall, the contact says, The interview process can be stressful at times and there is an emphasis initially on technical ability. I met people at every level, including several partners. Indeed, during final round interviews at Blackstone headquarters, analysts will meet with one or more partners, who all have their own styles, says a source. A former banker adds, Its really a crapshoot when you interview. So much has to do with who you meet and on which day you meet them, and if your personality jives with whom you meet. No matter who you get, though, expect some pretty technical questions in the first round, says one contact. If you go to Wharton, or had a summer internship in banking, anythings fair game. But no one expects you to get everything right. An insider says one of the favorite Blackstone questions is, If you increase depreciation by $10 million, how does that flow through all three financial statements? They also like to throw out the the clock questionthe one where youre asked how many degrees there are between the minute and second hand at a certain time. And, says a source, You better understand accretion
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group
and dilution. The contact adds that overall the questions are more accounting than finance, and Blackstone puts a large emphasis on cultural fitand its obvious they do this well, because everyone here has a pretty good time together. This insider also has a word to the very wise: Those who are too smart and try too hard dont make it.
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It isnt easy
Expect the daily grind to be taxing, sources report. Its intense, very challenging, and requires a lot of stamina and motivation, admits an insider. Another agrees the firms culture is tough, but says, If you work hard and have a good attitude, things will be pretty easy for you. He cautions those with bad attitudes: Those who dont work hard or dont have a good attitude will be miserable. Choose your department carefully. According to one banker, M&A is known as one of the better cultures in the firm, real estate is also supposed to be pretty good and private equity is pretty painful. The source adds that for the most part, though, the culture isnt as harsh as people outside the firm think.
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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group
Expect the firm to rule with a proverbial formal always fist when it comes to attire. Its formal all the time, adds a Blackstone source. And people here dress upcuff links, white collar shirts, monogrammed shirts, the works. Old-school, is how another describes attire around the office. Blackstone does, though, have casual Fridays in the summer, and on the weekends people wear whatever they want.
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Just average
For the most part, Blackstone receives middling marks on the diversity front, although one insider says theres a lot of diversityat Blackstone. He does admit, though, there are a limited number of women in M&A group. The contact gives a possible explanation why this is so: We want to hire women, but its not easy. Every year we try, but either no one bites or we dont find someone who is adequate. An associate in London says his office has a number of [Asian] Indians, including one partner, which seems to indicate we are doing okay with respect to diversity. However, in New York, another contact says while there are several Asians, theres less than a handful of any other minorities.
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VAULT TOP 50
3
PRESTIGE RANKING
Morgan Stanley
KEY COMPETITORS
Citi Goldman Sachs J.P. Morgan Lehman Brothers UBS Investment Bank
1585 Broadway New York, NY 10036 Phone: (212) 761-4000 Fax: (212) 762-0575 www.morganstanley.com
BUSINESSES
Institutional Securities Investment Management Global Wealth Management
UPPERS
Hard to beat the prestige Very motivated and professional staff
THE STATS
Employer Type: Public Company Ticker Symbol: MS (NYSE) Chairman & CEO: John J. Mack Net Revenue: $5.49 billion (FYE 11/07) Income: $1.47 billion (FYE 11/07) No. of Employees: 45,506 No. of Offices: 661
DOWNERS
Six-and-a-half days a week in the office is normal Still a bit of an old boys club
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EMPLOYMENT CONTACT
www.morganstanley.com/about/careers/index.html
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great reputation, consistently rated among the best Very strong franchise but very stiff culture Classic investment bank; old institution based on traditional values Had a couple of tough years so no longer in line with Goldman, but right up there
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THE SCOOP
Strong second
One of the leading investment banking firms in the world, Morgan Stanleys business is divided into three practice areas: investment management, wealth management and institutional securities. Morgan Stanley Investment Management (MSIM) provides global asset management products and services, including equity, fixed income alternative investments and a direct investing business. The firms global wealth management unit caters to individuals and small- to medium-sized businesses and institutions, offering retirement plan services, brokerage and investment services, financial and wealth planning, annuity and insurance, credit, trust and banking, and cash management. And the institutional securities unit covers Morgan Stanleys worldrenowned investment banking, sales, trading, financing, research and risk management analytics operations. An M&A powerhouse, Morgan Stanley again ranked No. 2 in both announced worldwide and announced U.S. M&A deal volume, trailing its arch advisory nemesis Goldman Sachs. In Europe, though, Morgan nabbed the top spot in announced deals. Overall, in 2007, Morgan Stanley advised on 431 M&A deals worldwide worth a total of $1.3 trillion. The Morgan Stanley story began in 1935 with just two partners: Harold Stanley and Harry Morgan, who left their jobs with J.P. Morgan in New York to open a self-titled securities firm. In 1997, the firm became Morgan Stanley Dean Witter after a merger with Dean Witter, Discover & Co., which had launched in San Francisco in 1924. In 2007, the Discover unit was spun off, which was hailed a smart step for Morgan Stanley. The bank had managed to increase the units revenue in 2006 after disappointing results in 2005, but still, many investors and analysts felt the bank should concentrate on its core investment banking and institutional trading businesses. And so Discover became independent again. Under the terms of the divestiture deal, shareholders received one share of Discover stock for every two shares of Morgan Stanley. Morgan Stanley kept no Discover shares for itself, and the new stand-alone Discover began trading in July 2007 on the New York Stock Exchange under the symbol DFS. Morgan Stanley, meanwhile, trades under the ticker symbol MS (which replaced its former symbol, MWD).
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Credit losses
The exuberance of a healthy market came to a screeching halt for many of the big investment banks in 2007, with losses in the credit crunch dampening the enthusiasm of those who thought the party might never end. Morgan Stanleys third quarter 2007 earnings reflected the realities of these losses, with profits dropping to $1.54 billion, a 17 percent versus the firms 2006 third quarter earnings. The driving factor in Morgan Stanleys losses was a write-down of $940 million in leveraged loans, but it also reported $480 million in losses on its quantitative equity funds. There was a silver lining in the numbers: the performance of the brokerage and asset management division. Brokerage reported profit increases of 9 percent while asset management posted an impressive increase of 62 percent. Revenue from commissions also increased from $880 billion to $1.3 billion. At the time the third quarter earnings were reported, Chief Financial Officer David Sidwell said that the losses would not deter Morgan Stanley going forward, stating that Risk is crucial to our survival.
Changes afoot
In November 2007, Morgan Stanley CEO John Mack made some management changes in the wake of the billions in losses tied to subprime loan trading. The most notable (and surprising) departure was that of co-president Zoe Cruz, who had overseen Morgan Stanleys trading and risk operations. Cruz (the 16th most powerful woman in the world, according to Forbes magazine) was widely seen as Macks most likely successor in the CEOs office, and earlier, Mack had insisted that she would not be fired because of the large trading loss. But as the bank faced additional multibillion-dollar write-downs, the largest losses in Morgan Stanleys history, he changed his mind. According to New York magazine, in its cover story entitled Only the Men Survive, the 52-year-old Cruz was called into John Macks office one day in November 2007 and promptly fired. Ten minutes later, she left Morgan Stanleys headquarters, and never returned.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Stanley
On December 1, 2007, Walid Chammah and James Gorman were installed as new co-presidents of the firm. Chammah, who had been serving as global head of investment banking and CEO of Morgan Stanleys international operations, now oversees the institutional securities division. Gorman, who had been chief operating officer of the global wealth management group, oversees wealth management and asset management. At the same time, Mack created a new office of the chairman, installing Robert Scully as its head. Scullys task is to build relationships with key clients, especially global sovereign investors. Michael Mitch Petrick, head of Morgan Stanley Principal Investments, was appointed to oversee the firms trading business and serve as co-head of institutional securities sales and trading.
Indeed, Morgan Stanleys non-mortgage businesses had a fairly strong year. Investment banking revenue was up 31 percent over 2006, climbing to a record $5.5 billion. This result was driven by gains in advisory revenue, which was up 45 percent from the previous year. Underwriting revenue also increased 21 percent. Global wealth management and asset management both delivered record results, thanks to both increased productivity and increased client business. Fixed income sales and trading posted 62 percent gains in interest rate and currency products, mortgage woes notwithstanding, and fixed income underwriting revenues of $1.4 billion set a new firm record. Equity sales and trading saw revenue rise 38 percent from 2006, with much of the growth coming from the prime brokerage and derivatives businesses.
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trading group managed to bring in the best quarter in its history, but Morgan Stanley also took two write-downs, worth a combined $2.3 billion, related to its mortgage and loan businesses. In the first quarter of 2008 Morgan Stanley also had more deals in the pipeline. Designer Tommy Hilfiger, whose brand was taken private by Apax Partners, hired Morgan Stanley to manage a forthcoming IPO. And in February 2008, news broke that Morgan Stanley and The Blackstone Group were advising Microsoft on its $44.6 billion bid for Yahoo. Morgan Stanley also announced some restructuring efforts in February 2008 that not only resulted in the closing of its mortgage lending unit, Advantage Home Loans, but also 1,000 job cuts in operations, technology, asset management, and other units in the U.S. and in England.
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Stanley
Settle in
Work hours tend to be long. While the hours were typically market hours, workers have a tendency to go above and beyond the call of duty of a regular basis. Most employees arrive early and remain long after the market closes. Sources also report that six-and-a-half days a week in the office is normal, and add that its standard to start earlyaround 7:30and leave around 6 or 7 p.m. One insider admits that when it comes to hours spent at the office, Morgan is tougheven for an I-bank.
Melting pot?
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Diversity, some insiders say, is very goodalthough others say a more diverse culture is severely warranted for this whiteshoe firm. And while Morgan Stanley may get a passing grade on the ethnic diversity frontone insider says the bank is well diversified and includes international employeesits treatment of women may leave a little to be desired. One contact reports that the culture is not friendly toward women, and another adds somewhat resignedly that banking is one of the oldest boys clubs in the worldand I have no idea how to change it. That said, four women sit on Morgan Stanleys management committee and two women have seats on its board of directors. In addition, Morgan Stanley has been named one of the Top 50 Companies to Work For by Working Mother magazine for five consecutive years, and the firm offers several women-specific initiatives such as conferences, workshops, internships and a womens employee networking group with over 900 members. As for the firms immediate outlook, one insider notes, We just had a massive layoff across regions and divisions due to the subprime crisis, adding, The companys overall strategies are still on right track, but there is inevitable aftereffects of layoffs and some good people had to leave. Another contact says that the tough times are not Morgan Stanley-specific: Right now, the banking industry in general is going through a rough time due to the economy.
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VAULT TOP 50
4
PRESTIGE RANKING
Lehman Brothers
RANKING RECAP
Quality of Life #5 Best Employers to Work For #5 Overall Satisfaction #6 Offices #7 Selectivity #8 Treatment by Managers #9 Training #11 Hours #13 Compensation Diversity #5 Diversity with Respect to GLBT #6 Overall Diversity #6 Diversity with Respect to Women #8 Diversity with Respect to Minorities
745 Seventh Avenue New York, NY 10019 Phone: (212) 526-7000 Fax: (212) 526-8766 www.lehman.com
BUSINESSES
Capital Markets Investment Banking Investment Management
THE STATS
Employer Type: Public Company Ticker Symbol: LEH (NYSE) Chairman & CEO: Richard S. Fuld Jr. Revenue: $58.9 billion (FYE 11/07) Net Income: $4.2 billion No. of Employees: 28,600 No. of Offices: 65
KEY COMPETITORS
Goldman Sachs Merrill Lynch Morgan Stanley
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UPPERS
Exposure to brand name clients Bankers are incredibly intelligent and ambitious, yet caring and down-to-earth Proactive about diversity
DOWNERS
Expense management is very tight A ring below Goldman and Morgan Stanley in terms of compensation Suits every day
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
www.lehman.com/careers
Always at or near the top High profile, but has not done well in the market downturn Leader, strong track record, good employee benefits Great reputation; have had troubles lately, but they should recover
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
THE SCOOP
Award-winning businesses
Lehman Brothers business lines include its capital markets business (equity and fixed income), investment banking and investment management. These divisions work closely together, and North American bankers collaborate with colleagues in the Asia-Pacific and EMEA geography groups on cross-border transactions. Lehman Brothers fixed income and equities capital markets divisions encompass traders, salespeople and origination specialists. The investment banking division serves corporations and governments worldwide, offering financial advisory and capital raising services. Investment bankers are organized by geography, product and industry. Product groups include mergers and acquisitions, equity capital markets, debt capital markets, leveraged finance, private capital markets and restructuring. Lehmans industry groups cover communications, consumer and retail, financial institutions, financial sponsors, health care, industrial, media, natural resources, power, real estate and technology. The investment management division consists of three businesses: private investment management, asset management and private equity. T In 2007, Lehman was ranked the No. 1 most admired securities firm by Fortune magazine, and Barrons named CEO Richard S. Fuld to its Worlds Most Respected CEOs list. The firm also placed No. 1 in both equity and fixed income research on Institutional Investors All-America polls for the fifth consecutive year. Institutional Investors inaugural survey of Americas best investment banks, released in December 2007, placed Lehman No. 1 in secondary equity offerings and No. 2 in asset securitizations, IPOs and M&A advice to buyers.
Henry Lehman, a German immigrant, opened a small commodities brokerage and trading firm in his new home of Montgomery, Ala., in 1844. Six years later, his brothers Emmanuel and Mayer joined him in the business, which they named Lehman Brothers. The Lehmans opened a New York office in 1858 and became members of the New York Stock Exchange in 1887. In the early 20th century Lehman rose to prominence as a financier of now-legendary retailers like R.H. Macy & Company, the F.W. Woolworth Company and Sears, Roebuck. Later, the firm had a hand in building the Golden Age of Hollywood, advising on the consolidation of major movie chains and providing startup financing for studios like Paramount and 20th Century Fox. American Express acquired Lehman Brothers in 1984, part of a short-lived attempt to provide a complete range of consumer and business financial services. Lehman was divested in 1994, at which point it launched its own IPO and began trading on the New York and Pacific exchanges. Today, Lehman is a fully independent public company with global headquarters in New York, Tokyo and London. Although it has more than 50 offices worldwide, Lehman follows a guiding principle of One Firm, with strong links between its businesses and office locations.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
Overall in 2007, Lehmans capital markets revenues rose just 2 percent over 2006. Investment banking and asset management picked up the slack, climbing 24 percent and 28 percent, respectively.
Deluxe deals
Lehmans advisory business stayed strong in 2007, and the bank had a hand in some of the worlds biggest M&A deals for the year. Lehman advised Dutch bank ABN AMRO on its record-setting $99.4 billion sale to a banking consortium made up of the Royal Bank of Scotland, Fortis and Santander. Lehman also advised General Electric on its $11.6 billion sale of GE Plastics to the Saudi Basic Industries Corporation, and guided Triad Hospitals through its $6.4 billion merger with Community Health Systems. (This deal created the largest publicly traded hospital company in the United States.) Lehman also served as sole active bookrunner for CVS Caremarks $5.5 billion high-grade bond deal, the largest such transaction in the United States in 2007. By deal value, Lehman ranked No. 9 for worldwide announced M&A, according to Thomson Financial (now Thomson Reuters), and No. 7 for worldwide completed deals. These ranks represented 278 deals worth $767.1 billion and 240 deals worth $745.4 billion, respectively. On the U.S. league tables Lehman made the top five, placing No. 3 in announced transactions and No. 4 in completed. In global debt, equity and equity-related deals, Lehman held on to its No. 6 ranking in 2007, and held steady at No. 9 in global equity and equity-related underwriting. In global IPO volume, the firm rose two spots to No. 9. Meanwhile, Lehman slipped one spot to No. 5 in global debt deals, but rose one to capture the top spot in global mortgage-backed underwriting. It held on to its No. 1 ranking in U.S. mortgage-back securities and fell one spot to No. 6 in U.S. investment grade debt deals. For the first half of 2008, Lehman ranked No. 7 in worldwide announced M&A, advising on several large deals, including Altria Groups $113 billion spin-off of Philip Morris International (the largest spin-off in history), Hewlett-Packards $13 billion acquisition of Electronic Data Systems and Chinalcos $14.3 billion acquisition of a 12 percent stake in Rio Tinto. Lehman also ranked No. 5 in worldwide equity and equity-related underwriting for the first half of 2008, leaping from No. 9 in the first half of 2007. And for the same period, in U.S. equity and equity-related deals, the firm jumped to No. 2 from No. 6.
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Think global
In January 2008, Lehman announced some changes in its global mergers and acquisitions organization. Paul G. Parker, former U.S. head of M&A, was named global co-head of mergers and acquisitions. He now shares the post with Mark Shafir, who was also named chairman of global M&A and who has lead global M&A teams since 2003. The two men report to Hugh Skip McGee III, global head of investment banking. McGee noted that the change was the logical response to demand. As our M&A business continues to grow and becomes increasingly global, it is appropriate that the organizational structure of the franchise expand as well, he said. Shafir and Parker have each led some headline-worthy deals over the years, including Cingulars acquisition of AT&T Wireless, Kmarts merger with Sears and the merger of Wellpoint Health Networks with Anthem, Inc.
Oz and Russia
Further pushing its global business, Lehman has recently devoted resources to its operations in Australia and Russia. In early 2007, the firm acquired Australias Grange Securities, hiring 40 investment banking, equities, asset management, fixed income and real estate professionals to complement Granges workforce of 120. Then in December 2007, Lehman completed a rebranding effort: Grange Securities and Grange Asset Management became Lehman Brothers Australia Ltd. and Lehman Brothers Asset Management Ltd. According to Jesse Bhattal, Lehmans Asia-Pacific CEO, the firm is preparing to capitalize on the Down Under economys extraordinary growth potential. In January 2008, Lehman announced that it had been granted a broker-dealer license by Russias Federal Financial Markets Service. This will allow the firm to provide securities trading in Russia, and Lehman says it plans to roll out a full range of investment banking and capital markets services. Lehman also hired Peter Ghavami, a former head of commodities at UBS, to lead Russian expansion efforts in partnership with Nicholas Jordan, head of IB Russia.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
Mortgage hurts
In February 2008, Lehman Brothers confirmed that it would be further reducing its workforce by 200 jobs throughout the year in its mortgage capital business in the U.K. These were in addition to the approximately 3,000 cuts that were announced in late 2007 and early 2008. In January 2008, Lehman announced plans to lay off approximately 140 fixed income employees. Earlier in the year, Lehman had closed its BNC Mortgage subsidiary, eliminating more than 1,000 jobs. In mid-January, Lehman decided to reduce its mortgage business even further, suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary, which meant 1,300 more pink slips were handed out. Previously, in September 2007, the firm restructured its residential mortgage origination business, scaling down its operations in the U.K. and U.S., and closing down its Korean mortgage unit completely. This restructuring meant the loss of approximately 850 jobs worldwide. At the same time, Lehman said its remaining residential mortgage businessesincluding Aurora Loan Services, ELQ Hypotheken and Libertuswould operate under the name Lehman Mortgage Capital.
The firm made more personnel moves later in June, naming ex-employee Michael Gelband head of its capital markets department. Gelband had left the firm in 2007a departure that insiders attributed to differences of opinion with upper management regarding Lehmans fixed income division. The firm also announced that Alix Kirk, former co-chief operating officer of Lehmans fixed income department, is returning to the Lehman fold as global head of principal investing. Separately, after the firm reported particularly gloomy second quarter results, new Lehman President Bart McDade and CEO Dick Fuld said theyd be giving up their 2008 bonuses. For Fuld, that could mean foregoing several million dollars. In 2007, Fuld received about $40 million in salary, and according to Fortune magazine, hes raked in about $500 million from stock options and stock awards since 1994.
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
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Unstoppable momentum
Lehmans culture is collegial with emphasis on working with other teams. This creates momentum across all geographies and products. Insiders say the firms One Firm motto is not just talk, but executed every day. The firms members are incredibly intelligent and ambitious, yet caring and down-to-earth. Most are friendly with a balanced outlook on life. A contact says, Lehman is a diverse place, where emphasis is placed on doing the right thing. This ethical environment is warm, filled with employees who are always willing to help each other out. Sources say this makes Lehman the best place to work on Wall Street, hands down. Its a firm that has it all. This is giving Lehman rising prestige on Wall Street, as people hear more and more about the challenging and interesting projects, and great deal flow that the firm offers.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
Lehmans extremely smart junior employees get a lot of respect from upper managers. We are given freedom to run with things because senior management trusts our abilities. Employees also have the freedom to telecommute if necessary. The firm makes a great investment in technology, which makes it easy to work remotelyand people do it; its not frowned upon. A contact says, Senior managers care about the career development of junior team members. It is a true meritocracy in which junior employees receive responsibility and exposure quickly. This work hard-play hard firm really values employees and makes concerted efforts to keep their valued employees. All of these factors give Lehman huge momentum and a high level of pride compared with peers. Make no mistakeit is still an investment bank, and thus, an extremely intense environment but insiders say employees collaborative and fun attitudes make the long hours much more bearable.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers
Lehman also scores high in training. The firms training program is large, in-depth, multidisciplinary and well organized. Sources say they are constantly being offered training options that are interesting and relevant. The initial three-month training for associates covers a range of topics, including technical skills, interpersonal skills and tips for managing your career. The six-week analyst training is intense and very well done, offered by the firms top-performing employees. Sources say training at Lehman is excellent and taken very seriously. It is one the firms strengths.
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VAULT TOP 50
5
PRESTIGE RANKING
BUSINESSES
Investment Banking Advisory Consumer/Retail Diversified Industries Financial Institutions Financial Sponsors Healthcare Natural Resources Rates Real Estate & Lodging Research Research Technology, Media & Telecom Research Research Corporate Quantitative Research Credit Credit Portfolio Group Equity Sales & Trading Commodities Credit Currencies Emerging Markets Equities Rates
KEY COMPETITORS
Citi Deutsche Bank Goldman Sachs Lehman Brothers Merrill Lynch Morgan Stanley
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UPPERS
Our scale, scope and prestige People are fantastic Potential for lateral mobility
THE STATS
Employer Type: Division of JPMorgan Chase & Co. Chairman & CEO, JPMorgan Chase & Co.: Jamie Dimon Revenue: $18.1 billion (FYE 12/07) Net Income: $3.1 billion No. of Employees: 25,000 (approx.) No. of Offices: 2,300* *JPMorgan Chase & Co.
DOWNERS
Can seem too big Some nepotism still goes around
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
www.jpmorgan.com/careers
The best integrated (non-pure play) bank out there right now One of the most prestigious Dynamic CEODimon is impressive Market leader
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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank
THE SCOOP
Rescuing Bear
In March 2008, after news surfaced that New York-based Bear Stearns was facing a cash shortage in the midst of the industrywide credit crisis, the firms clients withdrew approximately $17 billion in two days, sending what was already a financial institution on very shaky ground into proverbial earthquake mode. As a result, J.P. Morgan stepped in, announcing that it would be purchasing Bear for $236 million in stockor just $2 a share, 97 percent less than Bears market value just one week earlier. (The backlash from Bear shareholders at such a measly per share offer resulted in J.P. Morgan raising its bid one week later to $10 per share.) To help finance the deal, the Federal Reserve agreed to provide J.P. Morgan with a $30 billion credit line, which, according to The Wall Street Journal, was believed to be the largest Fed advance on record to a single company. The news of Bears end meant ominous things for financial markets (and beyond), and the U.S. Federal Reserve immediately cut lending rates for banks in an effort to try to stabilize the wildly fluctuating markets. Meanwhile, in a statement, the firms CEO Jamie Dimon assured Bear Stearns clients and counterparties that they should feel secure that J.P. Morgan is guaranteeing Bear Stearns counterparty risk. In April 2008, J.P. Morgan also added some security to more than 100 undergraduate and grad-school students. After it was announced that about half of the recent job offers made by Bear Stearns would be rescinded, J.P. Morgan assured summer interns affected by the announcement that they will be offered 10 weeks of pay if they work for a certain nonprofit organization and will get an early chance to apply for fall positions. Meanwhile, the firm said that graduates denied full-time jobs will keep their signing and relocation bonuses and will have access to career services. The cuts came mostly in areas where there was overlap with J.P. Morgan such as M&A, equity underwriting and corporate finance. Offers in investment management and other areas such as commodities, merchant banking and prime brokerage (Bears jewel) were said to be unaffected. In May 2008, Dimon announced that J.P. Morgan had secured positions available for about 40 percent of Bears 14,000 employees; at the end of the month, the acquisition became official, as Bear Stearns shareholders approved the deal in a brief meeting presided over by the firms chairman, James Cayne.
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Making of a giant
Parent company JPMorgan Chase & Co. takes its name from the merger between two diversified financial institutions with long histories. J.P. Morgans roots go back to 1838, when American George Peabody opened a London merchant bank. Chase Manhattans history can be traced back to 1799, when Chases first predecessor company, The Manhattan Company, was chartered to supply water to New York City. The merger between the two, valued at approximately $38.6 billion, was completed on the first day of 2001, instantly creating the third-largest financial institution in terms of assets in the U.S.
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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank
On July 1, 2004, JPMorgan Chase & Co. officially merged with Bank One Corporation for a purchase price of $58.5 billion. Upon the merger, the combined company possessed $1.1 trillion in assets, rivaling Citigroups $1.2 trillion.
On the 2007 Thomson Financial (now Thomson Reuters) banking league tables, J.P. Morgan was No. 4 in both worldwide announced and completed M&A deals, advising on 433 transactions worth $1.07 trillion and 359 transactions worth $820.4 billion, respectively. In the U.S., J.P. Morgans rank was slightly lower, with the firm placing No. 5 in completed and announced M&A. The bank was also the years No. 2 bookrunner in global debt, equity and equity-related deals, both by imputed fees and by deal proceeds. In global debt, it was again the No. 2 bookrunner, working on 1,294 deals with proceeds of $476.3 billion. (In these categories, rival Citi took the No. 1 spot.) On the equity capital markets tables, J.P. Morgan was tops, taking in $1.7 billion in feeswhich beat runner-up UBSs $1.6 billion in equity underwriting fees. At the end of first half 2008, J.P. Morgan ranked No. 1 in several categories, including global debt, global equity, global loans, and global debt, equity and equity-related deals. The firm also ranked No. 1 in global fees for the first six months of the year, according to Dealogic, booking $2.5 billion in fees. A major deal contributing to these results was acting as lead left bookrunner on Visas $19.7 billion initial public offering, the largest IPO ever completed in the U.S. and the second largest ever completed worldwide. For its work, the firm recently received numerous accolades across the Atlantic; in Euromoneys 2008 Awards for Excellence, J.P. Morgan was named the Best Global Emerging Markets Investment Bank, Best Global Debt Capital Markets House, Best M&A House in Asia and Best Bank in North America.
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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank
According to the Financial Times, Dimon made a personal recruiting call to Blairs office. I went to visit him and we hit it off, Dimon said, adding that he and Blair will try to make the world a better place and have a bit of fun doing it. Toward that end, Dimon said that Blairan accomplished guitar playerwas going to teach him some chords after work.
GETTING HIRED
Welcome, superstars
Want a job at J.P. Morgans investment bank? Then you need to be the best of the best, according to sources. The firm is extremely selective, and the process is very competitive, especially if you do not attend one of J.P. Morgans core schools. We are fiercely protective of what weve built an executive explains. Few people have the right mix of raw intelligence and humility to succeed long term at J.P. Morgan. Looking at the numbers, one source says, The ratio of people who are qualified versus people who actually get hired is eight or 10 to one. Adds a contact, J.P. Morgan typically receives more than 100 resumes for each analyst position. Now for the good news: J.P. Morgan is very open-minded and aware of the fact that talented candidates come in many forms. The firms diverse employee base actively participates in the interviewing and selection process, which is described as fair and unbiased. We want the best and brightest, a senior insider says, and will always find spots for those we deem real superstars.
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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank
Ready to go
Doing a summer internship here definitely gives you a leg up on the competition if you do well, says a source. The firm hires most of its analyst class through the summer internship program. Interns get to know the people, products and culture of J.P. Morgan, and say that if you get an internship, its your job to lose. The intern training program was comprehensive, says a current employee. I was actually put in a position where I could contribute to the business. Indeed, J.P. Morgan makes sure interns are not viewed as merely job shadowers for the summer. I worked on live mergers and acquisitions and private placement deals, says a former intern who took a full-time position following the internship. Another source says that the firm sets up the summer program so that interns have a chance to meet both senior and junior people in other groups throughout the bank.
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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank
Proud to be diverse
Diversity is a challenge the entire industry faces, but J.P. Morgan employees say their firm spends a meaningful amount of time recruiting women and minorities. The firm maintains relationships with Toigo, MBA Jumpstart and SEO, and recently created a new scholarship and internship program called Launching Leaders, which is targeted at black, Hispanic and Native American students in their freshman and sophomore years of college. Students can also take part in J.P. Morgan Launching Leaders Experience, Winning Women and Proud to Be events, which provide students an inside look at the firm and industry through training sessions, networking and job shadowing. One analyst says that there are many female achievers at the bank who have reached very senior roles and serve as great mentors. J.P. Morgans Junior Women in Banking program plans events that allow women to interact with senior management, too. Respondents like to tout the number of diversity awards J.P. Morgan has won, including its ranking among the Top 5 Companies for Diverse MBAs by DiversityMBA magazine and the firms 100 percent rating on Human Rights Campaigns Corporate Equality Index. J.P. Morgan has a great networking group for gays and lesbians called PRIDE that sponsors monthly events and encourages networking. And the firm offers events and networking opportunities for GLBT employees and potential employees, under the Proud to Be brand. The firm is committed to diversity at the highest levels, one man says. Jamie Dimon leads J.P. Morgans corporate diversity council. The view isnt that diversity is good for diversitys sake, explains an executive. Weve found that diversity of opinion and background leads to a better end product for our clients than if we had a bunch of people with identical backgrounds trying to tackle the same problem.
Express yourself
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Plain and not luxurious sums up J.P. Morgans current digs, but the firm is renovating its Midtown headquarters and moving the majority of its investment bank employees into 383 Madison Avenue, the old Bear Stearns headquarters. In the meantime, employees enjoy a nice Starbucks lounge in the building and an extensive art collection. Average cubes is the norm for employees; at least the San Francisco office boasts a great view of the San Francisco Bay. Dress code ranges depending on group, explains an analyst. Industry coverage groups tend to be more formal, while product groups tend to be formal only when client-facing. The dress code is pretty clear on what is and is not appropriate, another analyst adds, so people can definitely express some personal style while still working in a conservative, professional place.
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VAULT TOP 50
6
PRESTIGE RANKING
Merrill Lynch
RANKING RECAP
Quality of Life #6 Compensation #10 Overall Satisfaction #10 Best Employers to Work For #11 Offices #12 Selectivity #12 Treatment by Managers #12 Training #14 Hours Diversity #13 Diversity with Respect to GLBT #15 Diversity with Respect to Women #15 Diversity with Respect to Minorities #17 Overall Diversity
4 World Financial Center 250 Vesey Street New York, NY 10080 www.ml.com
BUSINESSES
Global Markets & Investment Banking Global Wealth Management
THE STATS
Employer Type: Public Company Ticker Symbol: MER (NYSE) Chairman & CEO: John A. Thain Revenue: $62.6 billion (FYE 12/07) Net Income: -$7.8 billion No. of Employees: 63,100 No. of Offices: 900
KEY COMPETITORS
Citi Credit Suisse Goldman Sachs Lehman Brothers Morgan Stanley
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UPPERS
Smart people you can learn a lot from Not snotty Ability to work on incredible transactions
DOWNERS
Red tape Hours can be long Politics
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
See ml.com/careers
Market leader, highly sought after, competitive Falling in prestige Good name despite subprime meltdown Looks for all kinds of studentsvery diverse
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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch
THE SCOOP
So long, Stan
Perhaps the biggest news at Merrill Lynch in late 2007 was the ouster of its chairman and CEO, Stan ONeal. Rumors of his demise began in October 2007, when Merrill reported a third quarter loss of $2.3 billion and an additional $8.4 billion charge linked to failed credit and other mortgage-related investments. It was the biggest quarterly loss in Merrills 93-year history. After Merrills board announced that ONeal would retire, the firm quickly appointed Alberto Cribiore, a Merrill board member and founder of the Brera Capital private equity firm, as interim nonexecutive chairman. Cribiore led a brief search for ONeals replacement, settling on New York Stock Exchange Chief John Thain in November 2007. (Interestingly enough, Thain had also been considered a front-runner for the chief executive position at Citigroup, which was left open when Charles Prince was forced to step down because of that banks losses.) Win Smith Jr., a former chairman of Merrill Lynch International and son of one of the firms first executives, called Thain a very good candidate for the future. Smith added, He has a great background, did a good job stepping into the NYSE when it had troubled times, and comes out of a firm that has a very strong culture. He can help bring the pride back. Indeed, Thain is widely seen as one of Wall Streets best and brightest. He began his career at Goldman Sachs, rising from a bond trader position to chief operating officer. At the New York Stock Exchange, he took over when former head Richard Grasso was fired amidst controversy over his salary. Thain managed to restore confidence within the NYSE board, helped the Exchange go public and led the acquisition of Euronext, creating the worlds first trans-Atlantic stock exchange.
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Thain rebuilds
Thain had his work cut out for him at the troubled Merrill Lynch, however. Bad news included the last earnings reports of 2007: Merrill posted a $9.83 billion fourth quarter loss. This figure reflected $16.7 billion of write-downs on leveraged loans and mortgage-related investments, and far exceeded analysts expectations. For the full year 2007, Merrills net loss was $7.8 billion, a far cry from its net income of $7.5 billion in 2006. Thain tried to make the best of the news, saying that while the results were unacceptable, Merrill still had the capital base now that we need to go forward. He also told The New York Times that Merrills investment banking, equity capital markets and global wealth management businesses did really, really well in 2007, achieving record results for the year. He added that contrary to speculation, Merrill had no plans to sell its stakes in BlackRock or Bloomberg L.P. Still, Thain admitted he had some rebuilding work to do, and criticized the fixed income group for its heavy losses. Thain took several steps to improve Merrills risk management protocol, hiring Nelson Chai as the new chief financial officer. He also tapped Noel B. Donohoe to co-head the risk department with Edmond N. Moriarty. Another new procedure is a weekly risk
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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch
meeting, at which Thain discusses risk issues with all business heads. Finally, in early 2008, Thain indicated that there would be some general layoffs during the year but said they are not going to be significant. Previously, in December 2007, largely thanks to Thain, Merrill also received a much-needed cash infusion by selling stock worth $6.6 billion to foreign investors. This sale came one month after Merrill sold $6.2 billion stakes to Singapores Temasek Holdings and Davis Selected Advisors. Januarys investors included the Kuwait Investment Authority, the Korea Investment Corporation and Mizuho Financial Group of Japan. According to Merrill, none of these groups will have any influence in the firms operations or the boards decisions.
Streamlining
In December 2007, Merrill sold its life insurance businesses, Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York, to insurance conglomerate AEGON USA for $1.25 billion in cash. Part of the deal involved a strategic partnership that allows AEGONs Transamerica companies to supply insurance and investment products through the acquired subsidiaries. Meanwhile, Merrill will continue to offer some insurance services to clients in its core advisory and distribution businesses. Also in December, Merrill announced that it would sell its middle-market commercial finance business, Merrill Lynch Capital, to GE Capital. Based in Chicago, Merrill Lynch Capital includes corporate finance, equipment finance, real estate finance, energy and health care finance units. It added more than $10 billion in assets and $5 billion in commitments to GE Capitals existing holdings. Merrill CEO John Thain said the sale reflects Merrill Lynchs continued strategic focus on divesting noncore assets and optimizing capital allocation, while also enabling the redeployment of approximately $1.3 billion of capital into other parts of our businesses.
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Eugene steps in
In February 2008, former president of Freddie Mac Eugene McQuade took over as president and vice chairman of the Merrills banking group, which primarily provides loans and mortgages to the firms clients. McQuade, who resigned from Freddie Mac in September 2007 after turning down an offer to become the firms CEO, replaced McIntyre Mack Gardner, who stepped down in January 2008 shortly after Merrills former CEO, Stan ONeal, resigned. McQuade has also previously worked for Bank
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of America and FleetBoston Financial. Hell oversee Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co., reporting to Robert McCann, president of the firms global wealth management unit. More recently, Tom Sanzone joined the senior management team as executive vice president and chief administrative officer. His responsibilities include overseeing the firms technology, operations and corporate services groups. Additionally, Fares Noujaim was named president of Middle East and North Africa, a newly created senior management position. Based in New York and the Middle East, Noujaim is also global head of sovereign wealth funds.
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Ivy League schools, and at least one source says, I think they should branch out more. While the bulk of new hires come straight from schools, off-campus initiatives are in place.
Technical challenge
The hiring process is very similar to other investment banks, insiders say. For students, There is an on-campus interview process to screen the best candidates. Selected students are invited to New York for a Super Day. At company headquarters, candidates usually interview with four or five individuals on-site, mostly senior employees on the business side. The interview process is rigorous, warns a source. During each round, a candidate can expect to meet with six to 10 bankers in various industry and product groups, an analyst says. One contact recalls meeting with a diverse group of interviewers, from the group head to second-year associates. After surviving Super Day, the student is either given an offer or asked to come back for more interviews. Interview questions at Merrill can be very technical, such as stating the three basic financial statements and how they tie together. There may also be specific questions about prior work experience, interest in the business and knowledge of the market. From my experience, the interviews can range in material from the typical fit interview to highly technical questions, an analyst says. A candidate can expect almost every interviewer to ask them to walk through their resume highlighting relevant work and leadership experience.
Want in?
An internship is a huge advantage for those seeking employment at Merrill Lynch. Most of those hired had an internship with us, says a contact. I think it is critical, another agrees. One former intern says that the firm emphasizes hiring the best talent into summer positions and tries to retain those employees for full-time positions. My colleagues and I have noticed that, as a result, Merrill performs less recruiting for full-time positions than our peers, but it is more difficult here to land a summer position. The firm offers summer internships for analysts (undergrad) and associates (grad students). I essentially functioned as a firstyear associate while I was a summer associate in investment banking. I was paid, pro rata, a first years salary, says one employee. A former summer analyst reports earning the same salary as a first-year analyst, adding that the work is geared toward building up to that of a first-year analyst. Interns are more likely to move to the head of Merrills hiring line, but they get other benefits, too. Networking and mentoring offered during the summer allows you to build what could be lifelong friendships, an ex-intern says. The global markets summer rotational program allows you to test more than one part of the business to find a good fit for you and your skill set. Interns may participate in several networking events throughout the summer and are often staffed directly on projects with other employees. Work assignments can vary based on the demonstrated ability of the intern as well as the workload, but some summer analysts may even get the opportunity to travel on a road show or to client meetings.
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Intense individuals
Merrill Lynch can be intense (perhaps because there are many smart people), but the firm still allows you to be an individual in a team environment. As one employee explains, I chose Merrill because the atmosphere was more congenial than other places. Others agree that its much more flexible and freer than other bulge bracket firm culturesand comfortable. That means, You can be you and be rewarded for it. The culture is a meritocracy, not cutthroat. You can easily develop a lasting and beneficial relationship with senior management, one source says. Because people focus on results and ability rather than title and seniority, employees at all
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levels are given the opportunity to take on a lot of responsibility. The camaraderie and instantly-recognizable brand name are other plusses; on the minus side, sources say its a very large place, so one can get lost in the shuffle. Other complaints include occasionally losing a mandate to Goldman, and recent bad press tied to 2007 earnings reports and write-downs. Still, an insider says, the firm is headed back in the right direction after our fourth quarter [2007] setback. Overall respondents describe themselves as extremely satisfied. Merrill is an awesome place to work and cultivate a long-term career, says a source. I feel challenged and continue to see opportunity in the future.
Merrill Lynch sources give average marks to their pay but enjoy perks that include discounted rate at the Merrill Lynch gym, car service to and from the airport when traveling, and transportation and dinner covered for late-night work. The employee stock option program allows us to buy stock at a five percent discount, and because of Merrill Lynchs stake in BlackRock, employees are provided with a wide array of fund options for the 401(k) program. But they work hard for the benefits. My hours are very intensethere is no downtime while I am at work, a contact says. Product groups have more manageable hours than others within the investment bank; one associate says that the hours can be brutal at times. He adds, The upside is that they vary, so there can be weeks when you get out at a reasonable hour and weekends that are mostly free, although it is often the opposite. However, there is no pressure to bill, just to produce. The number of hours I spend in the office on a given week is reasonable given the industry standard, a source says. What is important, I feel, is that at Merrillin my group at leastthere is no such thing as face time, and your superiors try to provide as much clarity with regard to scheduling as possible. My superiors recognize that the ability to get rest and exercise when able only adds to the end product, adds another. One insider lays out the schedule: As a first-year analyst in most product and industry groups at Merrill, you can expect to work between 85 and 95 hours per week, including weekends. The load can lighten as rank rises, though, since employees develop closer relationships with senior bankers and typically gravitate toward working with smaller deal teams, which is more manageable.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch
Great management
The Merrill culture strives for flatness, sources say. I have found that the painfully hierarchical reputation of Wall Street investment banks does not ring true at Merrill, an analyst says. While there are always exceptions to the rule, I think Merrill more than most banks encourages a team atmosphere with less distance between the top and bottom of the ladder. Another says, Most of the managers express a strong desire to develop junior talent and most have an open-door policy. Likewise, I feel that I spend a great deal of time, especially during the summer, assisting the summer analysts and associates in getting up to speed. My managers are great, a contact raves. They have created a very open and easy-going work environment. This allows for more productivity. Another agrees, saying, Im extremely fortunate to work for a direct superior who constantly teaches, gives me significant responsibility, expects a lot from me and is concerned with my career development.
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VAULT TOP 50
7
PRESTIGE RANKING
Lazard
KEY COMPETITORS
Goldman Sachs Lehman Brothers Morgan Stanley
BUSINESSES
Asset Management Financial Advisory
UPPERS
Very prestigious and active firmits pure advisory model is winning a ton of business Much safer place to work as far as cuts goit can absorb more pain because it doesnt have massive overheard.
THE STATS
Employer Type: Public Company Ticker Symbol: LAZ (NYSE) Chairman & CEO: Bruce Wasserstein Revenue: $2.01 billion (FYE 12/07) Net Income: $322.7 million No. of Employees: 2,490 No. of Offices: 40
DOWNERS
Because Lazard has less people, people tend to work harder than they do elsewhere Salary used to be way above market but in recent years has been at market or only marginally higher
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EMPLOYMENT CONTACT
www.lazard.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Top-notch firm, well-respected across numerous industries High prestige but they kill their workers Premier M&A shop Blue blood; often hear that its people are pretentious
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THE SCOOP
A public success
Lazards dynamic CEO Bruce Wasserstein had a plan when he took leadership of the company in 2002to expand the firms business so that the Lazard name would be known throughout the world. After six years, it seems he is succeeding. Lazards influence reaches almost every corner of the globe with offices in 40 cities across 21 countries on five major continents. This 160year-old company launched its IPO in May 2005. Since then, things have been steadily positive and a continued growth plan promises to make Lazard an even more renowned name in the annals of history. At Lazard there are two businesses only: financial advisory and asset management. Its respected mergers and acquisitions practice is divided into industry groups that include consumer, financial institutions, financial sponsors, health care and life sciences, industrial, power and energy, real estate and technology, media and telecommunications. Each industry group is managed by regional or global heads. Lazard also offers financial restructuring, government advisory, alternative investment fund raising and corporate finance services. Lazards asset management business is mainly comprised of equity products, but it also offers fixed income and alternative investments. Lazards principal executive offices are in New York, London and Paris.
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Business is booming
Times are good for Lazard, proving that even in a bear market, theres still money to be made. The investment bank was largely shielded from the losses in the subprime market in 2007 due to its prudent and cautious strategy of steering clear of mortgagebacked securities and leveraged buyouts. Its year-end numbers were impressive, with an annual net income of $322.7 million reflecting at 37 percent increase over last years numbers. Operating revenues also shot up to $2.01 billion, an increase of 28 percent from the year before. This boost was largely buoyed by the success of the financial advisory division which soared to a record $1.24 billion in revenue for the year. M&A surged upwards with annual revenue of $964.4 million, an increase of 22 percent for the year.
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Lazard also got a huge bump in finances this year from the growth of its financial restructuring business, which increased its operating revenue 80 percent from the previous year as of year-end 2007. The company worked on deals with distinguished companies such as Adelphia Communications, SunCom Wireless, Eurotunnel, Tower Automotive, New Century Financial Corporation, Northwest Airlines Creditors Committee, the UAW and Calpine. Lazard is also working on financial restructuring deals for Movie Gallery, Tarragon Corporation and Technical Olympic USA (TOUSA), among companies.
Granddaddy of M&A
The forces driving the windfall of cash in the M&A arena are due to Lazards involvement with some of the biggest deals of the year. In 2007, Lazard proved that its reputation as the granddaddy of M&A may not be overstated. The firm advised on several multibillion dollar sales including the $45 billion takeover of Texas power company TXU to an investor group led by KKR and TPG, the $16.5 billion merger between The Bank of New York and Mellon Financial, Nestls $5.5 billion acquisition of Gerber and Nestls $2.5 acquisition of the medical nutrition division of Novartis. Overall in 2007, Lazard ranked No. 2 in M&A deal volume for transactions under $100 million, according to Thomson Financial (now Thomson Reuters). It also ranked No. 11 in both worldwide M&A deal volume on all transactions and U.S. announced M&A. In a statement released at the time of 4th quarter earnings, Vice Chairman Steven Golub indicated that the firms M&A was posed for even more growth in M&A advisory, noting that during the fourth quarter and since the beginning of the year, the firm had worked on several deals, including Gaz de Frances 44.6 billion merger with Suez, Tranes $10.1 billion sale to Ingersoll-Rand, Resolution plcs 5 billion sale to Pearl Group, Louis Dreyfus 2.1 billion sale of its 29 percent stake in Neuf Cegetel to SFR and Sempra Energys $2.7 billion joint venture with the Royal Bank of Scotland.
Growth strategy
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Wassersteins global expansion plan completed several key acquisitions in 2007. The firm extended its business down under with the acquisition of Carnegie, Wylie & Company, an Australian independent financial advisory firm. The new company, operating under the moniker Lazard Carnegie Wylie, has offices in Melbourne, Sydney and Brisbane. Lazard also added middle-market investment bank Goldsmith Agio Helms to its empire in order to expand its reach for U.S. midsized private companies. The August 2007 increased Lazards access to U.S. markets such as Minneapolis and allowed the company to boost its middle-market financial advisory business. Lazard also opened a new office in Boston in September as well as one in Zurich, which will expand the European arm of the financial advisory business. The firm also activated a cooperation agreement with Austrian bank Raiffeisen, which will allow it to jointly pursue financial advisory in Russia, and Central and Eastern Europe.
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League schools, as well as the University of Illinois, University of Virginia and University of Michigan. Lazard sends MBA recruiters to a similarly elite pool of universities and collegesHarvard, Wharton, Columbia, Chicago, Stanford and Berkeley. Sources say that theres a very strong representation of Wharton and Princeton at all levels inside the firm. Another adds, Most Lazard people are from the Ivy League, the University of Virginia or Duke. Its mainly a Northeast crowd. A recruiting schedule for investment banking and contact information for other departments are available at the firms web site.
Fit in
At a prestigious bank like Lazard, you might expect interviews to include some tough technical questions, but this isnt the case, say insiders. I found the interview process to be quite informal, remarks a source. Interviews are relaxed. That contact adds that the interview with her future boss was completely fit-basedno technical questions. One Lazard source who has conducted several interviews agrees, saying, Interviews are fair. I dont believe that undergrads should know all sorts of technical stuff. Were not going to ask technical questions to a history major at Brown. We might, though, ask where they think theyve learned analytical skills, or to tell us about a group project. A recent candidate says, My interview was very straightforward. I dont think these guys want to hear B.S. about culture; they want to hear that you are willing to work ridiculously hard and that you have the ability to hit the ground running. The contact does say that his interview was a bit more technical than others, but admits, maybe that was because I have a finance background. According to one insider, Lazard believes you can teach all that technical stuff to bright people. So we give [recruits] a chance to talk, to tell us what theyve been taught. Even so, expect a few questions to include some numbers such as, How many hours are in a week? and What would you say if I told you that youd be working on average almost 120 of them? (The answers are 168 and sounds good.) The firm does offer summer internships, and one Lazard intern-turned-full-time employee says during that program, I did typical first-year analyst work and was paid the same rate as a first-year [full-time] analyst. After that, it was very easy to talk to and get offers from all the other investment banks.
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Playing it safe
Lazard is a much safer place to work as far as cuts go, says a former banker. It can absorb more pain because it doesnt have massive overheard. Thats because Lazard is an advisory and asset management firm, absent of conflicts that other banks have: it doesnt underwrite securities, and it doesnt provide research. As a result, Lazard is in a good position, says a source. Other places are out of favor because of their research, insider trading and underwriting problems. However, the contact adds, A few years ago, during the Internet boom, we werent as flexible. Other banks were cashing in. In other words, While Lazard didnt soar the way some of its competitors did during the bull market, today its pure advisory model is winning a ton of business.
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VAULT TOP 50
8
PRESTIGE RANKING
11 Madison Avenue New York, NY 10010-3629 Phone: (212) 325-2000 Fax: (212) 325-6665 www.credit-suisse.com/ib
BUSINESSES
Corporate Clients Institutional Clients
THE STATS
Employer Type: Division of Credit Suisse Group CEO, Credit Suisse: Brady Dougan CEO, Investment Banking: Paul Calello No. of Employees: 48,100* No. of Offices: 57* *Credit Suisse Group
KEY COMPETITORS
Goldman Sachs Merrill Lynch Morgan Stanley
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UPPER
Training is the best on the Street
DOWNER
Hours can be intense
EMPLOYMENT CONTACT
www.credit-suisse.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Crme de la crme Inconsistent track record Solid: great deal flow and brand name recognition Not a fun place to work
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THE SCOOP
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Succumbing to subprime
In the fall 2007, Credit Suisses biggest domestic competitor, UBS, announced a $3.4 billion write-down as a result of mortgagerelated products in October, followed in December by the stunning announcement it would have to write-down an additional $10 billion due to collateralized debt obligations. For once, it looked like Credit Suisse had bested its biggest rival. Though Credit Suisse hadnt escaped unscathed, its mortgage losses were less than half of UBSsabout $1.6 billion in write-downs. Earnings were affected in the investment banking sector, but Credit Suisses private banking and retail banking divisions were both ahead of what analysts had predicted for them. The banks outlook on the future seemed rosy, as Credit Suisse projected the aura that it was less vulnerable than other banks in terms of its subprime exposure. However, as the new year rolled around, rumors quickly surfaced that Credit Suisse had not been transparent about the extent of its exposure to the subprime market. Swiss newspaper Sonntag released a report in early January predicting additional writedowns of $2.2 billion in the fourth quarter of 2007, sending the banks stock price into a downward spiral. The report also predicted that if there were a U.S. recession, Credit Suisse would face additional write-downs, possibly as much as $4.5 billion.
Award season
Despite its problems in the credit market, Credit Suisse managed to rack up an impressive number of awards during 2007 from a host of different sources. One of the more interesting honors bestowed upon the bank was the title of Best Foreign Investment Bank in Indonesia, an award given to it by both The Asset in its November Triple A Country Awards and Finance Asia in its Country Awards for achievement. Credit Suisse also managed to gather several more trophies in The Bankers annual investment banking awards, garnering top honors for the categories of Global Investment Bank of the Year, Best Leveraged Finance House, Best High Yield Bond House and Best Convertibles House.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Credit Suisses Investment Banking Business
Credit Suisse also was given kudos for its deals in 2007. The Asset awarded the firm recognition for two international deals: the $13 billion takeover of Corus by Indias Tata Group and the $1.3 billion KEB block trade. Euromoney also recognized the firms international prowess giving it awards for Best Debt House in Mexico, as well as the title of Best M&A House in Brazil, Central Asia, Germany, Indonesia, Kazakhstan, Latin America and the Philippines. As for the investment banking league tables in 2007, Credit Suisse ranked No. 6 in both global and U.S. announced M&A deal volume, according to Thomson Financial (now Thomson Reuters). Halfway through 2008, the firm ranked No. 5 in global announced volume and No. 9 in U.S. volume. On the equity charts, Credit Suisse leaped two spots to take the No. 2 ranking in global IPO volume in 2007, and ranked No. 7 in both global equity and equity-related underwriting as well as global common stock deals. In the U.S. in 2007, Credit Suisse ranked No. 7 in equity and equity-related deals, No. 8 for common stock underwriting and No. 7 in IPOs.
Cutting back
As almost every Wall Street was forced to do in late 2007 and early 2008, Credit Suisse began handing out some pink slips in January 2008 due to the subprime mortgage meltdown. After a rumor surfaced from inside Credit Suisse that approximately 20 percent of the firms fixed income group received pink slips, it was revealed that the firm would indeed have to cut about 500 investment banking positions. A spokesman for the firm cited market conditions and projected staffing levels required to meet client needs as causes for the cuts. Despite the current market conditions, Credit Suisse has had relatively low RIFs since fall 2007. In a recent Bloomberg article, Credit Suisse was recognized for initiating a rare recruitment program to help place RIFed staff in other jobs within and outside the company. A former employee who found a job as a result of this effort, stated that in a tough market its important to get that type of recommendation.
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Chinese connection
Credit Suisse partnering with another powerful nation in June 2008, when regulatory agencies approved a joint venture it had proposed with the Chinese brokerage firm Founder Securities. The Swiss bank announced that it was seeking to partner with Founder Securities in January in order to get a foothold on securities underwriting and wealth management, among other things, in China. The announcement followed on the heels of chief rival UBSs acquisition of Beijing Securities that formed UBS Securities.
Extreme conditions
Credit Suisse reported a net loss of $2.1 billion for the first quarter of 2008, a 23 percent decrease from the previous years first quarter. Net revenue also looked grim, coming in at $2.9 billion, a 72 percent decline. Despite the fact that it wrote down $5.3 billion in bad investments, the gloomy numbers still surprised some analysts, many of whom had placed their predictions about three times higher. The firms investment banking business had a particularly tough quarter, reporting a pre-tax loss of $3.4 billion. Prior to these results, the firm seemed to have largely avoided the subprime crisis plaguing its competitors, but this quarter brought in extreme conditions, said Credit Suisse CEO Brady Dougan.
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GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Credit Suisses Investment Banking Business
competitive environment than you find at other firms. Insiders say Credit Suisse is a great place to start a career, because there are a lot of opportunities for junior people. The firms friendly and open attitude provides the chance to get what you want and be as big or small as you want. Its a meritocracy that offers continuous intellectual development. A contact says, Unlike the stiff culture at Goldman Sachs or Lehman Brothers, Credit Suisse has a very relaxed and jovial atmosphere. Unfortunately, some say outsiders have been slow to recognize the growing strength of the firm and still dont count it in the league of Morgan Stanley or Goldman. Insiders dont let them bring them down, however. Employees express a high level of satisfaction with Credit Suisse, and appreciate its entrepreneurial spirit yet global orientation towards deals. And its nice working someplace where there is a very low jerk factor. Some say the firm can sometimes feel a bit top heavy, while others complain of rigid promotion stipulations. But generally speaking, people are happy to be working for the firm and take a lot of pride in the Credit Suisse name. One source sums it up, People are happy and proud to work at the bank, and strive to make it the most prestigious investment bank around.
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firms training the best on the Street. Others note that theyd like more experience across different products, but the more popular opinion is that the firm has extensive training overall.
Historic location
The firms New York City headquarters is in a great location and very conveniently situated. The office overlooks Madison Square Park and is in an excellent location with lots of restaurants, clubs and shopping. Plus, the building is a landmark and the lobby is immaculate. A contact says Credit Suisses New York office is in the best building of all the banks. The interior conditions are nice but not overly luxurious. But NYC bankers complain of bad chairs and spotty IT. In the Los Angeles office, bankers have plenty of space, a nice view of the city and a convenient location. In Chicago, the office has more space than in New York and its also more upscale. The firms policy on dress code is business casual, but collared shirts and dress pants are required. Ties and jackets not required unless there is a client meeting. Casual attire is allowed on Fridays in summertime, but even then, a collared T-shirt, shirt or sweater is appreciated. In the Los Angeles office, people tend to be relaxed about dress. One source, whos worked at other large investment banks, says of the firms dress code, You are allowed to be an individual here much more than at other top-tier banks.
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VAULT TOP 50
9
PRESTIGE RANKING
Deutsche Bank
KEY COMPETITORS
Citi Credit Suisse Goldman Sachs J.P. Morgan Lehman Brothers Merrill Lynch Morgan Stanley UBS Investment Bank
BUSINESSES
Corporate & Investment Bank (CIB) Private Clients & Asset Management (PCAM)
THE STATS
Employer Type: Public Company Ticker Symbol: DB (NYSE) Chairman, Management Board: Josef Ackermann Revenue: $30.7 billion (FYE 12/07) Net Income: $6.5 billion No. of Employees: 78,275 No. of Offices: 1,868
UPPER
When it comes to hours, DB is among the more reasonable banks
DOWNER
High-pressure environment
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EMPLOYMENT CONTACT
www.db.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong and prestigious, theyve made good strides in the US Long hours Young; up-and-coming in the US Average; just another investment bank
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Vault Guide to the Top 50 Banking Employers 2009 Edition Deutsche Bank
THE SCOOP
Moving up in M&A
Deutsche Bank is made up of two divisions: corporate and investment bank (CIB) and private clients and asset management (PCAM). The whole group is directed by a management board, which controls resource allocation, accounting and disclosure, strategy and risk management. Deutsche Banks corporate and investment bank group oversees the firms capital markets business, including the origination, sales and trading of capital markets products, in tandem with the banks corporate advisory, corporate lending and transaction banking businesses. It also oversees mergers and acquisitions and gives general corporate finance advice primarily for global corporations, financial institutions, and sovereign and multinational organizations. In 2007, the firm had a good year in merger acquisition advisory. According to Thomson Financial (now Thomson Reuters), it ranked No. 7 in global announced M&A deal volume, moving up two spots from 2006 while working on 289 deals worth $868.6 billion. It also moved up two spots in U.S. announced M&A, coming in at No. 8 while advising on 76 deals worth $250.3 billion. Deutsche was especially hot in the summer 2007, climbing to the top spot on the announced M&A league tables in the month of July. Deutsche worked on 29 deals valued at $162 billion in July 2007 alone, beating out Goldman Sachs by almost $40 billion in deal value. Two of the deals that helped Deutsche over the top were Rio Tintos $48 billion acquisition of Alcan and Blackstones $20 billion buyout of Hilton Hotels. Deutsche also jumped two places in European announced M&A in 2007, ranking No. 6 while advising on 194 deals worth $566.4 billion. On the debt and equity markets tables, where Deutsche usually ranks in the top 10, the firm held on to its No. 3 ranking in global debt, equity and equity-related underwriting, according to Thomson. However, it slipped one spot to No. 3 in global debt, fell two spots to No. 4 in global asset-backed securities and dropped three spots to No. 7 in global mortgage-backed securities. In U.S. investment grade debt, though, the firm rose two spots to No. 9, working on 150 deals worth $62 billion. Additionally, the firm held strong to its No. 8 rankings in the three most important global equity tables: equity and equity-related offerings, common stock and IPOs. It also had a decent year on the U.S. equity tables, moving up one spot to No. 8 in equity and equityrelated deals, holding onto its No. 9 ranking in common stock and leaping three spots to No. 9 in IPOs.
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A complex history
In 1870, a private banker named Adelbert Delbruck and a politician named Ludwig Bamberger opened Deutsche Bank in Berlin as a specialist bank for foreign trade. By 1876, it had become the largest bank in Germany and, by 1880, investments were
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Vault Guide to the Top 50 Banking Employers 2009 Edition Deutsche Bank
scattered across the globe, including in North and South America, Eastern Asia and Turkey. Before the turn of the century, the German giant had invested in projects like the Northern Pacific Railroad in the U.S. and the Baghdad Railway. After World War II, Deutsche Bank closed its offices in Soviet-occupied areas and was scattered into 10 regional offices while western Germany was under occupation. By 1957, the bank had regained its footing as a unified Deutsche Bank AG with headquarters in Frankfurt am Main. By 1986, the firm made its first major bank acquisition outside of Germany with the purchase of Banca dAmerica e dItalia. Other acquisitions included the Morgan Grenfell Group (1989), the U.S. Bankers Trust (1999), the U.S. asset manager Scudder Investments (2002), the Swiss private bank Rued Blass & Cie (2003) and the Russian investment bank United Financial Group (2006). Meanwhile in 2001, shares of the bank were also traded for the first time on the New York Stock Exchange.
No European immunity
Though Deutsche Bank does hold the advantage of being located across the ocean from the debt debacle, it wasnt able to completely avoid the fallout from the U.S. subprime and credit crisis. In fall 2007, it reported a write-down of 1.5 billion ($2.1 billion) on structured credit products and securities backed by residential mortgages. Though no one likes to take a $2 billion hit, relative to the potential losses that it could have incurred, the losses looked almost rosyespecially when coupled with third quarter net profit, which exceeded 1.4 billion ($2 billion), a number that was more or less on point with its profit targets for the year. Chief Executive Officer Josef Ackerman said at a banking conference in London in October 2007 that the reason for the relatively stable numbers was the success of the asset management and private and corporate client divisions, which offset the losses relating to volatility in the credit market.
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Deutsche announced its full-year earnings on Ackermans 60th birthday, and his gift was the absence of any disastrous results. The banks numbers were expected to drastically decline for the year as a consequence of its losses in the subprime market, but the results that came in were rosier than many had predicted. The banks only losses due to the credit crisis in the fourth quarter of 2007 were a meager 50 million write-down to compensate for LBO loans. The company posted a 7 percent increase in net income for the full year, with total net income for the year rounding out at 6.5 billion. Net revenue was also modestly higher for the year, by a margin of 8 percent at 30.7 billion. The change was driven by strong advisory revenue of 314 million and increases in global transaction banking of 12 percent for the year. Again, the investment banking unit trailed behind the rest of the company, posting a 43 percent decline (514 million) in pre-tax profits in the final quarter. The first quarter of 2008 wasnt as rosy, as Deutsche reported its first quarterly loss in five years. The firm took 2.7 billion ($4.2 billion) in leveraged buyouts and asset-backed securities write-downs during the quarter, and posted a net loss of 131 million, versus the 2.12 billion profit it booked in the first quarter of 2007. The good news was the firm was not hit nearly as hard as some if its rivals. During the first quarter of 2008, Deutsche eliminated less than 1,000 investment banking jobs, compared to the several thousands of cuts that competitors such as Citi and Merrill Lynch were forced to make.
Pay up
In February 2007, Deutsche reached a settlement with hundreds of wealthy investors, ending a yearlong civil battle over charges that the bank created aggressive tax shelters based on fake loans. The shelter, known as BLIPS (bond-linked issue premium structure) was the basis for a criminal case against Deutsche and accounting firm KPMG. According to the The New York Times, Deutsches settlement could potentially be higher than tens of millions of dollars. That still leaves the pending criminal charges brought against Deutsche by federal prosecutors in Manhattan and the U.S. Justice Department. If a settlement is reached on those charges, Times sources said Deutsche will face a criminal penalty of up to $1 billion, as well as a mandatory admission of criminal wrongdoing.
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Qatar oasis
In November 2007, Deutsche Bank officially set up shop in the Qatar Financial Center, offering investment banking and private wealth management services to the wealthy Middle Eastern country. The plan to expand into Qatar had been in the works since January 2007 when authorities there granted Deutsche Bank license to operate in their nation. Deutsche is no stranger to the Middle East, as it also has offices in the Dubai International Financial Center as well as branches in Saudi Arabia. The company hopes to become even more active in the Middle East and North Africa by growing its securities offices in Cairo, Bahrain, Abu Dhabi and Algeria. The office in Qatar will be headed by Mounir Husseini, who will serve as chief country officer and general manager in Doha. Qatars economy is fed on its resources: it has one of the worlds largest gas reserves.
Carbon credits
Deutsche Bank cleared the way for streamlined carbon trades in early 2008 when it announced that it was initiating a custody, clearing and settlement service for carbon credits. The service, which will be based on the infrastructure of the Depositary and Clearing Centre in London (which provides services for London Money Market instruments), will cover carbon credit instruments issued under both the EU Emissions Trading Scheme and the Clean Development Mechanism set up during the Kyoto Protocol. It will manage the often complex world of carbon trading by removing the operational responsibility for the settlement process from traders, and creating a platform for different currencies and markets.
Bargain basement
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Deutsche Bank revealed in July 2008 that it will buy several ABN Amro commercial-lending units from Fortis Bank for $1.13 billion. Specifically, Deutsche will purchase two corporate client groups and 13 commercial banking offices in addition to segments of Hollandsche Bank Unie and IFN Finance BV. The acquisition seems to be welltimed for Fortis, which has suffered the loss of approximately 50 percent of its market value since buying ABN Amros asset management and banking groups in 2007 and selling off the units at a deep discount. According to Deutsche, the deal will significantly strengthen its corporate banking operations in the Netherlands. Deutsche also recently said it will report a profitable second quarter when it announces its results on July 31st.
GETTING HIRED
Steel yourself
When it comes to the company culture, well, if youre not hard-nosed now, you soon will be. Its a high-pressure environment and its very hectic, with everyone being responsible for everything. Even though the firm works hard towards
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creating a fun, relaxed work environment, sometimes, according to workers, theres not enough of a payoff. DB bonuses are usually below the rest of the Street, reveals one insider. They pay just enough so you wont leave immediately, but not enough to keep you there long termand thats why the attrition rates are so much higher than the rest of the big names. But despite the compensation issues, working at Deutsche is very rewarding and management definitely appreciates your efforts and contributions, and works hard toward creating a fun, relaxed work environment. And when it comes to time spent in the office, hours at all banks are awful and DB is among the more reasonable, with only a few all-nighters.
Relaxing a little
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While Deutsche is home to some of the smartest, but most demanding senior managers on Wall Street, sources report a slight recent loosening of the banks tie. Dress is business casual at the moment, one contact says, a shift from the formal-only policy of the past. The code is business casual, although we are in formal business attire for client meetings, concurs an analyst. Deutsche is a pretty diverse place, both in terms of race and gender, insiders say. The bank maintains a host of diversity networks, including Women on Wall Street, Rainbow Group/LGBT Networks, Deutsche Banks Diversified Network and Multicultural Partnership Network. In addition, it works with the National Black MBA Conference, Reaching Out MBA Conference, Inroads and the Sponsors for Educational Opportunity (SEO) Program. Sources also believe the banks willingness to implement flexible work schedules helps women and parents juggle their lives; Deutsche also offers programs that allow employees lengthy unpaid leaves of absence to care for children or relatives. All in all, Deutsches people say theyre satisfied. Employees seem genuinely happy to be here, but not in a cultish, drink-the-punch sort of way, as at some other banks, opines one insider.
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VAULT TOP 50
10
PRESTIGE RANKING
299 Park Avenue New York, NY 10171 Phone: (212) 821-3000 www.ibb.ubs.com
BUSINESSES
Equities Fixed Income, Rates & Currencies Investment Banking
THE STATS
Employer Type: Business Unit of UBS AG Chairman, UBS AG: Peter Kurer CEO, UBS AG: Marcel Rohner Chairman & CEO: Jerker Johansson No. of Employees: 21,932 No. of Offices: 60
KEY COMPETITORS
Credit Suisse Goldman Sachs Lehman Brothers Merrill Lynch Morgan Stanley
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UPPERS
Great managers Global and cross-border opportunities Personal development, intellectual stimulation
DOWNERS
Stamford location a drawback for urbanites Recent negative news Lower-than-industry pay
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
www.ubs.com/graduates
Theyve done a good job getting into the US market Sinking ship Highly-regarded Lost most of its talent
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Vault Guide to the Top 50 Banking Employers 2009 Edition UBS Investment Bank
THE SCOOP
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Heart palpitations
On February 14, 2008, UBS had an anti-valentine for its shareholders: the bank confirmed its preannounced losses for the fourth quarter and full year 2007, and they were as bad as expected. UBS Investment Bank recorded a fourth quarter loss of CHF 15.4 billion, compared with a profit of CHF 1.3 billion in the final quarter of 2006. The banks fixed income, currencies and commodities division led the units downfall, reporting a loss of CHF 15.5 billion. As the bank had previously announced, these losses were due to securities linked to U.S. subprime mortgage markets. Groupwide, the numbers werent much prettier. UBS AG took a fourth quarter loss of 12.5 billion CHF ($11.3 billion) and a full-year loss of 4.4 billion CHF ($4 billion). This was the largest fourth quarter loss reported by any bankeven Merrill Lynch and Citigroup, which saw profits plummet as a result of subprime exposure, were able to keep their quarterly losses under $10 billion. It was the first annual net loss in the banks history. In its earnings announcement, UBS shed more light on its financial situation. In December, it had lowered its subprime exposure from $29 billion to $27.6 billion, but in February, officials admitted UBS still held $26.6 billion of exposure to Alt A mortgages. While Alt A mortgages didnt grab headlines the way subprimes did, they are still high-risk and potentially costly. UBS also delved into the details of its $14 billion-plus write-downs for 2007as it turned out, only $10.8 billion was linked to subprime investments. At least $2 billion was attributed to Alt A mortgages, and just under $1 million involved credit protection for investing in collateralized debt obligations (CDOs).
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Vault Guide to the Top 50 Banking Employers 2009 Edition UBS Investment Bank
Big setbacks
In May 2008, UBS announced two big blows: a first quarter loss of $10.9 billion and another 5,500 job cuts. UBS said the most current wave of layoffs, which came on the heels of 1,500 cuts it announced in 2007, will involve all levels within the company, and mostly affect its U.S. and U.K. business units. UBS also noted it will be shuttering the U.S. arm of its municipal bond business and selling $15 billion in distressed mortgage assets to investment management company BlackRock. However, UBS CEO Marcel Rohner said the firm will also continue to rebuild its investment banking business and even add staff to some of its units throughout 2008.
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No buyer in sight
In June 2008, UBS announced that it would be shuttering its municipal debt business, resulting in the termination of about 280 employees. The firm had tried to sell the unitthe third-biggest municipal bond business in the U.S.but said the complexities of selling [it] in the current market and limited market capacity for a business of this size made a deal unlikely.
Mr. Fix-It
In July 2008, UBSs new chairman Peter Kurer began to make some big changes to pacify investors, whove been extremely frustrated with the way UBS has performed in the wake of the credit crisis (its stock is down 65 percent since announcing its first major write-downs in fall 2007). Kurer, who took the top post in April 2008, said board members Stephan Haeringer, Rolf Meyer, Peter Spuhler and Lawrence Weinbach will be replaced with new directors who do not currently work for the firm. He also abolished the chairmans office, a part of the firms board management. Kurer told The Wall Street Journal that the changes should set an example for the rest of the company that we should keep things simple, reduce complexity [and] reduce bureaucracy.
GETTING HIRED
No easy in
Because UBS is incredibly focused on fit, sources say theres a very extensive interview process and a low hire rate. UBS hires based on how they feel the person will fit into the culture, an insider explains. Its very difficult to predict someones candidacy accurately. The firm was highly selective in 2007, a source in California reveals.
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The quite selective process begins with recruiting top students at top universitiesthink the top 10 MBA schools, the Ivy League, Carnegie Mellon, MIT, University of Chicago as well as a limited number of other institutions across the country. A current analyst whose school wasnt on the UBS target list says, Coming from a nontarget school made the process even harder. The firm looks for men and women who not only have the education and intelligence to be a valuable addition to the firm, but also the work ethic to back it up. Connections are key to getting a foot in the door, and non-target school candidates should make every effort to get those resumes into the hands of a recruiter. The resume drop may be followed by a phone interview screen, after which candidates may be invited up to the firm for a super day.
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Euro-style
As befits its Swiss roots, UBS has an intellectual, slightly European feel, in that most people are laid-back, especially compared to other banks of its size. There are also lots of opportunities to transfer divisions, as well as to work at one of our
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countless international offices, insiders say. Theres encouragement from managing directors to travel to one of these countries before getting settled down. While the people are friendly, the work is intense, a source in New York says. UBS has an entrepreneurial culture and a drive to climb the rankings, agrees an associate. But others say a good work/life balance can be had, though one woman warns that each desk has its own culture. The rotations are important to see where you fit in with the different personalities. Some desks can be like night and day. Firmwide, however, sources find interaction with group heads and MDs, cross-product exposure, camaraderie and positive attitudes. I found that people had a diverse set of experiences, not just plain banking, an associate adds. Raves another, Im a huge fan of the culture at UBS, especially for young people starting out in their career. Ive found nearly everyone here to be extremely smart and driven to succeed, but also very approachable and unpretentious.
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Emphasizing diversity
UBS is extremely supportive of diversity initiatives, and insiders say there are several different company organizations aimed at minority groups within the firm. The co-head of my group is one of the highest-ranking women on Wall Street, an associate director brags. Theres a good percentage of women in my group and other groups, from what Ive seen. Insiders believe UBS is a true meritocracy, which means lots of opportunity for people of all backgrounds. An AsianAmerican employee calls UBS one of the most diversity-supporting banks on the Street, and recent hire notes that my class is very diverseracially, culturally, religiously, gender-wise and politically.
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Close contact
Employees enjoy great managerial relationships and daily interaction with superiors who are very focused on younger people and on growing the business. Managers respect the ability and value subordinates add to the group and greater firm, says a source. My manager sits directly across from me, an analyst adds. That means opportunities to sit in on meetings with her and ask her questions throughout the day. UBS training involves a rigorous 12 weeks in class, followed by weekly sessions with senior employees during the first year. An analyst says theres much attention on trainingbasic finance, accounting, bond math, economics, derivatives, etc. The firm brings in cross-product speakers to increase knowledge of both equities and fixed income products, and employees at all stages of their careers can take advantage of loads of e-learning and training facilities.
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11
PRESTIGE RANKING
BUSINESSES
Alternative Investments Corporate Banking Global Capital Markets Investment Banking Markets & Banking Transaction Services
THE STATS
Employer Type: Division of Citi CEO, Citi: Vikram S. Pandit CEO, Institutional Clients Group: John Havens Revenue: $10.5 billion* (FYE 12/07) Net Income: -$5.2 billion* No. of Employees: 310,000** No. of Offices: 7,500**
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KEY COMPETITORS
Goldman Sachs Lehman Brothers Merrill Lynch
UPPERS
Breadth of the company Incredibly smart people Great deal flow
DOWNERS
Inefficiencies across the bank because its so large Facilities really arent top notch Too much work, too little time
EMPLOYMENT CONTACT
www.careers.citigroup.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Very prestigious, strong player Poor management destroyed this firm Great deal flow and brand name recognition Massive layoffs spell problems
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THE SCOOP
A changing Citi
Citi previously divided its businesses into four lines: markets and banking, global consumer group, global wealth management and alternative investments. In October 2007, Citi made some significant changes to its structure, merging markets and banking with alternative investments to create one group called institutional clients. The realignment came on the heels of a 60 percent drop in net income for the third quarter of 2007. As many expected, Citis capital markets businesses suffered from slowdowns in the credit markets and losses linked to mortgage-backed securities. At the same time, Citi announced that Thomas Maheras, chairman and co-CEO of the old markets and banking group, would leave the firm. James Forese took his place as co-head of investment banking operations, alongside former markets and banking co-CEO Michael Klein. Meanwhile, Vikram Pandit, a former Morgan Stanley executive who joined Citi earlier in 2007 when the banking giant acquired his private equity and hedge fund management firm Old Lane Partners, was appointed chairman and CEO of the institutional client group. Two months later, Pandit moved up the organizational chart even further, becoming Citis CEO. Not long after, John Havens was named CEO of the institutional clients group and chairman of alternative investments. In December 2007, Pandit succeeded Charles E. Chuck Prince III as chief executive. Prince had resigned in November amidst concerns over the banks downfall in the third quarter. After revealing that Citi was taking a $5.9 billion write-down, Prince told a small circle of bank executives that he took responsibility for the losses and felt it would be better for Citi if he stepped down. Pandit was named Princes replacement after a brief search by the banks board. Before founding Old Lane, Pandit had served as president and chief operating officer of Morgan Stanleys institutional securities group (which included Morgan Stanleys investment banking, fixed income and capital markets businesses). Pandit had been previously considered a possible heir to John Macks throne at Morgan Stanley.
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Global reach
With operations in more than 100 countries, Citis widespread businesses include consumer banking and credit, corporate and investment banking, securities brokerage and wealth management. Its clients include consumers, corporations, governments and institutions; brands included under Citi include Citibank, CitiFinancial, Smith Barney and Banamex. The newly formed international clients group includes markets and bankingwhich advises institutional investors, governments and corporate clientand the alternative investments division, which manages capital on behalf of Citi itself, as well as highnet-worth individuals and institutional investors. Citi Alternative Investments works across five asset classes, including private equity, real estate, hedge funds, fixed income and infrastructure. The markets and banking division is further broken down into investment and corporate banking, which offers strategic and financial advisory services and securities underwriting and distribution; global capital markets, which includes equity and debt sales and trading, research, underwriting and structuring in all asset classes; and transaction services, which provides cash management, trade finance, treasury, custody, clearing, depository receipt, agency trust services and fund services.
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U.S. banking history: its roots lie in the City Bank of New York, a commercial bank founded in 1812 by Samuel Osgood, the first commissioner of the United States Treasury.
Citi still saw a 17 percent increase in operating expenses for 2007. The bank attributed this figure to administrative costs linked to business development projects, but it also reflected a $370 million pre-tax charge related to layoffs.
Speculation continues
Citi laid off about 17,000 people in April 2007 in anticipation of losses in the second half of the year. And, in fact, its $9.83 billion fourth quarter loss was the biggest in Citis history. Shortly before that earnings report was made public, several media outlets reported that Citi was planning another large round of layoffs in an attempt to cut costs. And in January 2008, Citi did indeed announce that it was cutting an additional 4,200 jobs, and that its ultimate total number of layoffs could be close to 20,000 to 24,000. Two months later, the firm released plans to lay off an additional 2,000 workers. In a statement, Citi spokesman Dan Noonan said, Each year we identify the bottom 5 percent of performers in the institutional clients group, and some number of these people leave the firm. The reductions occurred worldwide, though most took place at the firms New York and London offices.
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Closing time
In June 2008, Citigroup said it would be shuttering its struggling hedge fund Old Lane Partners, which had not yet reached its first birthday. As noted earlier, the fund, purchased by Citi for $800 million in July 2007, was co-founded by Citi CEO Vikram Pandit, who was estimated to receive $165 million from Old Lanes sale. Old Lane had suffered due to lower than anticipated returns and its top employees, such as Pandit, leaving the fund for bigger positions.
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GETTING HIRED
Q&A
For one woman, the road to a Citi job began with a number of firm-specific recruiting and networking events on campus. Next, I applied online through the firms web site in December and was invited to interview in early January. My first-round interview was with one vice president and one director. My second round interview was on site and consisted of three one-on-one interviewseach with one director and two managing directors. Others report having gone through five different interviews,
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each 30 minutes long during the second round. In general, sources say that the first round focuses on background and previous experience while the second round can delve into more technical issues. Each of the second-round interviews focused on something different, says a source. One was technical, and one was ethical. Another says some typical behavioral questions include Why do you want to work in [this division]? Why this firm? What qualities do you think make a good [employee in this division]? Another recalls queries like Tell me about a time when you were innovative and Why did you pick your school? Besides talking about leadership and analytical topics, the second round might also include technical questions like What is the market forecast for a given year? If you had $1 million, what would you invest in? And pick any stock and pitch it to me. In both rounds, sources say interviewers want to see enthusiasm.
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Insiders say one perk is being given as much responsibility as you can handle, and most managerseven senior managementfollow an open-door policy. Very professional is how one contact describes superiors. There is a lot of focus on training and learning, he says, and subordinates can rely on their superiors to help them when needed. A woman agrees, saying her managers have found the right balance between wanting to stay in the loop, but also giving me room to do my own thing. While some insiders quibble that their initial training is too long, others laud it as some of the best in the industry. My friends at other firms call Citi analysts sometimes with questions, brags an analyst. As for informal training, it also depends on the group you are init could be great or nonexistent.
Tough hours
Sources say there are not as many perks as other firms, and give mediocre marks to compensation. Like so many in the banking industry, Citi employees are uncertain about their bonuses, given market conditions. However, Citi does offer discounted gym memberships, late night car service and meal allowance, discounts on local attractions, stock options, a 401(k) plan and investment opportunities. The work and hours can be grueling, insiders say. Its investment banking, so youre going to work a ton, an analyst explains. Even though the market is slower right now, youll still be working long hours. Many respondents say they put in weekend time, too. My default assumption is I will be working on the weekend, a contact admits. If I happen to not have work, that comes as a bonus. Most agree that its pretty bad as a first-year analyst, but the hours can improve dramatically later on. Plus, most employees have remote access, so while you may be working longer hours on certain days, you are frequently able to do so from home.
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Keeping it basic
Citis offices are nothing overly lavish, a New York source says. Theyre about what youd expect from an investment bank. Its wall-to-wall cubes, adds another. No use of color or art. The biggest complaint is that its HQ is a little bit old. However, at least its a good location if you dont want to be in the hustle and bustle of Midtown or Downtown. We are expected to dress formally, a source says, commenting on dress code. This is not the case in other parts of the firm. Business casual with a slight emphasis on more formal works in most divisions, though some still wear suits every day (and always when meeting clients). Insiders also note that Citi doesnt have casual Friday or casual summer policies.
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12
PRESTIGE RANKING
270 Park Avenue New York, NY 10017 Phone: (212) 270-6000 Fax: (212) 270-2613 www.jpmorganchase.com
BUSINESSES
Chase Business Credit Chase Capital Chase Capital Placements Chase Equipment Leasing Commercial Real Estate Community Development Banking Mid-Corporate Banking Middle Market Banking
UPPERS
Relaxed environment Nice perks
DOWNERS
Can be bureaucratic Advancement needs to be more structured
THE STATS
Employer Type: Division of JPMorgan Chase Chairman & CEO, JPMorgan Chase: Jamie Dimon CEO, Chase Commercial Bank: Todd Maclin Revenue: $71.3 billion* (FYE 12/07) Net Income: $15.4 billion* No. of Employees: 4,000** No. of Offices: 2,300* *JPMorgan Chase **Chase Commercial Bank
EMPLOYMENT CONTACT
jpmorganchase.com/careers
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Top choice if you want to be a commercial banker Average Well runquality management One of the most prestigious, but behind Citi in this area
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Permission to buy
When legendary financial institution Bear Stearns crumpled under the pressure of the credit crisis, JPMorgan Chase was standing by to pick up the piecesliterally. In May 2008, JPMorgan Chase announced that it had completed its acquisition of Bear Stearns; under the terms of the deal, each share of Bear would be converted into 0.21753 shares of JPMC common stock. Bears fall sent shockwaves through the banking industry, and U.S. regulatory agencies went to extraordinary lengths to smooth the acquisition effort and subsequent transitions. In July 2008, the Federal Reserve allowed JPMorgan Chase to purchase a $44 billion portfolio of derivative transactions and hedgesincluding Bear Stearns Forex and Bear Stearns Credit Productsfrom the remains of Bear Stearns, which it already owned. Under normal circumstances, a buy that big would be prohibited by rules governing asset sales between banks and their affiliate companies. The Fed also exempted JPMorgan Chase from regulations governing its transactions with Maiden Lane, a limited liability company constructed with the New York Fed to hold some of Bear Stearns assets.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Chase Commercial Bank
Chasing history
A look at JPMorgan Chases predecessor institutions reads like a whos who of American banking history: todays financial services giant grew from roots in J.P. Morgan & Company, Chase Manhattan, Manufacturers Hanover, Chemical Bank, Bank One, the National Bank of Detroit and First Chicago. Its earliest predecessorthe Chemical Bank of New Yorkwas formed in 1824, but the JPMorgan Chase of today began its evolution in 1991 with the merger of Chemical Banking Corporation and Manufacturers Hanover. The tie-up created Chemical Bank, then the second-largest bank in the U.S. Another big merger took place in 1995, when National Bank of Detroit and First Chicago combined, giving birth to a mega-regional bank called First Chicago NBD. Both Chemical and First Chicago underwent even bigger transformations a few years later: Chemical merged with Chase Manhattan to create the countrys largest bank holding company in 1996, and in 1998, First Chicago joined Banc One Corporation to form the Bank One Corporation. The Morgan and Chase names became linked in 2000, when J.P. Morgan & Company formed J.P. Morgan Chase in a merger with Chase Manhattan. The last piece of the puzzle was completed in 2004, when Bank One and J.P. Morgan Chase finalized their merger. When the deal wrapped, J.P. Morgan CEO William B. Harrison passed the torch to current CEO Dimon, who had been the CEO of Bank One. Dimon was named president in 2004, taking on the roles of chairman and CEO at the beginning of 2006.
Whos next?
According to a CNBC report in July 2008, soon after JPMorgan Chase completed its purchase of Bear Stearns, it set its sights on a new acquisition target: Wachovia Corporation. According to the reportbased on information from JPMorgan Chase insidersWachovia had become an attractive option for JPMorgan Chase, in part because the Charlotte, N.C.-based bank had been struggling to survive. Like Bear Stearns, Wachovia is a well-known name that fell on tough times in the first half of 2008, the result of its staggering exposure to bad mortgages. By June 2008, Wachovias CEO, Ken Thompson, was dismissed from his post, leading to speculation about a takeover. Although analysts were quick to point fingers at JPMorgan Chase as a potential buyer, thered be some challenges to overcome: most important, U.S. laws forbid any bank from controlling more than 10 percent of the nations deposits. JPMorgan Chase controls 7 percent of U.S. deposits, and Wachovia holds 6 percent, which would put a combined entity over the federal cap.
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source, from working in teams to ideas on how to improve the bank from an outsiders perspective. Occasionally theres also one written test and one group activity observed by the managers.
Fit in
Expect at least three rounds of interviews that will help determine candidates who have the best fit. So always remember to be prepared to discuss what the firm does and how your department contributes to the firms bottom linethe answer is not always a financial one. Questions might target your skill and ability to deal with the scope and complexity of the diverse enterprises that make up the firm. Interviewers want to partly know if youre good at your jobbut more importantly, they want to know if you can function in the environment. But interviews arent necessarily hard or nerve-wracking and seem based largely on fit. I was asked about my motivations, knowledge of the banking industry, and why I chose to attend the university I did, reports one insider. You may also be asked is money or enjoyment more your objective in this position?
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Diversity is mandatory
Insiders call the diversity at the firm amazing. Diversity efforts put forth by Chase include mandatory group sessions that used large physical maps that included details like what the diversity mix will be in 2050, says one insider. Another contact adds that people from all races and socioeconomic levels work hand in hand at the firm.
The future
The outlook for the firm is strong, maybe because the firm is highly regarded. Chase is seen as the only bank lately that can add value to shareholders, says one insider. Indeed, its the only publicly owned bank that can utilize its size and strength to lend credibility in shaky times. Its also very well positioned relative to other banks suffering from credit write-downs and liquidity issues.
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13
PRESTIGE RANKING
300 Park Avenue New York, NY 10022 Phone: (212) 389-1500 www.greenhill.com
DEPARTMENTS
Merchant Banking Mergers & Acquisitions Restructuring
UPPERS
Hours are less than at bulge bracket firms Close-knit and team-oriented culture
THE STATS
Employer Type: Public Company Ticker Symbol: GHL (NYSE) Co-CEOs: Scott Bok & Simon Borrows Revenue: $400.4 million (FYE 12/07) Income: $115.3 million No. of Employees: 214 No. of Offices: 5
DOWNERS
Not as much formal training as at bigger firms Earnings potential is low unless youre a partner or managing director
EMPLOYMENT CONTACT
See careers section of www.greenhill.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Very prestigious M&A boutique Works on much smaller deals Niche investment bank where you can learn a lot and receive a significant amount of responsibility Stronger in Europe than US
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THE SCOOP
Open book
In 1996, Robert F. Greenhill, former head of Smith Barney and former president of Morgan Stanley, struck out on his own and founded an eponymous boutique firm. The founder sat atop his profitable hill for 11 years, before stepping down from his CEO post in October 2007. Handing the reins to new co-CEOs Scott Bok and Simon Borrows, Greenhill said he would remain chairman of the firm. Greenhill calls itself a unique investment firm, and to be sure, it follows a model thats quite unlike the structure of its behemoth competitors. At Greenhill, independence is the guiding philosophybecause it is not part of a larger financial institution, the firm can avoid getting snarled in conflicts of interest (nor do its managing directors answer to anyone but themselves). Greenhills second rule is focus. It has no research, trading or lending divisions to distract from its advisory work. Thanks to the firms tiny size, it can also afford more transparency than most on Wall Street. In January 2007, Greenhill President Scott Bok told the press that theres no heated whispering about year-end bonuses at Greenhill. Instead, the firm writes a detailed memo that explains each managing directors bonus, and every MD receives a copy of the memo. Its a strange policy, Bok admitted. But it works. Greenhill went public in 2004 but remains closely held by its managing directors. Many of these MDs are former Morgan Stanley bankers who knew Greenhill during his 30-year tenure there. The firm is headquartered in New York, with additional offices in Dallas, Toronto, London, Frankfurt and San Francisco.
Cross-border expansion
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Greenhills first acquisition came in June 2006 when it bought Beaufort Partners, a Canadian independent advisory boutique launched in 2005 by former bankers at Morgan Stanley and Goldman Sachs. Initially, Greenhill and Beaufort discussed embarking on some kind of joint venture, but decided an acquisition would do just as well. Beauforts five partners had close ties to several Greenhill partnersmany of whom also began their careers at Morgan Stanley or Goldman Sachs. After the deal, Beauforts Toronto office became a Greenhill outpost. October 2006 brought more international expansion when Greenhill hired Brian Phillips, a veteran of Legal & General Ventures, to head its newly created European merchant banking business. This business, based in London, is affiliated with Greenhills private equity arm in the U.S., called Greenhill Capital Partners (GCP). In 2005, GCP raised $875 million for its second fund; it focuses mainly on midsized investments in the energy, telecom and financial services sectors. In late 2006, Greenhill boosted its Nordic business, hiring Leiv Nergaard, chairman of Norwegian insurance company Storebrand, as a senior advisor for the region.
King of retail
In January 2007, Greenhill made a major hire. Richard M. Steinman, former head of global retail atyou guessed itMorgan Stanley was brought in as a managing director. During his 17 years at Morgan Stanley, Steinman worked on some of that firms biggest deals, advised May Department Stores on its $17 billion acquisition by Federated Department Stores, and Sears Roebuck on its $11 billion acquisition by Kmart. At Greenhill, Steinman works in New York as part of the firms retail sector advisory practice.
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Journal at the time the earnings were releases, Though those results reflect deal assignments secured in the good old days before the current credit crunch stopped the leveraged-buyout boom in its tracks, [Chairman Bob] Greenhill says the firm is positioned to benefit from an increase in corporate takeovers. Motley Fool had another theory about why Greenhill has such a successful third quarter, noting, Greenhills closed transaction list for the quarter is almost entirely made up of foreign deals, with a heavy concentration in Europe. This isnt a new development for Greenhillthe firm has always been strong around the world but its a point worth emphasizing as a questionable economy weighs on expectations for the M&A market in the U.S. The firm didnt disappoint in the fourth quarter, and finished the year well in the black. Net income grew by 51 percent versus 2006 to $115.3 million and total revenue rose 38 percent to $400.4 million. Advisory revenue, Greenhills bread and butter, grew by 75 percent during the year, helped by the firms work advising Fortis on its joint takeover of ABN AMRO, which was the biggest M&A deal of the year. The deal also helped Greenhills performance on Thomson Financials 2007 banking league tables. Greenhill jumped nine spots in U.S. announced M&A deal volume in 2007 to No. 16, advising on 14 deals worth a total of $45.1 billion. Greenhill made even bigger strides worldwide. In global announced M&A, the firm came in at No. 16, an impressive 10-place improvement from 2006.
Big-time deals
Indeed, Greenhills renowned advisory teams had a hand in some noteworthy transactions in 2007. The first weeks of 2007 wrapped The Blackstone Groups purchase of Greenhill client Cardinal Health, for $3.3 billion. In June, the Greenhill provided oversight of the process and an informal second opinion to the senior management of Slough Estates in its $2.9 billion sale to Health Care Property Investors. That same month, the firm advised Tesco on its $448 million acquisition of Dobbies Garden Centres. In July, Greenhill acted as the sole advisor to IHOP Corp. when it bought Applebees for $2.1 billion. In August, the firm advised Central Lewmar on its $185 million sale to International Papers xpedx distribution business. In November 2007, Greenhill wrapped things up on its advisory role to the Kogan Family, on the $203 million sale of Oakland Mall, a regional shopping mall in Michigan.
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Wild West
Greenhill announced plans in January 2008 to open its sixth office, and its first on the West Coast. The firm named Andrew Woeber, another ex-Morgan guy, as a managing director, charging him with opening a new office in San Francisco. Woeber has been an investment banker at Morgan Stanley since 2000. Prior to that, he worked in mergers and acquisitions at Merrill Lynch and was an attorney with Cravath, Swaine & Moore. In an article about Greenhill opening a San Fran outpost, The New York Times notes, With the opening of its San Francisco office, it will gain its first beachhead on the West Coast, possibly opening the door to more tech-related advisory work.
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GETTING HIRED
Sharp skills
Generally, the firm seeks out those with strong academic backgrounds and analytical abilities who have communication skills, leadership ability and teamwork orientation. Individuals interested in working for Greenhill can enter the firm as an analyst (full time or summer), associate or lateral hire. The full-time analyst program typically lasts two years, with strong performers offered the option to stay on for a third. And standout third-years may be offered an associate position. For analysts and associates, Greenhill offers a unique opportunity to work across the firms three groupsmergers and acquisitions, private equity investing and corporate restructuring. Interviews for the full-time analyst and associate positions typically take place during the fall, while candidates for summer positions usually meet with the company in February and March. Lateral hires can apply at any time and should send their cover letters and resumes to the appropriate offices e-mail address (for New York: nylateralhire@greenhill.com).
As a small investment banking boutique, Greenhill is somewhat selective in its recruiting. In general, the firm looks for the best employees possible, says one source. Another notes that the firm looks for candidates at Harvard, Yale, Wharton, the University of Virginia and UT Austin. Expect many, many interviews if your resume passes muster. Says one source, I met with nearly every professional in the office I interviewed foreveryone from Bob Greenhill [the chairman] and Scott Bok [CEO and president] down to the analysts. The contact does admit that given how much bigger firm is now than when I started, you probably dot meet with everyone anymore. Another contact agrees that you should expect to meet with a bunch of bankers before getting the nod. The firm will try to get as many employees as possible to conduct interview, adding, The final decision always rests with the partners and managing directors. Speaking of managing directors, one says he went through five rounds of interviews to land his spot.
So-so salaries
If youre not in the higher ranks of the firm, you may be in for some sticker shock when it comes to compensation, which receives average marks from insiders. One source says, Earnings potential is very low in this firm unless youre a partner or managing director, and limited stock options were allocated when the firm went public. The contact adds those options vest over a five-
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year period. As far as perks, the firm seems to provide all the basics, plus a little more. Explains one associate in New York, Theres a gym at the office thats stocked with workout clothesall you need to bring is sneakers. Additionally, he says, You get a $25 meal allowance and a free car service or taxi if you work late. And the company provides cereal for breakfast, free sodas and beverages, designer coffee and snacks. Another contact adds that theres equity participation for officers, and an associate points out that the modern New York office has a new floor and nice chairs and desks. As far as dress code, its banker blues and grays only, which means formal attire. Though, the firm does go casual on Fridays. One insider is happy to report that theres no face time. You only stay if youre busy. He adds, Hours fluctuate widely due to the small size of firmwhen youre working on something important, you work very hard, but when youre not, hours can be light. Another contact notes that hours are less than at bulge bracket firms. Most employees, from associate on up, report working between 60 and 70 hours per week, which usually includes one weekend office visit a month. Although theres not as much formal training [at Greenhill] as at bigger firms, its very adequate, says one young banker. In addition, he notes that theres lots of on-the-job training. Others, though, arent as pleased with the firms training practices, rating the firm well below average in this area. Diversity hiring practices also receive below-average marks. There are still not many women working here, says one source, but were very fair and ready to hire more.
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PRESTIGE RANKING
Barclays Capital
KEY COMPETITORS
Goldman Sachs Morgan Stanley UBS Investment Bank
5 The North Colonnade Canary Wharf London, E14 4BB United Kingdom Phone: +44-20-7623-2323 www.barcap.com
DEPARTMENTS
Commercial Paper Commodities Corporate Finance Advisory Ecommerce Equities Fixed Income Foreign Exchange Global Hedge Fund Services Indices Inflation Private Equity Research Securities Borrowing, Lending & Repo Syndications & Global Loans
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UPPERS
Managers are extremely nice and supportive Women share an equal standing and quite a few are in very important positions
DOWNERS
Culture can be hectic Household name abroad but lesser known in the US
EMPLOYMENT CONTACT
See careers section of www.barcap.com
THE STATS
Employer Type: Subsidiary of Barclays Bank PLC CEO: Robert (Bob) Diamond Jr. No. of Employees: 16,200 No. of Offices: 42
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Internationally known, respected Good in Europe; only a bond shop there Up and comer in the US So far, doing OK in credit crunch
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THE SCOOP
Fast riser
Barclays Capital is the investment banking arm of Barclays Bank PLC, a venerable London bank that dates back to 1690. The investment bank was created in 1997 to provide financing, risk management and advisory services to corporate, government and institutional clients around the world. It also offers foreign exchange management, capital raising, and equity and interest rate services. Although its younger than many of its peers, Barclays Capitals relationship with Barclays Bank PLC allowed it to grow at an astonishing rate: today it has offices in 29 countries and over 16,200 employees.
the Barclays Center, the stadium planned for the sprawling (and controversial) Atlantic Yards development in Brooklyn, N.Y. Diamond described the naming rights as a clear statement that we are serious about building our business in the U.S.
Return to Russia
In 1998, a year after Barclays Capital was created, the bank abandoned its operations in the former Soviet Union. A widespread Russian debt default that year cost Western banks millions; BarCap lost about $489.5 million. But in February 2007, Barclays revealed that it was planning a return to the country. The firm hopes to avoid the arduous process of obtaining Russian bank licenses by acquiring existing, small-scale banks in the country and conducting its operations through them. Although Barclays is starting with a retail branch network, the project will open the door to future investment banking work in the new Russian economy. In July 2005, Barclays Bank PLC purchased a 53.9 percent majority stake in Absa Group, South Africas largest consumer bank. The 2.6 billion deal represented the largest direct foreign investment in South Africa, and as a result, the Johannesburg-based Absa Capital (Absa Groups investment bank) was integrated with Barclays Capitals operations.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Barclays Capital
Table topping
On the 2007 Thompson Financial (now called Thomson Reuters) investment banking league tables, the firm was ranked No. 8 in global debt, serving as book runner on 960 deals worth a total of $352.8 billion. In U.S. debt, BarCap jumped a whopping seven slots to No. 3, just behind giants JPMorgan and UBS, book running on 216 deals worth $65 billion.
Winning environment
BarCap closed out 2007 with a slew of awards. Environmental Finance and Carbon Finance magazines named BarCap the best trading company in the EU Emissions Trading Scheme for the second consecutive year. Also in 2007, BarCap was named Most Innovative Trading Room at Waters magazines Third Annual American Financial Technology Awards, which honor achievements in financial IT. In addition, the firm won two House of the Year awards from IFR magazine: Covered Bond House and Commodity Derivatives House. Structured Products magazine gave BarCap two 2007 awards as well: Structured Products House of the Year-Asia and Structured Products House of the Year-Europe. Meanwhile, Derivatives Week handed BarCap three awards: Global Derivatives House of the Year, Credit Derivatives House of the Year and Structured Investment Distributor of the Year.
As closed-door discussions continued, more information about a potential ABN AMRO/Barclays tie up hit the press. Barclays was said to have $80 billion on the table, but a pending U.S. Justice Department investigation at ABN AMRO was considered a major roadblock to the deal. Although the exact nature of the investigation was not revealed, ABN AMRO had been fined $80 million in 2005 for violating U.S. money-laundering laws and sanctions against Iran and Libya, and it was widely assumed that the criminal probe was linked to these violations. Barclays also said that if it took over ABN AMRO, it planned to eliminate hundreds of investment banking jobs as part of an effort to cut 3 billion in costs at the Dutch bank. While Barclays and ABN AMRO negotiated, a new twist took place in April 2007. ABN AMRO confirmed that it had received a joint letter from a consortium made up of the Royal Bank of Scotland (RBS), Banco Santander and Fortisan invitation to start exploratory merger talks. ABN AMRO was tight-lipped about the possibilities, but confirmed that its managing and supervisory boards would consider the letter carefully, in line with their responsibilities while continuing talks with Barclays. The three-bank consortium ultimately offered about $90 billion for ABN AMRO$10 billion more than Barclays was offering. Before Barclays stepped forward, RBS had been seen as a likely buyer for ABN AMRO. In October 2007, Barclays withdrew its bid for ABN AMRO, and the RBS-led consortium went on to purchase the bank. Barclays received breakup fees of 200 million from ABN AMRO.
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GETTING HIRED
Friendly folks
True, Barclays interview process is a very selective, very difficult one, but you can also expect very friendly interviewers, insiders say. Candidates need to meet the personality the firm is looking for, proving that they have the right skills and talents. The firm puts candidates through a relatively long and challenging selection process. Only once a candidate has passed through several rounds of scrutiny can one expect to receive a job offer. And the candidates who do get asked in for interviews must be a fit with Barclays corporate culture in addition to having the technical skills required. You may be asked behavioral/fit-type questions, too, so be prepared. Insiders have also reported being asked about experience in previous positions and general question like Why are you leaving your current job? Also, make sure youre able to put a good spin on your departurethe firm likes to ask questions about the most and least enjoyable part of your previous work. Overall, interviews are pretty painless. We had some interesting discussions, enthuses one contact. And at the end of interview, you can ask any questions to the interviewer. As for school preferences, Barclays targets more than 30 schools but mostly top-tier graduate and undergraduate schools, such as NYU, Cornell, Penn, Princeton, Duke, Columbia, Dartmouth, Carnegie Mellon, Chicago, Boston College, Colby, Georgetown, Rutgers, UVA and MIT. If you are not from a target school, says an insider, its extremely difficult to get in the door, especially if you dont know anyone within the bank to refer you. Still, sources note its not impossible to get hired from a midrange school.
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Good people
Insiders report that Barclays is a good company to work for and a very pleasant experience. This might partially be because its a British company and, therefore, not as aggressive as it American counterparts. Just be prepared to work. Since it is a growing company, the work culture is hectic and employees are generally involved in enhancements and process improvements rather than just business as usual, admits one insider. Even so, innovation is encouraged. Hours spent at the firm tend not to be hectic. Working hours are what you would expect at any investment bank, but there are not too many long days. Another insider agrees that hours are not too bad, adding, You still have a life.
Lean on them
Management receives high marks from respondents, who call higher-ups extremely nice, supportive and always ready to help. Basically, you can meet anyone you want to meet, and they are all helpful. Offices receive high marks from insiders
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Vault Guide to the Top 50 Banking Employers 2009 Edition Barclays Capital
as well, as does the company dress code, which contacts describe as smart casual, meaning you can leave the top hat and tails at home.
Equality in action
Diversity within Barclays is huge and encouraged, which might be why people from all over the world work together within the company. The firm is an equal opportunity employer and its proven it from the new hires and the promotions. Insiders describe the company as a true melting pot, saying there are people from virtually everywhere with no predominance. Women, too, share an equal standing and quite a few are in very important positions throughout the firm.
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15
PRESTIGE RANKING
Rothschild
UPPER
Easygoing workplace
Rothschild North America 1251 Avenue of Americas, 51st Floor New York, NY 10020 Phone: (212) 403-3500 Fax: (212) 403-3501 www.us.rothschild.com
DOWNER
Not as well known in the US as it is overseas
BUSINESSES
Asset Management Investment Banking Real Estate
EMPLOYMENT CONTACT
www.us.rothschild.com/careers
THE STATS
Employer Type: Private Company Chairman: Baron David de Rothschild No of Employees: 72 (US) No. of Offices: 2 (US)
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Classic European boutique Great in Europe, third-tier bank in US White shoe, relationship-focused bank; good experience, a door-opener Strong M&A and restructuring, but prestige is not as strong as it should be
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THE SCOOP
Stellar pedigree
The Rothschild family tree is renowned for its deep roots and its legacy of luxury. Mayer Amschel Rothschild opened an eponymous financial firm in Frankfurt in 1769, and soon sent his sons to London, Paris, Vienna and Naples to establish branch offices. As their business grew, the Rothschilds developed the fastest courier operation in Europe (the better to send current market information between their banks). The familys success in finance paved the way for a classy lifestyle thats been handed down through the centuries: the Rothschilds also operate private vineyards and oversee several estates crammed with fine art and famous architecture. But instead of abandoning banking for fine wine or expensive art, Mayer Rothschilds descendents have kept a tight hold on the family business. Today, the N.M. Rothschild Group has 40 offices in 30 countries, providing investment banking, corporate banking, private banking and trust services to governments, individuals and corporations around the world.
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Mid-market skills
In the second half of 2007, Rothschild advised global industrial manufacturer Tecumseh Products Company on the $220 sale of its Fasco business unit to the Regal Beloit Corporation, and counseled French nuclear power company Areva on its $2.5 billion bid for UraMin Inc., a South African uranium exploration firm. According to Thomson Financial (now Thomson Reuters), Rothschild placed No. 10 in 2007 global announced mergers and acquisitions, advising on 390 deals worth $566.1 billion. The firm also ranked No. 10 in worldwide completed M&A with 329 deals valued at $354.1 billion. These positions were up one spot from Rothschilds 2006 ranking at No. 11 in both announced and completed mergers and acquisitions. In the United States Rothschild ranked No. 25 in announced transactions, with 82 deals worth $31.3 billion. In completed U.S. M&A it ranked No. 20, advising on 75 transactions worth $46.9 billion. Based on imputed fees, Rothschild dominated the mid-market M&A market in 2007. It ranked first for deals with values up to $50 million, $100 million and $200 million, and for transactions valued at $500 million and up Rothschild took second place, just behind Goldman Sachs.
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End of an era
In 1996, Rothschild teamed with Dutch bank ABN AMRO to form a global equity markets joint venture, ABN AMRO Rothschild. The project came to a halt in December 2007 following the 99.1 billion takeover of ABN AMRO by a banking consortium led by the Royal Bank of Scotland. Apparently the Royal Bank never intended to keep ABN AMRO Rothschild aliveas soon as the consortium gained control of ABN AMRO, it began reducing headcount in the Rothschild joint venture. By the time its demise was announced one month later, RBS had already laid off half of ABN AMRO Rothschilds staff. Before its shuttering, ABN AMRO Rothschild had ranked among Europes top-10 equity underwriters, and had completed deals worth $7.6 billion in 2007. According to a joint statement from the two banks, ABN AMROs equity capital markets activity would be completely absorbed into RBSs global banking and markets division. For its part, Rothschild said its ECM team would continue providing research, advisory services and execution support to issuers. Many analysts speculated that Rothschild will seek a new partner for its equity business in 2008, so it can continue its work as an underwriter.
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GETTING HIRED
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Rothschild looks for associates who hold an MBA or equivalent advanced degree. The firm wants candidates with strong analytical skills, good grades, polished written and verbal presentation skills, and leadership and teaching skills. In addition, the firm hints that its looking for speed. Rothschild says to succeed as an associate youll need to be able to think on your feet and be able to move quickly from one priority to another.
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16
PRESTIGE RANKING
Bear Stearns*
In March 2008, things went from bad to worse for Bear Stearns. Facing collapse, Bear received a temporary reprieve when JPMorgan Chase & Co. and the New York Federal Reserve moved in to provide the firm with emergency funding. Bear, whose shares immediately fell 53 percent on the news, said that its financial situation had significantly deteriorated after it fell prey to a cash shortage brought on by the credit crisis. But within a matter of days, Bears clients withdrew approximately $17 billion from the firm, leaving the 85-year-old Bear with no choice (other than claiming bankruptcy) but to sell. And on Monday, March 16th, JPMorgan Chase announced it would be buying Bear for $2 a sharejust $236 million, or approximately 97 percent less than its value in only the previous week. To help finance the deal, the Federal Reserve agreed to provide JPMorgan Chase with about a $30 billion credit line, which The Wall Street Journal said was believed to be the largest Fed advance on record to a single company. The mood at Bear Stearns U.S. headquarters the day after its demise became public news was an expectedly solemn one, though there was a spot of humor mixed in, albeit of the dark variety. On the morning of March 17th, some Bear employees arrived to work to find a $2 bill taped to one of the buildings main entrances representing the firms$2-a-share buyout. Later, according to Reuters, one employee joked, Where is the $2 bill? I might need that tomorrow! A few months later, on May 29, 2008, in a meeting that lasted just 10 minutes, Bear Stearns shareholders officially approved the firms $1 billion acquisition by JPMorgan Chase (the backlash from Bear shareholders at such a measly per share offer resulted in the offer being raised to $10 per share.) Although Bear Chairman James Cayne said in a statement that the feeling behind the transaction was simply remorse and that there was no anger regarding the deal, others felt differently. According to The Wall Street Journal, shareholders expressed outrage that Cayne was not going to be suffering financially like a lot of other people within the firm. Other Bear employees turned their backs against the deal entirely, voting against the buyout with the intent of putting Bear in bankruptcy territory.
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17
PRESTIGE RANKING
Bank of America
KEY COMPETITORS
Citi Wachovia Corporation Wells Fargo
100 North Tryon Street Charlotte, NC 28255 Phone: (704) 388-2547 Fax: (704) 386-6699 www.bankofamerica.com
BUSINESSES
Global Global Global Global Business & Financial Services Capital Markets & Investment Banking Consumer & Small Business Banking Wealth & Investment Management
UPPERS
Good work/life balance Flexible hours
THE STATS
Employer Type: Public Company Ticker Symbol: BAC (NYSE) Chairman, President & CEO: Kenneth D. Lewis Revenue: $119.0 billion (FYE 12/07) Net Income: $14.9 billion No. of Employees: 198,000 No. of Offices: 6,100
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DOWNERS
Highly competitive culture Going through a rough spot as of late
EMPLOYMENT CONTACT
www.careers.bankofamerica.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Excellent commercial abilities Expansion into investment banking was a disaster Good reputation, but centered in the US only; given the upcoming recession, this could be very difficult for them OK, but too big; if they dont mess up, theyll be fine
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THE SCOOP
Americas bank
Not often is it good to be all things to all people. But Bank of America has managed to serve the needs of millions of Americans as the countrys first coast-to-coast bank. Second only to Citi in terms of worldwide assets, Bank of America boasts 59 million consumer and small business relationships, more than 6,100 retail banking offices, nearly 18,500 automated teller machines and more than 25 million active online banking users. Outside the U.S., Bank of America serves clients in 150 countries, and as of early 2008, BofAs client list included 99 percent of the U.S. Fortune 500 and 83 percent of the Global Fortune 500. In February 2008, BofA was added to the Dow Jones industrial average, the first change to the Dows composition since 2004. The bank serves its customers through three main business units: global consumer and small business banking, global corporate and investment banking, and global wealth and investment management (GWIM). BofAs corporate headquarters are in North Carolina, but most of its investment banking operations are centered in its offices in New York City. Despite recent restructuring and layoffs in the global corporate and investment banking division, BofA said it would continue with plans to build a new tower for its business in New York. The Bank of America tower, a 55-story, $1 billion skyscraper near Bryant Park in Midtown Manhattan, is was completed in early summer 2008.
Opportunity knocks
Now known by its tagline The Bank of Opportunity, BofAs roots go back to 1784 when Massachusetts governor John Hancock signed a charter for the Massachusetts Bank, one of the first three commercial banks in the U.S. More than 50 predecessor banks were eventually folded into the BofA behemoth. The company adopted the Bank of America name in 1988 when NationsBank acquired California-based Bank of America. Major recent mergers include the $47 billion FleetBoston deal in 2004 and the $35 billion acquisition in 2006 of credit card giant MBNA, which boasted more than 40 million accounts. Immediately after the MBNA deal wrapped, BofA became the largest credit card issuer in the U.S. More recently, in October 2007, BofA completed its purchase of LaSalle Bank Corporation. The $21 billion acquisition of LaSalle made BofA the largest bank by deposits in Illinois and Michigan, and added 17,000 commercial banking clients, 1.4 million retail customers, 400 banking centers and 1,500 ATMs to BofAs holdings. In May 2008, LaSalle branding was replaced with Bank of Americas at bank locations and ATMs. BofA saw one acquisition slip away in 2007, though. In April, the bank had announced it would buy a 24.9 percent stake in SLM Corp, better known as the student lender Sallie Mae. The $2.2 billion deal was supposed to close in late 2007, but because Sallie Maes outlook suffered in rough credit markets, the deal fell apart in December 2007.
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Credit collapse
While Bank of America was steadily growing its global markets and investment banking business, the market was slowly gearing up for a major downturn. The bad news finally hit hard across the financial services industry, and in the third quarter of 2007, Bank of America had a net income decline of 32 percent to $3.70 billion from $5.42 billion a year earlier. It also reported a drop in diluted earnings per share of 31 percent to $0.82 from $1.18. But the company took its biggest hit in its global corporate and investment banking division, which reported a 93 percent decrease in net income from $1.43 billion last year to a paltry $100 million this year. The decline was due mainly to write-downs in its global markets business. The firm took $607 million in trading losses, $527 million in losses related to mortgage and credit derivatives, and a $247 million write-down for leveraged loans. CEO Kenneth Lewis responded to a question on the third quarter conference call about the potential acquisition of an investment bank by saying, Ive had all the fun I can stand in the investment banking business at the moment. Bank of America moved quickly in response to changes in the market to reduce its investment banking capabilities. The company eliminated 3,000 banking positions, mostly within the business lending, treasury services, capital markets and advisory services
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and support services divisions. At the same time, Brian Moynihan, who had previously led the GWIM business, was tapped to succeed Gene Taylor at the head of BofAs global corporate and investment bank. Taylor, who had spent 38 years with BofA, agreed to remain on board as a temporary adviser to Moynihan to assist with the transition. Keith Banks, president of BofAs asset management business, took Moynihans place in the GWIM division. A strategic review of the capital markets and investment business concluded in January 2008, with BofA saying it would focus the divisions operations on areas of traditional strength. That meant reducing activities in structured products, especially risky collateralized debt obligations (CDOs); realigning overseas businesses to build on debt, cash management and trading; and selling off the equity prime brokerage business. This led to employment reductions of 650 in the global markets and global investment banking groups. Approximately 12 percent of BofAs capital markets and investment banking staff were affected. Lewis called the cuts a reaction to the realities of today and as far as we can see in the future. One week later, news spread that BofA cuts included a large number of securities stock analysts. Robert Morris, Institutional Investors top-ranked oil and gas analyst for six consecutive years, was among those who lost his job. John McDonald, Institutional Investors No. 2 large-cap bank analyst in 2007, was also let go.
A rough quarter
Immediately after announcing its restructuring, BofA had bad news for its investors: earnings in the fourth quarter of 2007 fell 95 percent, the result of $5.28 billion in write-downs related to mortgage-related losses. These write-downs reduced trading profits in the capital markets group by about $4.5 billion, and other income by about $750 million. BofA lost $400 million to struggling cash funds, which led to additional write-downs of $400 million linked to securities originally purchased from those funds. Market conditions also shook BofAs equity investment businesses, sending income down $750 million for the quarter.
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BofAs corporate and investment bank took a $2.76 billion loss in the fourth quarter, quite a slide from the $1.4 billion profit it booked in the fourth quarter of 2006. Earnings at the consumer and small business division were also down, falling 28 percent to $1.87 billion. However, the firm remained in the top 20 of few important investment banking league tables, according to Thomson Financial (now Thomson Reuters). BofA ranked No. 19 in global announced merger and acquisition volume, No. 10 in global debt, No. 10 in U.S. announced M&A, No. 10 in U.S. equity and equity-related underwriting, and No. 10 in U.S. IPO proceeds.
Countrywide on board?
In January 2008, BofA announced it would be acquiring the countrys largest mortgage lender, Countrywide Financial, for approximately $4 billion in stock. The price valued the troubled Countrywide at $7.16 per share, and under the terms of the deal, Countrywide shareholders would receive 0.1822 of a BofA share in exchange for each Countrywide share. In 2007, California-based Countrywide Financial had become a symbol of the American mortgage market collapse, as its foreclosure rate doubled, it recorded its first quarterly loss in 25 years and rumors flew that it was on the verge of bankruptcy. So why would BofA make the acquisition? For one thing, the bank already owned a 16 percent stake in Countrywide (BofA paid $2 billion for the share in August 2007), and part of its stakeholder rights was the ability to beat any other bid for the lender. In communications about the deal, BofA noted it will gain significant capabilities, including Countrywides proven distribution and technology operations. In addition, the merger will position BofA as a leader in the effort to help keep more Americans in their homes and ensure that more Americans have the opportunity to achieve home ownership. Although Countrywides subprime mortgage issues topped headlines, its core business is its loan servicing portfolio, in which revenue has remained steady (subprime-related mortgages only account for 10 percent of its portfolio). Analysts also noted that BofAs proposal was priced at a discount, and in 10 years, BofA could turn it into a profitable piece of its pie. The purchase is expected to close in July 2008.
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GETTING HIRED
Gear up
The hiring process is a positive one, but it can also be disorganized, insiders report. Some describe it as an initial informal interview, others as a very lengthy and tricky process. Another source says the interviews are very relaxed, more like a conversation, and I was not asked any specific questions. It seemed more like they already knew they wanted to hire me and were just spending the requisite 45 minutes talking to me, confides one contact. Yet another interviewee says, Everyone was very social, personable and kind, and they treated me and all others with respect.
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18
PRESTIGE RANKING
Wachovia Corporation
KEY COMPETITORS
Bank of America Citi JPMorgan Chase SunTrust Banks, Inc. Wells Fargo
301 S. College Street, Suite 400 Charlotte, NC 28288 Phone: (704) 374-6161 Fax: (704) 383-0996 www.wachovia.com
BUSINESSES
Capital Management Corporate & Investment Bank General Bank Wealth Management
UPPERS
Reasonable hours Great diversity
THE STATS
Employer Type: Public Company Ticker Symbol: WB (NYSE) CEO & President: Robert K. Steel Net Income: $6.312 billion (FYE 12/07) No. of Employees: 122,000 No. of Offices: 3,889
DOWNERS
Management hierarchy in place Advancing can be difficult
EMPLOYMENT CONTACT
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www.careers.wachovia.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Expanding out West; has done a good job aligning businesses and formulating a new company model Another corporate giant trying to catch Bank of America Prestige is rising Investment banking advisory isnt competitive with bulge bracket firms
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THE SCOOP
In 2007, Wachovia implemented some organizational changes, making the banks real estate financial services group a part of the corporate and investment banks global markets group. A brand-new marketing division emerged, offering corporate marketing, e-commerce, market research and customer service. As of early 2008, Wachovia Corporation reported assets of $782.9 billion and total deposits of $449.1 billion.
Voting rights
In February 2007, Wachovia Corporation announced that it wanted to change the way its directors were elected. The bank asked shareholders to authorize annual elections for directors, and to require that directors running in uncontested elections obtain a majority of votes. The Wachovia board of directors approved the plan first and shareholders backed their decision at a meeting in April 2007. The new policies, which took effect in 2008, are designed to improve corporate governance. In January 2008, the CTW Investment Group sent letters to Wachovias board of directors risk committee to ask them to explain what they did to protect the company from exposure to the subprime mortgage crisis. The letters were sent to directors Dona Davis Young, Donald M. James, Van L. Richey and William H. Goodwin. According to Reuters, those four will be expected to explain how their actions were meant to protect Wachovia. If they cant provide an adequate explanation, CTW will recommend that they not be re-elected to the board when voting takes place this year.
Empire building
In the past few years, Wachovia has been busy building an empire. Less than two years after its $14 billion merger with First Union in 2001 (although First Union actually purchased the significantly smaller Wachovia, the Wachovia handle survived the marriage), Wachovia and Prudential Financial completed the legal merger of their retail brokerage business in July 2003. In November 2004, it acquired Birmingham, Ala.-based SouthTrust Corporation for $14.3 billion. In 2006, Wachovia added Golden West Financial to its ranks for a price tag of $25.5 billion. One of the companys most significant acquisitions came in 2007, when it snapped up brokerage firm A.G. Edwards for $6.8 billion in cash and stock. The transaction made Wachovia the third-largest retail brokerage firm in the world. With A.G. Edwards
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under its belt, Wachovia has expanded its global reach and now has almost 15,000 financial advisers. A.G. Edwards shareholders received $0.98 share of Wachovia common stock and $35.80 in cash for their A.G. Edwards shares. The merger integration process is not expected to be fully realized until sometime in 2009. While all this acquisition may be padding the companys coffers, the move to acquire various businesses hasnt been particularly well received by shareholders. As of May 2008, Wachovias share price was $28, down from a trailing 52 week high of $57, and the firm hasnt experienced any major earnings as a result of the new additions. Wachovia employees have also suffered as a result of the merger bonanza. The company said in reports on the merger that it would be eliminating 4,000 jobs over a four year period and closing approximately 230 brokerages.
Subprime suffering
Wachovia became one of the many victims dreaded mortgage crisis in 2007, taking losses of nearly $1.1 billion in collateralized debt obligations. As subprime concerns hit their peak in fall 2007, Wachovia suffered losses across the board that were reflected in its third quarter earnings report from 2007. Earnings in the corporate and investment banking division were down $428 million as a result of the billion-dollar losses on CDOs. However, there were bright spots in the companys quarterly report. The wealth management division recorded earnings of $92 million, while growing revenue by 4 percent. In addition, net interest income was up as a result of the merger with Golden West, and Wachovia garnered high company loyalty scores of 53.1 percent, a record for the company. After an 80 percent drop in profits at Wachovias investment banking division in the third quarter of 2007, layoffs were imminent. In late October 2007, the bank cut about 200 jobs, or about 5 percent of its investment banking division. The layoffs primarily affected workers in North Carolina and New York, but other areas were also involved.
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In January 2008, Wachovia announced that it had barely made money in the fourth quarter of 2007, as profits plummeted 98 percent, a loss it attributed to a $1.7 billion reduction in the value of its portfolios as well as a $1.5 billion write-down for bad loans. Profit fell to $51 million, down from $2.3 billion in the same period in 2006. The first quarter of 2008 wasnt much better, as Wachovia reported a net loss of $350 million before preferred dividends. These results, which reflect higher credit costs and the continued disruption in the capital markets, compared with earnings of $2.30 billion, or $1.20 per share, in the first quarter of 2007. And during the second quarter, more bad news surfaced, as it was revealed that the firm was being investigated by federal authorities for allegedly laundering drug proceeds by Mexican and Colombian money-transfer companies. Wachovia is one of several firms that have come under investigation for such activities. According to The Wall Street Journal, Wachovia and other U.S. banks severed relationships with Mexican foreign-exchange firms in December and January after authorities began their inquiries. Some have struck agreements with the government to improve their efforts to fight money laundering, avoiding prosecution.
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straight year on the American Customer Satisfaction Index, a survey conducted by the University of Michigan Ross School of Business. As far as being a great place to work, Wachovia consistently scores high marks. Recent honors include being named one of Working Mothers 100 Best Companies for the 11th consecutive year, ranking in the top 50 Companies for Diversity by DiversityInc magazine for sixth consecutive year and appearing on Essence magazines Top 25 Great Places to Work list. In addition, CollegeGrad.com named Wachovia one of its Top 100 Companies for the fifth consecutive year and Training magazine ranked the firm on its list of North Americas top 125 companies for Developing Human Capital. Wachovia is also one of Pink magazines Elite Eight of Top Companies for Women. But the awards dont only speak to the banks client satisfaction. The bigwigs of Wachovia have recently racked up a few prizes in the last few years. Former CEO Ken Thompson was named one of the Best Chief Executive offices among financial services companies in Institutional Investor, while CFO Tom Wurtz was named one of U.S. Banker magazines Top 10 CFOs in 2007. Institutional Investor also named Wachovia its Most Shareholder Friendly Company among large cap banks in its April 2007 issue.
Still giving
Even though Wachovias in a financial rough spot right now, the company continued to give to charity in 2007. Among its contributions last year were: a $1 million gift to help California wildfire victims rebuild their lives. The Wachovia Foundation also awarded an unprecedented $8.25 million to two community development finance institutions the Latino Community Credit Union in North Carolina and ACCION in Texasas part of a joint award with the Opportunity Finance Network. The so-called NEXT awards strive to help financial institutions serving low-income individuals.
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GETTING HIRED
A thorough review
The recruiting process at Wachovia can be long and tough, insiders say. Wachovia recruits heavily at undergraduate and graduate schools; an up-to-date list of target schools can be found in the careers section of the banks web site. Theres also an online application system for candidates whose schools arent on the list, and the process for summer positions mirrors the one for full-time employment. Campus candidates usually begin with an on-campus screening interview. If that goes well, it will lead to an invitation to a Super Day interview, often in Charlotte but sometimes in New York or another major regional office. In some years, Wachovia has two Super Days, says a source. It is best to go to the first one, because the firm fills its positions early. The second day has fewer jobs available. Insiders report different Super Day experiences. One analyst recalls five interviews with various people, and no questions were all that surprising or out of the ordinary. Another survived eight interviews with various associates, vice presidents and managing directors. One contact in New York says he had an additional
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two half-hour phone interviews between the initial interview and the Super Day. These interviews were both technical and behavioral, he says. I got the feeling they had a list of technical questions and behavioral questions and they simply chose one of each.
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As far as specific positions go, the financial specialist role is a good fit for a college grad with a business or finance concentration. And it is also good for someone who has done sales or persons who have worked in real estate sales. But either way, the bank is termed as honestly one of the most and equitable employers I have ever seenespecially for their size. The firm is also fair about making sure employees get enough training. Once hired, you will go through roughly a month of training, comprised primarily of self-paced computer instruction, observation of a teller mentor, simulated transactions, and finally hands-on practical application of learned skills before being released as a full-fledged teller. Also, Wachovia will pay for employees to go through four months of training and pay for the employee to get their Series 6 and 63 licenses so they can sell mutual funds and annuities.
Big bucks
What you make seems to depend on how hard you want to work. A financial specialist is offered a base pay, and then gets paid sales credits for every product they sell, such as checking accounts, check cards, online banking, mortgages, home equity credit lines, credit cards, business lines of credit and merchant services. Those who make the most on this pay scale can get $15,000 and $20,000 bonus checks in a month because they brought in a large commercial account to the bank. Advancing within the firm is a distinct possibility, but as you become more successful and have more sales to make, you still have to handle the walk in traffic and meet their needs too. So it can become a lot of pushing crap off your desk while youre in middle of amortizing a loan to help someone with a question about their safe deposit box, a scenario that one insider admits can get aggravating. Another insider says that opportunities for advancement arent just handed to you based on job performance. You have to actively seek them out, or else you will be kept at the same level until you leave the company.
Fairly reasonable
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But as far as hours spent at the office go, expect to spend nine to 10 hours a day working. For the first year, I was working until 8 p.m. or 9 p.m. and coming in at 8 a.m. or 8:30 a.m., says one insider. The secret seems to be utilizing a good old fashioned bit of time management. To get all of your paperwork done, make your outbound sales calls, learn new stuff and work your loans on the computer system can be a long day. But you will be happy if you perform well. Part of performing well means adhering to the formal dress code. All employees are expected to dress professionally every day, which means a shirt and tie with slacks, belt and dress shoes for the men, and blouse and skirt or dress pants with closed-toe shoes for the ladies.
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19
PRESTIGE RANKING
399 Park Avenue New York, NY 10043 Phone: (800) 285-3000 Fax: (212) 793-3946 www.citi.com
BUSINESSES
Commercial Business Consumer Finance Retail Banking Retail Distribution
KEY COMPETITORS
Bank of America J.P. Morgan Chase
THE STATS
Employer Type: Division of Citi CEO, Citi: Vikram S. Pandit CEO, Consumer Banking North America: Terri Dial Revenue: $56.9 billion* (FYE 12/07) Net Income: $7.8 billion* No. of Employees: 170,000** No. of Offices: 7,500**
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UPPERS
Culture is friendly, professional, supportive and energetic Superb training
DOWNERS
Bureaucratic Some improvements need to be made with respect to diversity
EMPLOYMENT CONTACT
www.careers.citigroup.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Premier commercial bank Bad news after credit crunchhas been hit hard by the economy Strong relationships with Fortune 1000 companies Good organization, but awful financials right now
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THE SCOOP
Global giant
Citi is a global banking giant, with over 200 million customer accounts in more than 100 countries around the world. Its four main business groups are consumer banking, global cards, global wealth management and institutional clients, which includes the markets and banking and alternative investments divisions. Citis commercial and consumer businesses are carried out by the consumer banking group, which includes U.S. and international retail banking (offered by Citibank, CitiFinancial, Primerica Financial Services and Citibank Direct), U.S. consumer lending (including student loans, real estate lending and auto loans), international consumer finance, a commercial finance group (offering banking, leasing and commercial real estate), and a microfinance group. The global consumer group is one of Citis biggest revenue drivers, typically bringing in more than half of each years Citi-wide earnings.
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Fix it!
Citi had no choice but to go into recovery mode after the U.S. housing market collapsed in 2007. In spring 2007, Citi eliminated 16,000 jobs worldwide; by fall, rumors that the banks third quarter earnings had fallen by 60 percent were proven accurate. This led to major executive changes (and equally major write-downs). Citis chairman and CEO, Chuck Prince, resigned from both posts in November 2007. After a monthlong search, Citis board named Vikram S. Pandit its new chief executive. Sir Win Bischoff, a London-based executive who served as acting CEO during the search period, became chairman. Pandit joined Citi in May 2007 when the bank bought Old Lane, a hedge fund he ran. Before that, he had been president and chief operating officer of Morgan Stanleys investment bank. To further stabilize Citi after the losses, the bank sold a $7.5 billion stake in itself to Abu Dhabis investment authority, receiving much-needed capital in exchange.
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provide rural development financing, particularly in areas damaged by flooding. Citibank coordinated the establishment of the 1.23 billion BDT (Bangladeshi Taka) facility, which was the first such facility created for a microfinance institution. Citi provided 710 million BDT up front and arranged the rest through partner banks. A BRAC spokesman said the collaboration underlines Citis commitment to supporting the cause of microfinance globally.
Princes legacy
The fourth quarter 2007 brought a net loss of $9.83 billion, $18.1 billion of write-downs and credit costs linked to subprime exposure in fixed income markets, as well as a $4.1 billion increase in consumer credit costs and losses on consumer loans. Citis full-year net income was just $3.62 billion. The consumer banking group fared better than the institutional clients group (which houses the fixed income division). U.S. consumer revenue grew 6 percent versus the fourth quarter of 2006, and deposits and managed loans were both up 10 percent. However, costs were up 13 percent, because Citilike several other major banksshared the costs of litigation aimed at Visa Inc. (But when Visa went public in 2008, these banks received shares in compensation.) The consumer credit crunch dented global consumer, as borrowers fell behind on their mortgages, loans and credit card payments. The U.S. commercial business division was affected, too, as higher credit costs and losses offset increased deposit balances and loan business. For 2007, U.S. consumer revenue totaled $31.7 billion, with net income of $4.1 billion; international consumer revenue was $25.2 billion, with net income of $4.2 billion. In the wake of 2007s earnings reports, most analysts placed the blame on Chuck Princes inability to contain costs as the credit market imploded.
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Order, please
Early 2008 saw Pandit taking several key steps to get Citi back on track. He outlined a plan to raise $12.5 billion of capital through a private stock sale; buyers included the Government of Singapore Investment Corporation (GIC), the Kuwait Investment Authority, Prince Alwaleed bin Talal bin Abdulaziz Alsaud, the New Jersey Division of Investment and former Citi CEO Sanford Weill and his private family foundation. At the same time, a public sale of $2 billion in newly issued stock took place. Additionally, Citi lowered its quarterly dividend to 32 cents per share, and sold off Citis ownership interest in Japans Nikko Cordial Simplex Investment Advisors.
Rock on
In February 2008, Citi became the exclusive credit card partner of music giant Live Nation, creating an exclusive Private Pass program that will give cardholders access to presale concert tickets, box seats, premium seating, exclusive merchandise and VIP artist events. Live Nation will benefit from exposure to Citis 150 million U.S. credit card holders, and as part of the deal Citi
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will also receive marketing perks like venue naming rights, branding rights at concerts and a special partnership with Live Nations new ticketing operation.
GETTING HIRED
Come on board
If youre hoping to jump on the Citi train, be aware that the firm is very selective and its very difficult to attain a position. Citi tends to recruit from the top universities, although this is not to say it is impossible to be hired if youre a student of a non-core school. Some of the schools Citi are likely to target, however, include Cornell, Rutgers, University of Illinois, Columbia, Yale, NYU and Georgetown. The financial management associate program is called extremely selective and exclusivethe hiring is competitive. Plus, there are only a few graduate level positions available each year. And even though there are many on-campus interviews, typically only a couple at most make it through to the next round. For that reason, deep program research is recommended. A Super Day meeting with people from all levels is typical to encounter at some point during the process. A tip from an insider: Depending on your school and proximity to the Citi offices you are interviewing with, you might want to meet with people for informational interviews. As for the job interview process for other positions within the firm, expect anywhere from one to three general firm informational sessions, and questions that explore a combination of fit, behavioral and technical aspects. Also anticipate various questions from your background to quantitative analysis.
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Giant steps
You cant get around it: Citi is a giant. Because of this, the culture is large, bureaucratic and in flux. And this makes it critical to be flexible, adaptable to constant change and good at networking. Still, the organization is friendly, professional, supportive and energetic, and the firms main asset is its people. One insider admits, It is great to work with very talented people who are accessible and willing to share their knowledge with you even if the culture can be very political in some parts of the company. It also helps to be willing to sacrifice for the good of the firm. Then again, the culture varies based on the underlying business unit. As versatile as things sometimes are at Citi, you should probably try not to apply those ideals to your dress within the office. It is, in many ways, a traditional work environment that promotes dress thats at least business casual (although suits and ties are worn by some every day). Also keep in mind that theres not a big emphasis on flexible work schedules, and long hours are common (although it does depend on the work you do). Even if youre not in the office, it looks like the firm makes sure youre always connected. One insider says, We are offered remote access and BlackBerries to be connected even if were out of the office or traveling. But mostly, if you get your work done, youre free to leave. One insider adds, I feel like I work a lot of hours, but I also have interesting work to keep me engaged and happy here. Compensation seems to be pretty engaging for respondents as well. Insiders rate their salaries highly, and perks are extensive snacks throughout the day, a relocation allowance, meals after 8 p.m., a sign-on bonus, company discounts in gyms and free access to most museums in NYC for employees and guests. In addition, some sites have on-site gym and child care facilities for employees. Time off is also generous.
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Watchful eyes
There is plenty of work to do at Citi, and managers always ensure that youre busy and challenged by the kind of work they give you. But rest assured that people are treated with respect. I have had the opportunity to manage people and to be managed by several people, and I am satisfied with both, declares one insider. Another contact says his manager encourages participation in all projects and activities and compliments a job well done. Training is participatory-based as well. Citi believes in the 70-20-10 approach, in which 70 percent of learning comes from onthe-job training, 20 percent comes through mentoring and 10 percent through formal education. One insider calls the formal part superb, adding that training is organized and efficient and provides ample experience in various subjects from executive writing to credit analysis. And informal training and mentoring is also focus, as many people are concerned with helping you develop your career.
Ramping it up
The firms diversity efforts are very good for the most part, contacts say. There is a large representation of women at the firm (even if numbers of women in top slots are few). Women employee networks have increased significantly in the last couple of years. And a focus on ethnic diversity is visible in all businesses. However, there are some improvements that need to be made. Citi is inclusive and very diverse, but diversity seems to concentrate in the most metropolitan areas such as New York, D.C., California, Miami and Dallas. In other words, it still needs significant improvement in some areas were Citi has a presence in the U.S.
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PRESTIGE RANKING
2700 Sanders Road Prospect Heights, IL 60070 Phone: (847) 564-5000 www.hsbcusa.com
DEPARTMENTS
Commercial Banking Consumer Finance Corporate Investment Banking & Markets Personal Financial Services Private Banking
UPPER
Committed to a good work/life balance
EMPLOYMENT CONTACT
See careers section of www.hsbcusa.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong international presence; weak in the US Not as widely known, but up-and-coming Global monstera huge player in Asia Great commercial bank, weak for advisory
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Vault Guide to the Top 50 Banking Employers 2009 Edition HSBC North America Holdings
THE SCOOP
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New appointments
If promoting its workers is just a natural extension of keeping talented employees interested in the bank, HSBC is on the right path. In February 2008, HSBC announced that Brendan McDonagh would be taking over as CEO of HSBC North America Holdings. The appointment comes a year after McDonaghs promotion to chief operating officer of the firms North American consumer finance unit. Niall S.J. Booker is succeeding McDonagh, who in turn is succeeding Siddharth Mehta, who left the company in February 2007.
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Whoops
In March 2008, MarketWatch reported on banks that received the most federal complaints via the Office of the Comptroller of the Currency, which supervises banks and credit card issuers. The results were somewhat surprisingHSBC North America came in fifth place in having the largest number of customer complaints in 2007 (Bank of America received the dubious first place honors on the offices list). Within the same month, the Office of the Comptroller of the Currency also announced that it was ordering HSBC (along with eight other banks) to give the office their monthly home loan data so the regulator could monitor the banks and their loans on a closer basis.
Green power
In January 2008, the Environmental Protection Agency released its Top 25 list of green power purchasersthat is, companies who purchase more than 300 million kilowatt-hours of green power each year. HSBC captured the No. 10 spot on the list, moving up seven spots from the previous year. Due to its purchasing of 10 times the agencys minimum requirement, HSBC also received membership into the EPAs Green Power Leadership Club. EPA spokesman Stephen Johnson applauded HSBCs move, adding that by voluntarily shifting to renewable energy, HSBC North America is proving you dont need to wait for a signal in order to go green. The firms green efforts are ongoingin October 2005, HSBC also became the first bank to become 100 percent carbon neutral, a practice that severely limits carbon emissions.
Back in black
Despite enduring what its chairman Stephen Green called extraordinary strain, including its share of subprime mortgage issues, HSBC Holdings plc managed to come out in the black for 2007. In the face of $2.1 billion in write-downs related to subprime
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credit exposure and other factors, the bank still ended up with a $19.1 billion profit for the year, up from $15.8 billion in 2006. Revenue was up as well, soaring 20 percent from the previous year to $79 billion. The firms asset management unit had a good year, booking total operating income of $1.34 billion, up from $1.07 billion in 2006. And the banks private banking group which encompasses its investment banking, corporate banking and insurance servicesbrought in record results, including a $1.5 billion profit, up 6.2 percent from 2006.
GETTING HIRED
More of a challenge
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If anything, HSBCs recruitment process is getting tougher, warns one insider. As far as qualifications go, the firm tends to select the best, but a big part of getting hired is your timing and the position youre applying for. Potential candidates must go through several rounds of one-on-one interviews, group interviews, analytical and verbal tests, and case studies. After the process concludes, each candidate is discussed and an offer is extended only to those on whom all interviewers agree. Expect up to seven individual and group interviews that include the standard background and experience questions as well as slightly offbeat tests and exercises, such as what is your favorite color? HSBC recruits from all over the country and the globe but tries to woo candidates who are mostly from the top-20 undergraduate schools, although they will interview applicants from any school, provided that he or she has what it takes.
Settle in
The interviewing process seems to varybut seems to include a bevy of different questions asked by interviewers. These questions might range from what is your strategy to be up-to-date with current financial news? to whats a situation when a group of people disagreed with you and how did you manage it? (For the latter, one insider suggests briefly explaining the situation, your role, your contribution and what you ultimately learned from it.) You might also have to field these: Tell me an example of a time where you realized more than what you expected, Give me an example of a time where people where against your decision and how you managed it, Tell me about a time where you used something you learned in your studies and applied it to a real business situation, and What recent events may have an influence on HSBC? In addition, be ready to answer these: How HSBC can help the company in achieving its objectives? and How do you see this company in five to 10 years? Most of all, they want to get a feel for you as a person. The interview aims at understanding whether you feel confident when your ideas are challenged and whether you are able to change your opinion based on new facts. You might also get asked about your educational background, personal achievements and youre willingness to work long hours.
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Life at HSBC
The dress code at HSBC is business casual Monday through Thursday, but on Friday, jeans and casual clothing are permissible. In fact, the only office that seems to follow a formal dress code is the Washington, D.C., office. Most employees wear a shirt and pants, although the dress code is formal when working with clients. And when it comes to management, employees report an overall very good experience. There is a good dialogue that goes on and I feel comfortable consulting with my managers if Im confused. One insider says he works for a great team and has never been berated or made to feel like I dont play an important part of the team. Offices mostly receive less-than-stellar marks, however. The building is quite old, and it shows, says one New York contact. On some trading floorsthere are three in New Yorkthe ceiling is too low, and there is very little space on the desks and between rows, making you feel cramped. The insider concedes that the London and Hong Kong offices are much nicer. Another New York contact says, I covet high walls, but they are renovating our floor this year, so things will be changing presently. My floor happens to be fairly boring, but other floors are very nice.
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PRESTIGE RANKING
Houlihan Lokey
RANKING RECAP
Quality of Life #1 Relationship by Managers #1 Best Employers to Work For #2 Offices #2 Overall Satisfaction #3 Selectivity #3 Compensation #3 Hours #7 Training Diversity #7 Diversity with Respect to Women #9 Overall Diversity #10 Diversity with Respect to Minorities #12 Diversity with Respect to GLBT
1930 Century Park West Los Angeles, CA 90067 Phone: (310) 553-8871 Fax: (310) 553-2173 www.HL.com
DEPARTMENTS
Financial Options & Advisory Services Financing Mergers & Acquisitions Restructuring
THE STATS
Employer Type: Private Company Co-CEOs: Jeffrey Werbalowsky & Scott Beiser No. of Employees: 800+ No. of Offices: 14
KEY COMPETITORS
Citi Credit Suisse Goldman Sachs
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UPPERS
Sense of community and teamwork hard to find at a big bank Working on deals in a capacity few bankers at [the junior] level in other firms do Secure environmentwere not cutting people like the other investment banks
DOWNERS
Some growing pains as the firm expands Our name is not high profile on Wall Street Lots of hours
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
EMPLOYMENT CONTACT
See careers section of www.HL.com
Great middle-market investment bank; nice people Gets more credit than it deserves Strong restructuring practice; fairness opinion specialists Dominant in middle marketworks on a lot of dealsbut doesnt have a prestigious name
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THE SCOOP
Top-notch advisor
Since California-based Houlihan Lokey was founded in 1970, financial advisory services have been the firms stock in trade. Over the years, financial restructuring and mid-market M&A have become an equally important part of the firms arsenal. In 2007, the firm was the No. 1 mergers and acquisitions advisor for U.S. deals under $1.25 billion, and M&A Advisor again named Houlihan Lokey the Investment Banking Firm of the Year in the middle-market sector. In addition, the firm also nabbed one Dealmaker of the Year and three Deal of the Year awards from M&A Advisor in 2007. The firm was also the No. 1 M&A fairness opinion advisor in 2007, according to Thomson Financial (now Thomson Reuters), and named the No. 1 restructuring investment banking firm by Bankruptcy Insider. Houlihan Lokey employs 800 people in 14 offices in the U.S., Europe and Asia, serving over 1,000 clients ranging from some of the largest corporations in the world to small, closely held companies.
Houlihan Lokeys financing division, like its M&A group, is focused on mid-market companies. The firm has raised over $7 billion of private capital for its clients in the past six years. Finally, in the M&A division, Houlihan Lokey offers services by industry sector. It also arranges financing and has special capabilities in distressed M&A situations.
Energetic acquisition
Houlihan Lokey continued to advance its industry-focused platform in May 2007, this time in the energy sector. The firm acquired Baxter Energy Partners, a New York-based, energy M&A advisory boutique. Baxter Energy Partners has longstanding relationships in the energy sector and has in depth industry experience spanning the majors, large-cap E&P and downstream sectors. As part of the acquisition, Scott Baxter, founder and managing partner of Baxter Energy Partners, joined Houlihan Lokey
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as a managing director in corporate finance. Baxter now heads global energy investment banking for the firm, focusing on companies engaged in oil and gas exploration and production, transportation, service, refining and marketing. We are committed to finding meaningful ways to expand our industry coverage and grow our business, said co-chairman Hotz. Scott has successfully advised energy companies and executed a number of large-scale energy transactions, and has built a reputation as a trusted advisor to CEOs in the energy sector. This proven commitment to building relationships and finding ways to best service clients complements our structure and we are pleased to add this energy component to our existing platform.
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firm advised on 123 deals worth a total of $38.7 billion. In U.S. completed M&A, the firm was also number No. 17, down two from its 2006 ranking. Houlihan Lokey closed 132 deals worth a total of $62.6 billion. Houlihan Lokey has been involved in a number of big deals in the recent past. In October 2007, the firm wrapped up advisory work on Sequa Corporations acquisition of Chesapeake Finished Metals, a deal which had been ongoing since January 2007. Also in October, Houlihan Lokey advised on the sale of PCORE Electric Company to Hubbell Incorporated. Houlihan Lokey was part of a big-name deal in August 2007, when it served as the exclusive advisor to Movielink on its sale to Blockbuster. Houlihan Lokeys experience on the Movielink-Blockbuster deal may have been a contributing factor in Sony Pictures October 2007 decision to hire the firm to assess the possible sale of portions of its animation-studio and digital visual-effects divisions. At the time, The New York Times reported, An outright sale of both, which is possible, could bring around $500 million, according to people involved in the discussions. All told, Sony has invested more than $400 million in the animation and effects businesses over the years.
GETTING HIRED
Keeping it tight-knit
Houlihan Lokey is a relatively small firm without a lot of annual openings. So, its selective, you say? Yes, indeedin fact, the firm tends to hire only those with applicable work experience and then only chooses very well-qualified candidates willing to invest in their future. Insiders even tell of Houlihan becoming increasingly selective over the years and how the firm requires everyone to be able to contribute at a high level. And because the firm was built on its very strong reputation as a financially technical firm, candidates tend to be strong technically, good communicators and have a well-rounded personality. Even though the selection process varies by group, many groups in regional offices are difficult to penetrate. And because Houlihan has a short training program, it tends to hire those with applicable work experience. Bottom line: Houlihan looks for well-rounded individuals that are dynamic, quick learners, hard working and self-starters. Plus, Houlihan is a highly technical shopso knowing all the valuation, modeling and other financial analytical tools is a given. We recruit the brightest individuals, but also consider the candidate knowing that on a deal we may have to sit across from them in a conference room for 24 hours straight. The firm also looks for extremely proactive individuals who are comfortable taking on a lot of responsibility early in their career. Though deal teams tend to be smaller compared to some of the larger bulge bracket banks, this enables junior professionals to be involved in all aspects of the deal process.
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Ramp it up
Just dont turn off the charm once you get called in for an interview. The firm has a thorough interview process for limited spots. There are typically two rounds of interviewsyou meet with one individual in the first round and then three to four interviews in the second round. Interviews focus on financial knowledge and fit/personality, especially since relatively few are hired on an annual basis. The interview process can also include a written exam. Expect that interviewers will ask a wide range of questions and draw out conversation on topics such as discrete valuation principals to macro/microeconomic events impacting the market, so candidates should be prepared for engaging discussions about more than their resume.
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And though it is not a prerequisite, Houlihan tends to hire employees with a background or educational concentration in business, finance, or an analytical major such an economics, math, physics, etc. One insider reports going through first-round interviews on campus and second-round interviews at the respective office of interest. During second rounds, expect four to six interviews with associates, VPs and MDs who will ask everything from how a candidate believes they are able to contribute from day one to integrated accounting questions related to fund flows across financial statements. Either way, Houlihans recruiting efforts are extremely coordinated and well-managed.
Thumbs up
Insiders give the firm some serious props, calling the firm phenomenal, collegial, down-to-earth, entrepreneurial, challenging, open and relaxedbut also high-energy and aggressively working hard. Overall, the firm is tremendous to work for and it treats employees the right wayas a result, not many people leave. Working at Houlihan feels like living in a small town as opposed to a big city, says one source. Another says, We are all on a first-name basis, all considered important to the firm mission and all empowered. How so? Well, through the firm e-mail suggestion box and an open line to the CEOs, for one. There, employees can comment on any element of firm operations or strategy, and get a guaranteed answer from the CEO. Others call the atmosphere very hardworking but rewarding due to the high deal flow that we have. The culture is also very supportive because our goal is to make everyone as successful as possible. Another insider adds that we are unrivaled in our approach to investment banking. The firm is meritocratic by encouraging the notion that you can have as much responsibility as you can handle.
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One insider frankly says that not being a bulge bracket, we operate with a chip on our shoulder and always seek to upstage the industry giants. But Houlihan is also not pretentious and full of normal, passionate, entrepreneurial people with a passion for our jobs.
Learn as you go
But then again, Houlihan Lokey is not a place to work if you expect a rigid hierarchy and formal training. Our analyst/associate training program is three weeks long, notes an insider. New hires are thrown into the fire and expected to perform at a high level from day one. My foot has not come off the gas pedal since I started over eight months ago, and I wouldnt have it any other way. And theres also little anonymity here, which is beneficial because ones work product gets the creditor lack thereofthat it deserves, but perhaps more importantly, it fosters a sense of community and teamwork that I think is hard to find at a big bank. For the most part, the firm allows you to direct your career in any way you see fit, so long as you are being productive at the same time. Management is amazing and insiders report they are consistently shown that [they] are cared about and an integral part of the growth of the firm. I wouldnt know half of what I know now if it hadnt been for my many more experienced colleagues, from analyst to MD, who have taken the time to explain the seemingly infinite facets, big and small, that make up so much of this discipline, admits one insider. Houlihan also cares about your growth as an employee, insiders say. During my time here, I have learned a tremendous amount about banking and about being a banking professional, because Ive benefited from being involved on my deals in a capacity few bankers at my level in other firms are, says one contact. Its not because Im a rock star bankerIm notits because one of the main tenets of our firms philosophy is to train bankers for the next position they will hopefully get promoted to. The firm also takes care to be inclusive of new workers. As an analyst, I was included in meetings, both in and out of house, whenever possible, one respondent says. On several occasions, I was the sole member of the team traveling for a deal, and it always felt great to be trusted to represent Houlihan at such a junior level.
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And theres a sense of camaraderie throughout the firm as well. I have made real friendships at this bank with contemporaries and my bosses, friendships that wont end when I or they leave, says one insider. As far as professional courtesy goes, I have never once been yelled at in my four years here, nor have I been made to feel belittled in any way by any of the people I work for. Its just not what we do here.
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Its a trade-off
Then again, maybe employees tolerate the hours because compensation and perks make up for it. Theres the standard perks including car service after a certain hour and meal allowances, but theres also strong bonuses, a secure environment (were not cutting people like the other investment banks, adds one insider), discounted gym memberships, free New York MetroCards, and fun perks such as sodas, juice, breakfast on Friday and filtered waterwere environmentally conscious and do not use bottled water to not waste plastic per our co-CEO. Officers within the firm also have the option to purchase stock. As for compensation, be prepared to prove yourself. Top performers will always get top dollar, admits one insider. But funds like the company 401(k) help make up for it. Participation in the 401(k) program, which matches 50 percent of the first $1,000 contributed and 25 percent of next $2,500 is good. The dress code also gets high marks from insiders, which mostly adheres to a business casual vibe, although officers tend to wear ties more often than not. Theres also a jeans Friday during the summers that insiders believe is great. One high-ranking insider who leans toward the very casual says, I try to let people emulate my style to the extent they feel comfortable doing so, adding, I think people work better when theyre comfortable, and our dress code embodies that. In some locations, Levis seem to be the code. The dress code in the Minneapolis office is unique, reports one insider. Were allowed to wear jeans most of the time. Its a wonderful perk. Still, for all offices, when client contact is involved, business formal dress is required. Dress seems to match the office space, which insiders say is extremely nice but not over the top. We upgraded our offices in the last few years and clients are impressed when they visit, says one insider. And in some locations, associates and above
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have officeswhich could be furnished with wraparound desks and lots of file space. Though offices arent ultraluxurious, cubicles for analysts are more than spacious and we get large monitorsor two monitors if we want. But before you get those accoutrements, youll need to get trained up in the ways of Houlihan. A first-year analyst will have two weeks of training in New York, although a bulk of the training occurs on the job. Insiders seem to enjoy this feet-to-thefire approach, however, calling it effective, efficient and valuable. Generally, employees get frequent, on-the-job training in which superiors are always ready to make the effort to ensure that you understand issues thoroughly. As for the formal training, its focused primarily on how the firm approaches specific situations such as valuation methodologies, integrated cash flow modeling, etc. For the most part, though, informal training occurs every dayand this is why I think Houlihan Lokey is so successful. One insider even makes a Goldilocks and the Three Bears analogy, explaining that trainings not too long or too short, but just right.
to try and reach out to qualified people of diversity to attract, hire and retain them. The firm also makes sure the environment is a positive, accommodating one. We have a respectful culture and derogatory remarks with respect to race, religion or anything else arent appreciatedor tolerated, says one contact. Our firm treats everybody with the same dignity and respect that each human being deserves, adds another insider. With respect to gay and lesbian hiring, one source says, We think sexual orientation is a private manner, and we are officially and I believe practicallyblind to this issue. Our representation is very light, notes another. Then again, one respondent says, We have openly gay bankers, and no one thinks a thing about it. Another says, Houlihan is receptive and accepting of gays and lesbians, and sexual preference would not play into the decisions of hiring, promoting or mentoring.
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22
PRESTIGE RANKING
BUSINESSES
Global Markets Global Banking & Markets Global Transaction Services RBS Insurance Regional Markets Asia Retail & Commercial Banking Europe & Middle East Retail & Commercial Banking UK Retail & Commercial Banking US Retail & Commercial Banking
UPPER
Friendly and open, with an emphasis on teamwork
DOWNER
Big name overseas but lesser known in the US
THE STATS
Employer Type: Public Company Ticker Symbol: RBS (NYSE, LSE) Group CEO: Sir Frederick A. Goodwin Revenue: 33.4 billion (FYE 12/07) Net Income: 7.55 billion No. of Employees: 170,000 No. of Offices: 2,300
EMPLOYMENT CONTACT
www.rbs.com/careers
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great reputation Solid reputation in Europe; not sure of US activities Great culture, fun place to work Good bank; overpaid on acquisitions
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Vault Guide to the Top 50 Banking Employers 2009 Edition Royal Bank of Scotland
THE SCOOP
Growing fast
The Royal Bank of Scotland Group operates in more than 50 countries, providing approximately 40 million customers with retail and corporate banking, financial markets, consumer finance, insurance and wealth management services. The company boasts more than 100,000 employees in the U.K., 26,000 in the Americas and 170,000 worldwide. But not long ago, it had a lot fewer insiders. From 1998 to 2008, the firm expanded rapidly, growing its international staff from just 30,000. During that time, it also grew its annual income, which swelled from 3 billion to more than 30 billionthanks in part to the 29 acquisitions it made during the decade. In the U.S., RBS operates its commercial banking activity under the brand names Citizens and Charter One (Citizens acquired Charter One in 2004, a deal that added about 600 branches to its network). Citizens is certainly no newcomer to the U.S.its had a presence in New York, Houston, Chicago and Los Angeles since the 1960s. Today, it has operations in Connecticut, Delaware, Illinois, Indiana, Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania, Rhode Island, Vermont and Virginia. Further south, it maintains offices in the Bahamas, Bermuda and the Cayman Islands. RBS Asset Finance is the No. 8 bank lessor in America, with over $5 billion in assets. Citizens credit card arm, RBS Card Services, is headquartered in Bridgeport, Conn., and provides consumer and commercial credit cards nationwide. RBS Lynk, meanwhile, provides electronic payment processing services. In the U.S., RBSs global banking and markets group encompasses corporate banking, leveraged finance, project finance, loan and high-yield markets, as well as RBS Greenwich Capitalan institutional fixed-income firm that supplies corporate finance and debt capital markets services. In addition to the U.S., RBS has a presence in Argentina, Brazil, Chile, Columbia, Mexico and Uruguay in the Americas.
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credit market troubles. Previously, in December 2007, the bank announced 1.2 billion in mortgage-backed security and loan write-downs. Analysts said the results would likely not change the markets short-term perception of RBS. An analyst at Collins Stewart called the results okay, adding that risks remain. And an analyst at Hargreaves Lansdown Stockbrokers said, Bears of RBS will want to hear that the write-downs have finally been put to bed, which cannot yet be definitely confirmed. That analyst added, Further out, the market will want to understand the full earnings impact and synergies from the successful ABN AMRO acquisition.
GETTING HIRED
kind of benefits to expect. Outside of the U.K., RBS has graduate and internship opportunities in Frankfurt, Paris, Madrid and Milan. Candidates should have boundless energy and bags of enthusiasm, according to the firm, which also values fluency in a second European language and previous work experience.
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Add it up
It pays to look at the big picture when it comes to compensation, insiders report. They may not pay huge salaries like some other firms, but when the package is totaled up, it works out to be pretty competitive. And pension contributions are paid at 15 percent of base salaryI have not heard of many better offers than this, admits one respondent. On its web site, the firm also offers perks ranging from pet insurance to the option of buying or selling a week of allotted vacation during the banks annual benefits enrollment. There are few complaints when it comes to the dress code, too. Although attire is business casual in many areas, formal dress is only required if there is a meeting with a third party.
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VAULT TOP 50
23
PRESTIGE RANKING
767 Fifth Avenue New York, NY 10153 Phone: (212) 287-3200 Fax: (212) 287-3201 www.pwpartners.com
DEPARTMENTS
Asset Management Financial Advisory
EMPLOYMENT CONTACT
See careers section of www.pwpartners.com
THE STATS
Employer Type: Private Company Chairman & CEO: Joseph Perella No. of Employees: 220 No. of Offices: 3
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
A bunch of superstars Strong name in M&A Lots of employees, not many assignments Up-and-coming, newcomer on the Street, perceived as smart money
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THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Perella Weinberg Partners
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Vault Guide to the Top 50 Banking Employers 2009 Edition Perella Weinberg Partners
By June 2007, Perella Weinberg had landed another big assignment, to advise London-based GLG Partners, one of the largest hedge funds in Europe, on its public offering on the New York Stock Exchange, a deal valued at $3.4 billion. That same month, Perella Weinberg acted as sole advisor to Antalis, a subsidiary of Sequana Capital, on its proposed acquisition of Map Merchant Group, the paper merchanting division of M-real. The deal, worth $520 million, would create the leading paper distribution company in Europe. Later that summer, in August, Perella Weinberg acted as exclusive advisor to The Lamson & Sessions Co., on its review of strategic alternatives and proposed sale to Thomas & Betts Corp. In December 2007, Perella Weinberg was sole advisor to International SOS, a provider of medical assistance services to multinational corporations, in relation to its capital reorganization, through which Cobepa acquired an 18 percent stake and a group of minority financial shareholders sold their position. That same month, the firm was sole advisor to Deutsche Lufthansa on its $310 million acquisition of a minority equity interest in JetBlue Airways. Perella Weinberg also worked for Olympus Corporation on its proposed $2.1 billion acquisition of medical device company Gyrus Group.
In June 2008, Perella Weinberg Partners took on an advising role for France Telecom regarding the prospect of taking over Sweden-based phone company TeliaSonera. If the deal goes through Perella Weinberg would become one of the biggest advisers in the industryTeliaSonera is worth in the neighborhood of $40 billion. So far, the biggest deal Perella Weinberg has advised since its creation in 2006 has been Thomson Financials $18 billion purchase of Reuters Group.
GETTING HIRED
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PRESTIGE RANKING
520 Madison Avenue, 12th Floor New York, NY 10022 Phone: (212) 284-2300 www.jefferies.com
BUSINESSES
Asset Management Investment Banking Private Client Services Research Sales & Trading
THE STATS
Employer Type: Public Company Ticker Symbol: JEF (NYSE) Chairman & CEO: Richard B. Handler Revenue: $2.718 billion (FYE 12/07) Net Income: $144 million No. of Employees: 2,400 No. of Offices: 25
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KEY COMPETITORS
FBR Capital Markets Houlihan Lokey Piper Jaffrey Companies UBS Investment Bank
UPPERS
Small deal teams equal greater responsibility Fantastic pay
DOWNERS
Lacks the name recognition of other firms Hours can be brutal
EMPLOYMENT CONTACT
www.jefferies.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Top-notch middle-market firm Small deals Rising star Growing brand but still far away from being a powerhouse
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THE SCOOP
Jefferies likes to call itself a firm of shareholders, and sure enough, almost every employee (or employee-partner) owns Jefferies stock. According to the firm, employee ownership has increased significantly since 2002, and Jefferies employees own approximately 40 percent of the firms equity.
M&A masters
In recent years, Jefferies has been named the Middle Market Investment Bank of the Year by Buyouts magazine as well as Investment Dealers Digest. And in 2007, according to the Thomson Financial (now Thomson Reuters), the firm continued to master the middle-market merger and acquisition market, ranking No. 5 based on imputed fees in worldwide announced M&A deals with values up to $50 million, $100 million and $200 million. For deals with values up to $500 million, the firm came in at No. 9. In U.S. deal making, based on number of transactions, Jefferies ranked No. 2 for deals with values up to $50 million, $100 million and $200 million, coming in behind Houlihan Lokey. For deals with values up to $500 million, Jefferies worked on 90 transactions with a total value of $7,065 millionenough to earn a third-place slot behind Houlihan Lokey and Credit Suisse. In addition, in 2007, Jefferies topped a number of other industry league tables, as it ranked No. 1 in technology M&A deals (for the third year in a row), energy deals (for the second consecutive year) and aerospace and defense M&A deals (for three years running). In the capital markets, the firm has ranked as the No. 1 high-yield underwriter of U.S. high-yield new issues valued at $150 million and under, for seven years running Some notable 2008 transactions include: advising Maven Networks in its $160 million acquisition by Yahoo!, acting as joint bookrunner on IPC the Hospitalist Companys $95 million IPO, serving as joint bookrunner on Genco Shipping & Tradings $282 million follow-on offering and advising Sony Pictures in its $286 million acquisition of 2Way Traffic.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Jefferies & Company
Acquiring minds
In 2007, Jefferies continued its streak of acquiring boutique firms as a way of enhancing its capabilities. It bought U.K.-based LongAcre Partners, a media and Internet M&A advisory firm, as well as the Putnam Lovell investment banking business from Canadas National Bank Financial Group. An advisor to the financial services industry, Putnam Lovell, was comprised of 21 bankers in New York, London and San Francisco, and its client list included Allianz, American Express, Bank of America, BNP Paribas, Deutsche Bank, Nuveen Investments, Prudential Financial and Royal Bank of Scotland. These acquisitions marked the fourth and fifth acquisitions, respectively, for Jefferies in less than five years. The firm also acquired a consumer-focused team in Charlotte, N.C. Jefferies hired Jim Walsh away from his post as head of the food industries investment banking group at Wachovia Securities to head its consumer activities. Within a few weeks of Walshs hire, Jefferies announced that it had added four senior investment bankers to the consumer and retail team, and by the end of 2007, it had more than 20 professionals in its consumer and retail practice in Charlotte and New York.
In the past two years, Jefferies has established offices in Frankfurt, Dubai, Singapore, New Delhi and Shanghai, and in November 2007, it consolidated its various London offices into one centralized location.
No subprime here
The firm hasnt had an unprofitable year in nearly three decades. Although Jefferies took a net loss of $24 million for the fourth quarter of 2007, it still eked out an eighth year of record net revenue, and reported profits of $144 million for the year. The downturn in the last quarter was caused by difficult market conditions and poor results in the firms high-yield and asset management businesses, plus a number of postponed deals for the investment banking division. On the upside, Jefferies had no major write-offs and no exposure to the devastated subprime loan market, unlike many of its competitors. Still, Richard Handler, chairman and CEO, reassured investors and employees that the firm had taken immediate and decisive action in the wake of the fourth quarter earnings report. In addition to cutting operating expenses, Handler announced that he and executive committee chair Brian Friedman would forgo their own bonuses for 2007. Handler and Friedman also instructed the compensation committee to reduce their future compensation by $13 million and $6.5 million, respectivelythe value of their 2007 restricted stock awards. If we are asking our shareholders to make this investment for the long-term success of Jefferies, we should put our money where our mouth is and pay our fair share, Handler said.
GETTING HIRED
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in general finance and some understanding of banking principles. The firms competitive position does require that we be more accommodating in hiring, but the doesnt mean a free ride. One contact recalls, When I was interviewing for the summer associate position, we ultimately had five summer associates out of a total candidate pool of about 100 to 200. The firms recruiters look for future stars at top-tier undergraduate and graduate institutions in the U.S. and Europe. Undergrad favorites include Boston College, Bowdoin, Columbia, Harvard, Michigan, NYU, UPenn, Princeton, University of Texas, UVA, Berkeley, UCLA and USC. Outside the U.S., Jefferies recruits at Oxford and Cambridge. For business schools, Jefferies looks to Columbia, Darden, Fuqua, HBS, Kellogg, Sloan, Stern, University of Chicago, Wharton, Yale, Haas, and Anderson.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Jefferies & Company
The firms culture also gets high marks for being collegial and fun. The work environment in terms of co-workers and office quality are all outstanding. The firm is filled with great people without the banker attitudes, and everyone has a very team-oriented approach to accomplishing goals. Because its a small firm, people get to know each other very well and get along very well. Sources say that compared to other investment banks, Jefferies is more collegiate, a place where people choose to hang out outside of the office. And theres lots of different types of people to pick from. According to one source, Weve got Russian majors, guys that have traveled around the world and lived in foreign countries, fraternity men, a former master yoga instructor and even a kid that used to be a performing magician while he was at Wharton. Card trickster or not, people are very supportive at this relaxed and entrepreneurial firm. The firm has experienced some growing pains lately, as it is searching for the optimal size to operate at in order to keep its competitive advantage. Some say the strong culture of bonding and friendship has eroded as the firm has grown in size Jefferies is certainly no boutique. But overall, the culture is still much more amiable than that of a bulge bracket firm.
High standards
Jefferies managers have open-door policies and are happy to discuss anything that arises for a junior banker, work-related or personal in nature. They also tend to be understanding about life outside of the office. Most senior bankers have great respect for everyone and treat all people equally. They constantly seek feedback and make an effort to develop junior investment bankers. Some say the firms senior bankers can be very demanding with an intense focus on getting the job done. Certain managers have unrealistic expectations, which can be stressful. Generally speaking, though, managers try to be aware of the big picture to ensure that junior bankers are not overloaded. They also make an effort to make sure you are in the loop, and often ask for opinions from analysts on up the food chain. Junior employees are held to high standards, but treated very well.
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PRESTIGE RANKING
Evercore Partners
RANKING RECAP
Quality of Life #1 Selectivity #2 Compensation #3 Treatment by Managers #4 Offices #6 Overall Satisfaction #12 Best Employers to Work For Diversity #12 Diversity with Respect to Minorities #14 Overall Diversity #20 Diversity with Respect to Women
55 East 52nd Street, 43rd Floor New York, NY 10055 Phone: (212) 857-3100 Fax: (212) 857-3101 www.evercore.com
DEPARTMENTS
Advisory Services Investment Management
THE STATS
Employer Type: Public Company Ticker Symbol: EVR (NYSE) CEO: Roger C. Altman Revenue: $340.05 million (FYE 12/07) Net Income: $51.4 million* No. of Employees: 294 No. of Offices: 5 *Adjusted Pro Forma Net Income
KEY COMPETITORS
Goldman Sachs Greenhill & Co. Morgan Stanley Perella Weinberg Partners
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UPPERS
Higher compensation than peers Exposure to senior-level bankers Low level of bureaucracy
DOWNERS
Lack of brand recognition Hours can be brutal No formal diversity programs
EMPLOYEMENT CONTACT
See careers under contact us section of www.evercore.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong M&A practice Fine Great name, superior team Not well known
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THE SCOOP
Public debut
Created in 1996 by former Blackstone veterans Roger Altman and Austin Beutner, Evercore Partners is an investment banking boutique that limits itself to two lines of business: advisory services and investment management. After 10 years as a private firm, Evercore went public in August 2006 with an $82.9 million initial public offering. In its first year in the public eye, the firm produced solid results: revenue increased 47 percent in 2006, to $216.4 million from $146.3 million in 2005. Net income rose an astonishing 80 percent, from $22.4 million in 2005 to $40.5 million in 2006. In 2007, given a vesting event related to the firms secondary offering, the firm booked a net loss $34.5 million despite record annual revenue of $340 million. Adjusting for the accounting loss resulting from the vesting event, though, net income totaled $51.4 million for the year. Evercore operates from offices in New York, San Francisco, London, Mexico City and Monterrey.
Evercores investing business manages over $1.2 billion funded by U.S. and international investors, including corporate and public pension funds, foundations, trusts, banks, endowments, insurance companies and families. This business is divided between two private equity funds (Evercore Capital Partners I and Evercore Partners II), the Evercore Ventures venture capital fund, Evercore Asset Management and Protego Asesores, a Mexican private equity joint venture with Discovery Capital Partners. Cornerstones of Evercores private equity portfolios include American Media, Inc. (publisher of Shape, Fitness, and the National Enquirer), Balkrishna Industries (a Mumbai-based tire manufacturer) and Sedgwick CMS, a Tennessee claims management outsourcer.
Brave acquisition
At the end of 2006, Evercore celebrated the completion of its acquisition of Braveheart Financial Services, a U.K. boutique financial advisory and investment management firm. Under the terms of the deal, Braveheart partners Bernard Taylor and Julian Oakley will operate a London office under the Evercore name. They also became Evercore managing directors, and Taylor (a former JP Morgan vice chairman) became a co-vice chairman at Evercore. Evercores chairman, Roger Altman, said in a statement that he had a long term goal to achieve the same market leading position in Europe, among boutique advisory and investing firms, which we have achieved in the United States. He added, We are optimistic on achieving this. His optimism may be well founded: From 2004 to 2006, Evercore advised on four of Europes biggest M&A deals. These include advising VNU on its $11.6 billion sale to a private equity consortium; Credit Suisse on the $9.9 billion sale of its Winterthur insurance arm to AXA; Swiss Re on its $7.8 billion acquisition of General Electrics Insurance Solutions business; and NTL on its $8.8 billion acquisition of Telewest Global.
Proving itself
In 2007, Evercores first full year as a public firm, the advisory practice continued to keep busy, closing or announcing several large M&A transactions. The firm advised Novelis on its $5.7 billion sale to Hindalco, Aquila on its $2.7 billion sale to Great Plains Energy, CVS on its $28.1 billion all-stock acquisition of Caremark, Realogy on its $6.9 billion leveraged buyout by Apollo
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Vault Guide to the Top 50 Banking Employers 2009 Edition Evercore Partners
Management, First Data Corp. in its $29 billion buyout by KKR, and Apax in its $7.8 billion acquisition of Thomson Learning. In September, Evercore advised BlueLithium on its $300 million sale to Yahoo! and Network General Corporation on its $205 million sale to NetScout Systems. In November, Evercore advised Gedeon Ricther Plc on its whopping $1.3 billion acquisition of Polpharma. Still, some analysts have sounded a note of caution about Evercores successes, noting that the bulk of the firms advisory revenue comes from a relatively small number of clients, which could threaten earnings if those clients dont do enough business. Evercore finished strong in 2007, however, and came up with a respectable position on the M&A league tables. According to Thomson Financial (now Thomson Reuters), the firm ranked No. 12 in U.S.-announced M&A, advising on 40 deals worth a total of $111.3 billion. Evercore also was No. 12 in U.S. completed M&A, with 35 deals worth $131 billion. The firm came in at No. 12 in both categories in 2006 as well.
Other major U.S. hires in 2007 included three senior managing directors: Stephen Schaible, a former Citigroup managing director who will work out of Evercores New York ofice; Francois Maisonrouge, who worked most recently as an MD at Credit Suisse and also joined Evercores New York office; and Mark Vander Ploeg, who joined the San Francisco outpost and most recently was vice chairman of investment banking at Merrill Lynch.
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unphased, noting that many of Evercores clients are companies rather than private equity firms. At the Lehman conference, Altman said 35 of Evercores top 40 clients in 2006, as ranked by fees, were corporations, opposed to financial firms. However, Altmans seeming lack of concern may be because he has a trick up his sleeve: restructuring. Reporting on the conference, The New York Times noted, During the last bankruptcy boom, Evercore earned big fees advising bankrupt companies and their creditors Altman seems to be bracing for more such work, telling attendees at the Lehman conference that he expects Evercores restructuring group to jump from eight professionals now to 16 in the next year.
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Evercore Partners
Evercore bankers enjoy higher compensation than peers. Almost unanimously, insiders give high marks to their pay packages, which in addition to salaries, include a number of perks. Bankers enjoy a generous meal allowance of $30 for dinner during the week and $50 on weekends. Theres also a stocked kitchen with fruit, drinks, bottled water, and other snacks. To top it off, free breakfast is provided every morning. Evercore also offers generous travel and expense policies, as well as discounts on gym memberships and car service to and from work after 9 p.m. and on the weekends.
On-the-job learning
At Evercore, analysts and associates work closely with senior partners on a daily basis. This can be stressful, but also provides an opportunity to learn more and get the proper recognition for your hard work. Analysts and associates are treated with a great deal of respect, especially from the partners. Many subordinates build real, in-depth relationships with their managers. At times, this collegial environment can lead to inefficiencies. But generally speaking, managers recognize that banking can be difficult for junior employees and are willing to help. Its a good thing Evercores managers are so willing to help, because training is pretty much 100 percent on the job. New employees are expected to come to Evercore already knowing your accounting and finance. The firm requires self-starters
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who will be content with two weeks of DealMaven training. Fortunately, people understand there is a learning curve and are extremely helpful when you first start. But regardless, incomers should be prepared for a learn-as-you-go environment.
No Herms required
The dress code at Evercore is somewhere between business casual and business formal, unless youre meeting with a client, in which case its always formal. On regular days, some people wear ties everyday, some dont. Although some people like coming in suits and ties, insiders say Evercore is not like Lazard, where everyone wears identical Herms ties and silver monogrammed belt buckles. A contact says, People here really dress differently and however they want to. In fact, one of the partners doesnt even own a tie.
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26
PRESTIGE RANKING
600 Renaissance Center, Suite 900 Detroit, MI 48243-1704 Phone: (313) 396-3000 Fax: (313) 396-3618 www.investmentbanking.deloitte.com
BUSINESSES
Acquisitions, Joint Ventures & Alliances Capital Raising Corporate Development Advisory Sales and Divestitures
DOWNER
Most people do not have time to take the full three weeks [of vacation] off
www.careers.deloitte.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong, great place to start off, competitive Not the same experience as pure play investment bank Addresses niche part of the market I-bank wannabes
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Vault Guide to the Top 50 Banking Employers 2009 Edition Deloitte & Touche Corporate Finance LLC
THE SCOOP
Well connected
Heres a roadmap to locating Deloitte & Touche Corporate Finance (DTCF) within its sprawling parents structure. DTCF is a wholly owned subsidiary of Deloitte Financial Advisory Services (Deloitte FAS), which is in turn a subsidiary of Deloitte & Touche USA. Thats the American member firm of Deloitte Touche Tohmatsu (DTT), a global accounting and consulting network with operations in over 140 countries. The U.S. member firm has offices in 80 cities nationwide. Other units of Deloitte FAS are Valuation Services, Reorganization Services and Forensic and Dispute Services. Although Deloitte is a giantits not called the Big Four for nothingDTCF operates as a boutique within the conglomerate. At the same time, DTCF can draw on Deloittes extensive resources, including Deloitte Tax, Deloitte Consulting, Deloitte FAS and the Chinese Services Group of Deloitte & Touche USA (which assists on China-related cross-border deals). DTCF national managing director Bob Coury also holds the position of principal at Deloitte & Touche, and sits on the Deloitte FAS executive committee. There are four DTCF offices in the U.S. (Detroit headquarters, plus New York, Chicago and Los Angeles). In addition, DTCF is connected to the corporate finance practices of Deloitte member firms worldwide.
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A long history
The Deloitte behemoth was born in 1849, when Great Western Railway, a British joint stock firm, hired local accountant William Welch Deloitte to conduct an audit of its business. This was a novel idea at the time, but soon other public companies followed Great Westerns lead. George A. Touche opened his own audit and accounting firm in London in 1898, moving his office to New York two years later. There, Touche and partner John Niven built up their business, taking advantage of Americas new business regulations and income tax laws. By the end of the 1960s, Touche, Niven became Touche Ross, and William Deloittes eponymous firm was operating as Deloitte Haskins Sells. The two firms merged in 1989, creating Deloitte & Touche, a full-service firm that offered consulting and advisory as well as accounting services. In 1993, Deloitte & Touche realigned itself as a Swiss verein, a membership organization in which each member firm operates as a separate, independent legal entity. Deloitte Touche Tohmatsu (DTT) became the international umbrella name for Deloitte member firms around the worlda nod to Tohmatsu & Company, which had become part of Touche Ross in 1975.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Deloitte & Touche Corporate Finance LLC
Ohio, Amtex was formed in 1983 as a joint venture between Hayashi and Masland Corporation; Masland was subsequently acquired by Lear Corporation in 1996. After the 2007 deal closed, Amtex became a wholly owned subsidiary of Hayashi. DTCF worked on more deals in fall 2007, advising JJ Haines and Company, one of Americas oldest and largest floor covering distributors, on its acquisition of fellow flooring wholesaler Wheeler, Inc. in September. In the same month, DTCF served as exclusive financial advisor to VECO in its sale to global engineering corporation CH2M Hill. VECO, an Alaskan oil pipeline service and construction company, was valued at $463 million. Finally, in the last weeks of 2007, DTCF advised Kraft Foods on the sale of its Fruit20 water and Veryfine juice brands to Sunny Delight Beverage Company, a subsidiary of J.W. Childs Associates. For the six months ended December 31, 2007, DTCF ranked No. 3 in global middle-market investment banking services in terms of deal volume, just behind KPMG Corporate Finance and PricewaterhouseCoopers. According to Thomson Financial (now Thomson Reuters), in the second half of the year, DTCF worked on 238 deals worth a total of $6.12 billion.
Workplace kudos
Deloittes U.S. member firm picked up some awards in 2007, ranking No. 1 on BusinessWeeks annual Best Place to Launch a Career list (a two-place improvement on Deloittes 2006 ranking at No. 3). Working Mother magazine also named Deloitte one of 2007s Best Companies for Multicultural Women, recognizing the firm for its leadership training programs and for increasing multicultural hiring by 16 percent since 2003. Speaking of leadership, Deloitte Touche Tohmatsu tapped a new CEO in June 2007. The global firms longtime leader, William G. Parrett, stepped down and was replaced by James Quigley, head of the U.S. member firm. Parrett remains with Deloitte as a senior partner, but will retire from the firm in May 2008.
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GETTING HIRED
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And the firm offers internship opportunities, too. Getting into the firm that way definitely gives you an opportunity to make a favorable impression and increase your chances of getting hired, although the same rigorous criteria applies to our intern candidates as does our regular full-time recruits.
Support network
Insider report that the firms culture has many high achievers but is also congenial, cooperative, respectful and fun. I enjoy spending time with the people I work with both inside and outside of work. Managers get high marks from employees as well. I have a great team that includes great, supportive and respectful management. One contact says we work hard, but we are always willing to assist each other. Hours, which tend to run about 50 to 60 per week, are very flexible, although its not uncommon to make a weekend office visit. But one respondent says its not bad overallI often only go to the office and/or to visit clients two or three days a week and work from home other times. (When youre in the office, business casual is typically the code of the land.) And despite the fact that weekend work takes place, its out of choice and its not a requirement. One contact admits that the more you work and the less of an outside life you have, the more likely you are to advance, adding that its a trade-off at the expense of your work/life balance. Though theres three weeks of vacation offered to help maintain that balance, insiders say that most people do not have time to take the full three weeks off. Then again, the holiday parties are great, so if you can stomach dealing with little time off for the rest of the year, maybe its worth it to suck it up and stick it out if youre hankering for a big shebang.
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PRESTIGE RANKING
800 Nicollet Mall, Suite 800 Minneapolis, MN 55402-7020 Phone: (612) 303-6000 Fax: (612) 303-8199 www.piperjaffray.com
DEPARTMENTS
Asset Management Institutional Investing and Research Investment Banking
UPPERS
Entrepreneurial and lean, with a flat organizational structure Prefers organic growth rather than hiring from the outside, so advancement can be quick
THE STATS
Employer Type: Public Company Stock Symbol: PJC (NYSE) Chairman and CEO: Andrew S. Duff Revenue: $498.9 million (FYE 12/07) Net Income: $45 million No. of Employees: 1,225 No. of Offices: 29
DOWNERS
Very long hours in investment banking Not everyone will be feeling Minnesota
EMPLOYMENT CONTACT
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Best in class for its size Lost in Minnesota Very strong in health care banking Third-tier type bank
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THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Piper Jaffray Companies
team will continue to manage the business under the leadership of CEO Charles Walbrandt, who will report to Duff. FAMCO has approximately 50 employees and its headquarters will remain in St. Louis, Mo.
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Investing in I-banking
Part of Piper Jaffrays rationale for selling its private client business was to put the proceeds toward strengthening its investment banking business. In 2006, the firm increased its investment banking staff by 41 percent, bringing the headcount to 137. In January 2007, it began its investment bank expansion by hiring a new co-head of the health care IB team. Stuart Duty, a former partner and COO of Oracle Investment Management, is now leading Piper Jaffrays biotechnology sector work from its New York office. And in February 2007, Piper promoted from within, naming Murray Huneke, a five-year firm veteran, as co-head of investment banking. Huneke had been co-head of consumer investment banking. He is still in that role, but now is also charged with growing the firms West Coast investment banking business, which includes technology and alternative energy. Based in Palo Alto, Huneke reports to Jon Salveson, the other co-head of investment banking. Later in 2007, in May, Piper Jaffray hired David Castagna as a managing director and co-head of the technology investment banking team. Castagnawho joined from Cowen and Company, where he was head of the technology, media and telecom investment banking groupworks in Pipers Palo Alto office with Chris McCabe, the other co-head of technology investment banking. Before Cowen, Castagna was head of technology investment banking at Thomas Weisel Partners. The hiring continued into early 2008, when Piper poached Michael Brinkman from CIBC World Markets, where he was head of biotechnology investment banking. Brinkman was hired as a managing director in the health care group, focusing on biopharmaceutical companies. He will be based in the Palo Alto office and joins a team that has helped Piper Jaffray become one of the most active underwriters for growth companies in the health care industry globally.
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Other big firms such as Merrill Lynch, Citigroup, Bank of America and HSBC Holdings had expressed interest in buying a brokerage, but there was a big problemthere arent that many left to buy. Piper Jaffray, along with Raymond James Financial and Jeffries, is one of the few remaining midsized targets. Since, Piper has given no indication of losing its independence, and the big brokerages have all taken quite a dive due to the credit crisis, so Piper selling out is a highly unlikely scenario anytime soon.
Still smiling
Despite a 27 percent dip in profit for the fourth quarter of 2007, Piper Jaffray was still smiling, thanks to impressive advisory sales that beat analyst expectations. The firm reported net income of $15.1 million, down from $26.7 million for the same period in 2006. CEO Andrew Duff had his head up, however. Our equity financing, equity sales and trading, and advisory services reported very strong results, said Duff in an earnings statement. Although challenging capital markets conditions drove weaker results in high yield and structured products, our other businesses more than offset these lower revenues. For the full year 2007, Piper Jaffray earned $45 million, down from $62.9 million in profit in 2006. Net revenue was down as well, to $498.9 million, from $502.9 million in 2006. Despite challenging market conditions in the last half of 2007, Pipers investment banking revenue rose 2 percent from the previous year. Equity financing revenue also topped 2006, by 14 percent, and more than offset lower advisory services revenue and slightly lower debt financing revenue. Equity sales and trading revenue were essentially flat compared to 2006, while fixed income sales and trading revenue, which were impacted by the turmoil in the financial markets during the last half of the year, declined compared to 2006. Advisory services revenue for 2007 was $36.7 million, a 6 percent increase over 2006, thanks to an increase in merger and acquisitions activity in the U.S., and strong advisory services in Europe and Asia. Piper worked on 117 equity financings in 2007, raising a total of $17.5 billion in capital. The firm was bookrunner on 28 of those financings, of which 82 were U.S. public offerings, giving Piper a No. 15 ranking based on number of completed U.S. transactions, according to Dealogic. Piper Jaffray advised on 53 merger and acquisition transactions in 2007, with an aggregate enterprise value of $15.7 billion. It worked on 420 tax-exempt issues during the year, with a total par value of $6.8 billion. According to Thomson Financial (now Thomson Reuters), that gave Piper a No. 7 ranking in the U.S. for completed transactions. Commenting on Pipers year-end results, a Sandler ONeill & Partners analyst told Forbes, While advisory revenue [is] extremely lumpy from quarter to quarter, and the timing of a couple of large transactions can move the needle, it is hard to take away from such a strong number, especially since the last few quarters have been tough from a mergers and acquisitions perspective at Piper Jaffray.
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GETTING HIRED
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When it comes to the interview process, remember that patience is a virtue (if you want a shot at getting hired, that is). Some insiders report that most people interview with at least 10 people before receiving an offer. Expect a first-round campus interview, a second round of Super Day interviews and a third team-specific interview. Questions tend to be behavioralbased. Internships are also offered by the firm and are very important to get your foot in the doorbut beware, competition from the outside is fierce. Over half of the people we hire in any given year did not intern with us previously.
time with colleagues outside of the office. You will rarely be recognized for your work, grumbles another, even while saying that you can expect to receive a good experience if you can make a lot out of your time. Weekend work tends to happen often, insiders say. Investment banking at Piper can be a grueling experience, reports one insider, citing very long hours as one of the most strenuous aspects of the experience. However, hours at Piper are reportedly typical across the board, with average workweeks of 50 hours for traders, 60 to 80 hours for those in research, and 80 to 100 hours for investment bankers. As for the actual work, Piper Jaffray is unique because associates dont do any modeling; analysts do all the modeling, reports one insider. Its great for an analyst, because you do all the models, including the complex ones. The dress code depends on the group. One insider says, The dress code is business, except on Fridays, when it changes to business casual. A financial analyst wears business casual clothing all through the week. The analyst also reveals a failed attempt to get particularly casual on Fridays: When a midlevel manager mentioned that some employees had inquired about reinstituting a jeans day on Fridays, he was told, If they want to wear jeans, tell them to work at a factory. And with regards to diversity, insiders comment that Piper, like Minnesota itself, is homogenous, with few minorities, though it is an open environment and the only criteria for advancement is hard work. However, says that I-banking contact, I think theyre very good with the male/female ratio. Theyre not 50/50 at the top, but they definitely have some strong women there.
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receive your bonus check, while Piper makes calls and figures out what they are willing to pay [based on information from other firms]. In addition to decent monetary compensation, Piper Jaffray offers its employees a host of benefits, including health insurance, life insurance, tuition reimbursement, a 401(k) plan with a dollar-for-dollar company match up to 6 percent of salary, a profitsharing plan, an employee matching gift program for charitable contributions and employee discounts on Piper Jaffray financial services. As for the outlook of the company, insiders have high confidence that the future looks pretty bright. Piper is strategically positioned very well as a leading, middle-market investment bank, says one insider. We are exceptionally strong in municipal finance, being one of the largest underwriters of municipal bonds in the country, and sources generally feel very confident in the firms future.
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PRESTIGE RANKING
Wells Fargo
RANKING RECAP
Quality of Life #1 Hours #9 Best Employers to Work For #11 Training #14 Offices #14 Overall Satisfaction #14 Compensation #17 Treatment by Managers #20 Selectivity Diversity #2 Diversity with Respect to GLBT #2 Overall Diversity #4 Diversity with Respect to Women #5 Diversity with Respect to Minorities
420 Montgomery Street San Francisco, CA 94163 Phone: (866) 249-3302 www.wellsfargo.com
BUSINESSES
Community Banking Home & Consumer Finance Wholesale Banking
THE STATS
Employer Type: Public Company Ticker Symbol: WFC (NYSE) Chairman: Richard M. Kovacevich CEO & President: John Stumpf Revenue: $34.45 billion (FYE 12/07) Net Income: $8.1 billion No. of Employees: 160,000 No. of Offices: 6,000 (branches)
KEY COMPETITORS
Bank of America U.S. Bancorp Washington Mutual
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UPPERS
Reasonable hours Fantastic training Diversity is a priority
DOWNERS
Bureaucracy No frills offices Conservative culture
EMPLOYMENT CONTACT
www.wellsfargo.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
The model bank for all others: their branches look great, and they have excellent leadership and good market coverage Conservative Up-and-coming; have been gaining some ground and opening up offices everywhere Good regional bank
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THE SCOOP
In 2007in a decision no doubt fueled by the subprime mortgage crisisWells Fargo Home Mortgage decided to close its nonprime wholesale lending business that processes loans for third-party mortgage brokers. In a statement, Wells Fargo said that in 2006, the wholesale lending business accounted for 1.6 percent of its total residential mortgage loan volume of $397.6 billion. The closure led to 170 layoffs in Baton Rouge, La., and 67 employees in Des Moines, Iowa. The company said it was doing its best to place those affected into other positions at the company. Wells Fargo also noted that it will continue to offer nonprime loans in channels where it has direct relationships with consumers, including Wells Fargo Home Mortgages retail channel and Wells Fargo Financial.
Wagons west
Henry Wells and William Fargo founded Wells, Fargo & Co. in 1852 during the Wests gold rush. Their firm offered banking services (buying gold assets and selling paper bank notes in exchange for gold) and secure express delivery of gold, notes and other valuable assets. From its office in San Francisco, Wells Fargo grew to include offices in other Western mining towns. In the 1860s, it sealed its reputation for trustworthiness by opening its famous stagecoach line, which made trips through the thenWild West to ensure delivery across the country. In 1861, it took over the routes of the short-lived Pony Express. In 1918, Wells Fargos network was commandeered by the American government as part of its World War I efforts, leaving the bank with just one location in San Francisco. Wells Fargo rebuilt in the 20th century, becoming a regional bank in northern California and operating in San Francisco as a bankers bank for the region. By the 1980s, Wells Fargo was a major presence in California and the seventh-largest bank in the nation. In the 1990s it returned to the rest of the country, opening locations throughout the West, Midwest and some Eastern states.
Buy side
Known for its rapid acquisitions, the bank made several big buys in 2006 and 2007. These included the Los Angeles-based private investment bank Barrington Associates, which provides mid-market sell-side M&A advisory and corporate finance
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services. Barrington will continue to operate under its own name as a division of Wells Fargo Securities, a Wells Fargo non-bank subsidiary under the wholesale banking umbrella. Other additions to the Wells Fargo family in 2006 were commercial real estate investment advisor Secured Capital Corp., multifamily real estate finance firm Reilly Mortgage, accounts receivable purchaser Commerce Funding and middle-market factoring firm Evergreen Funding. In January 2007, Wells Fargo announced that it would acquire Placer Sierra Bancshares in a stock-for-stock merger. Placer Sierra Bancshares is the Northern California-based holding company for Placer Sierra Bank, which serves individuals and small- and midsized businesses. It has $2.6 billion in assets, plus 32 branches in Northern California and 18 in Southern California. Also in Northern California, the Greater Bay Bancorp was snatched up by Wells Fargo in May 2007 in another stock-for-stock merger. Greater Bay Bancorp, which owns several banks in the San Francisco area, has more than 1,800 employees and $7.4 billion in assets.
New leader
Leadership changed at Wells Fargo in 2007 when John Stumpf, former COO, took over as CEO of the company. Former CEO Richard Kovacevich had planned to relinquish his chief duties sometime in 2008, but in June 2007, the board decided that the time was right for Stumpf to take over the company. Kovacevich remains as chairman of the board of directors, but plans to retire by the end of 2008. Stumpf joined the Norwest Corporation in 1982, before it merged with Wells Fargo. Prior to becoming the chairman and CEO of Norwest Bank Arizona in 1989, he held management positions at Norwest Bank Minnesota. Norwest merged with Wells Fargo in 1998, and it was then that Stumpf took over the Southwestern Banking Group, followed by the newly formed Western Banking Group. He was instrumental in Wells Fargos acquisition of First Security Corporationa $23 billion dealand eventually took charge of the community banking division under Kovacevich. He had been president and COO of the company since 2005. Another well-known exec said good bye recently; Tom Pizzo, chairman of Wells Fargo Century, grew that sector into one of the nations largest banks engaged in accounts receivable financing. Pizzo retired in January 2008.
Buffetts choice
Investment legend Warren Buffett, the man behind Berkshire Hathaway, disclosed the contents of his stock portfolios in March 2007 (regulators allow him to disclose trades months after they occur, in order to prevent massive copycat trades that could shake the market). Buffetts report revealed that he had bought 13.4 million shares of Wells Fargo in 2006, bringing his total holding in the bank to six percent last year. Having performed better than many of its competitors latelyeven with its disappointing 2007 fourth quarterthe bank has once again attracted the attention of Buffett. A recent SEC filing shows that Buffett increased his shares of Wells Fargo stock to 331.4 million shares. Thats a value of $9 billion, and as of February 2008, it means that Buffetts Berkshire holds 9.4 percent of Wells Fargo.
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No. 1 in Wyoming
In January 2008, Wells Fargo announced that it would acquire United Bancorporation of Wyoming Inc., making it the largest bank in the state, based on both deposits and assets. The Jackson-based bank has $1.7 billion in assets, 300 employees, and five banks with 13 locations. Terms of the deal were not disclosed, but it is expected to close within the second quarter of 2008.
Laying blame
The subprime crisis has left a lot of cities and customers unhappyBaltimore is one of the angriest. In January 2008, its mayor and city council announced a civil suit against Wells Fargo, claiming that the financial institution and its lending practices discriminated against black customers, thereby causing a large number of foreclosures that have costs the city tax revenue and other monies. Buffalo and Cleveland have filed similar lawsuits; Cleveland, for example, is suing nearly two dozen banks, alleging that they knew they were giving out subprime loans to customers who could never pay them back. In Baltimore, Wells Fargo is the sole defendant in the case. The citys mayor, Sheila Dixon, is asking the court to keep the bank from placing higher fees on loans given to black borrowers, according to The New York Times. We do not tolerate illegal discrimination against or unfair treatment of any consumer, a spokesman for Wells Fargo told the Times in January 2008. Our loan pricing is based on credit risk. We are committed to serving all customers fairlyour continued growth depends on it.
Subpar earnings
Profits for the fourth quarter of 2007 were Wells Fargos lowest in six years. The bank earned $1.36 billion, a nearly 40 percent drop from the net income of $2.18 billion from the same period a year before. The news wasnt exactly a surprise; in November 2007, the bank had announced a $1.4 billion write-down and had attributed it to losses it expected from the subprime mortgage crisis. Luckily for Wells, its revenue grew in the fourth quarter by 8 percent to $10.21 billion. By mid-year 2008, the numbers were looking a little better, as the firm booked record revenue for the second quarter of the year its $11.5 million in revenue was a 16 percent increase versus the second quarter of 2007. Net income, though, came in at $1.8 billion, a 22 percent slide as compared to the 2007 second quarter.
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Go Canada
Wells Fargo Foothill, a division of Wells Fargo & Company, announced its expansion into Canada. The unit will offer secured financing solutions to middle-market companies up north, beginning in May 2007. Wells Fargo has been offering a similar service in the United States for more than 30 years.
GETTING HIRED
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Process of elimination
Step one in Wells recruiting process is differentiating yourself in meeting with recruiters at the career fair. Recruiters are looking for candidates whose resumes stands out and qualify you for a first-round interview. During first-round interviews, candidates must show not only personality but also financial ability by answering various questions. The final step in the process is the in-office interview, during which applicants have to stand out from the other 10 candidates. This process can vary depending on what office you are applying to and for what position. Some experience one of these three steps as a formal phone interview instead. Others have extensive on-campus interviews with two interviewers followed by one in-office interview that involves up to eight separate meetings. Some candidates may be asked to participate in more than one on-site interview day. At minimum, applicants coming out of college are required to participate in at least two-to-three interviews. Candidates should expect to be on their toes during the interview process, as many interviewers throw out rapid-fire questions and expect answers just as quickly. Some typical questions include the following: Name three things I should know about you. Name the four financial statements. What are the three parts to the cash flow statement? Walk me through the operating section of the cash flow statement. What does a COO worry about at night? What does Wal-Mart worry about at night? Tell me everything you know about our company. Another thing that might come up is how a candidate will fit into the geographical area of the office they are applying to. Interviewers might also want to know if you are OK with traveling. For certain, candidates should be prepared to discuss various finance and accounting concepts as well as questions about personal drive. Wells recruiters search for qualified candidates at career fairs, through professional associations and its own internal recruiting programs, and, of course, on college campuses. Big schools for Wells include the University of Illinois, Marquette and DePaul University, as well as business schools such as Berkeley, USC and UCLA. The firm hits both public and private universities, nationally and abroad.
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The bank is more conservative than other banks, which results in very structured job roles. But the upside there is that incoming employees have a defined career path that provides transparency about where they will be in one year or five years. In addition, because of this conservatism, job stability is pretty much assured. Another complaint insiders have about Wells is bureaucracy. There can be lots of red tape, which makes it hard to get things done fast. The firm is very old-fashioned about working remotely, causing things to sometimes take longer than they need to. There can also be some big-company corporate politics. The bright side of working for a firm this big, however, is that there is lots of room for advancement. Insiders say the sky is the limit at Wells Fargo. As long as you know what you want, you can get there. Sources say Wells Fargo is a great place to launch a career because advancement opportunities are huge.
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Wells Fargo spends a great deal of time and money on training their employees. One insider began work at Wells Fargo with two-and-a-half weeks of training in Houston, with 30 other analysts, then will head to San Francisco for six months of extended training, all paid for by Wells. This is a typical routine for an incoming banking employee. Upon being hired, training is very formal. The initial weeks of training are normally followed by a period of reading and testing. Then going forward, most training is done online. Theres also a great deal of on-the-job training. Sources say both on-the-job and the structured classroom-based trainings are very valuable to development. Overall, the firm provides endless training opportunities around the country. Simply put, Wells Fargo is among the best of the big banks for training. The firms best-of-breed programs far exceed what competitors do.
Big on diversity
Wells Fargo places significant emphasis on diversity. In addition to its existing recruiting and support efforts, the firms diversity council is taking significant steps to further diversity to ensure that our employee base reflects the customers and communities we serve. When it comes to women, Wells Fargo consistently ranks as one of the best companies for women to work for. No wonder, there are plenty of successful women working here. According to a contact, All of the new analysts hired last year were female. In most locations, insiders say the ratio is about 50/50, with women always treated equally. Some say the ratio is as high as 65 percent women. (According to the firm, about 60 percent of the firms employees are female.) Wells Fargo offers very reasonable to maternity leave, and its a place where females are treated with the utmost respect. Women do not receive any preferential treatment and are not discriminated against. One source points out that the firms head of commercial banking is an Asian female. Generally speaking, women are extremely powerful and influential at the company. At Wells Fargo, youll find people from multiethnic backgrounds such as Korean, Chinese, Guatemalan, Fiji, Armenian, white, Mexican, Italian, Jewish and German. One source says, If you walk through just about any department in Wells Fargo, you will easily see a diverse workforce in terms of ethnic minorities. The firm encourages ethnic diversity in the recruiting process and recently, has begun focusing on it more and more. According to one Denver-based insider, The office puts a lot of emphasis on ethnic diversity in the hiring process, but there is not as much diversity in the actual numbers. Most agree,
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however, that diversity is a priority. It is a scorecard metric on which all managers are graded. Diversity is held in high regard and is considered a big issue at Wells Fargo. Gay and lesbian employees receive the same treatment as all others. The firm offers benefits for domestic partners and does not put any pressure one way or the other on gay and lesbian individuals. A contact says, Our company is completely inclusive to GLBT community members.
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29
PRESTIGE RANKING
Dresdner Kleinwort
UPPER
Very open and international corporate culture
1301 Avenue of the Americas New York, NY 10019 Phone: (212) 969-2700 www.dresdnerkleinwort.com
BUSINESSES
Capital Markets Equity & Credit Derivatives Financing & Securities Management Fixed Income, Currencies & Commodities Global Banking Global Distribution Global Equities Global Finance Global Loans & Transaction Services Hedge Fund Solutions Research Strategic Advisory
DOWNER
Not a household name in the US
EMPLOYMENT CONTACT
www.dresdnerkleinwort.com/eng/careers
THE STATS
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Employer Type: Subsidiary of Dresdner Bank AG, a subsidiary of Allianz CEO: Stefan Jentzsch No. of Employees: 5,500 No. of Offices: 35
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
Allianz in charge
The corporate and investment banking division of Frankfurt-based Dresdner Bank, Dresdner Kleinwort operates through two main business groups: global banking and capital markets. It offers services such as advisory, financing and cash management to corporations, as well as trading and research to institutional investors. Dresdner Kleinwort has European headquarters in London and Frankfurt, and American offices in Boston and New York City. Parent Dresdner Bank is one of the largest banking groups in Europe, with 950 branch offices and nearly 28,000 employees in 50 countries.
Recent history
In 2001, Dresdner Bank acquired U.S. boutique Wasserstein Perella. At the time, Dresdner already operated a European investment bank called Dresdner Kleinwort Benson. The two investment banks were merged to form Dresdner Kleinwort Wasserstein. Shortly after that deal closed, German insurance conglomerate Allianz bought Dresdnerand its subsidiariesfor a whopping $22 billion. Bruce Wasserstein subsequently left the bank, but it was only in 2006 that the investment bank dropped the Wasserstein part of its name and rebranded itself as Dresdner Kleinwort; this coincided with the integration of Dresdners corporate banking operations. (Bruce Wasserstein is now the head of Lazard but his name remains associated with the private equity firm Wasserstein & Company, which he originally helped found).
In July 2007, Dresdner Kleinwort talked of plans to work more closely with Dresdner Banks owner Allianz. The plans, which were designed to take advantage of synergies between Allianzs core insurance business and global capital markets, involve the investment bank offering risk management, securitization, structuring and distribution for certain segments of Allianzs $1.8 trillion portfolio. In return, Allianz agreed to route more of its investment business through Dresdner Kleinwort. (For example, Allianz does approximately 100 million of daily business in the capital markets, but most of this was not at that time executed by Dresdner Kleinwort.) This cooperative plan was seen as a response to analysts and shareholder groups who had been calling for Allianz to spin off Dresdner Kleinwort. Naysayers pointed out that Dresdner Kleinworts 77 percent cost-income ratio is one of bankings highest, and suggested that perhaps an investment bank didnt fit within the insurers portfolio. Dresdner Kleinwort CEO Stefan Jentzsch sounded an optimistic note at a Munich conference in July 2007. Investment banks are risk takers and risk managers, he said. The first hints of the intermediation of insurance and the capital markets are already in the market. We can help Allianz pass on that risk through the combination of our structuring and placing expertise. The argument was that the distribution power of Dresdners retail banking platform was not the only benefit underpinning Allianzs ownership of Dresdner Bank
SEPA-ready
In August 2007, Dresdner Kleinwort became the first European bank to complete the certification process for Single European Payment Area (SEPA) transfers with the European Banking Association (EBA). The SEPA project, launching in early 2008, will allow Europeans to make non-cash Euro payments anywhere in the Eurozone using a single bank account and a single set of payment instruments. In other words, SEPA will eliminate any differences between national and international payments within the Euro area. The initiative was launchedand is overseenby the European banking community. Dresdner Kleinwort CEO Stefan Jentzsch said his bank plans to be at the forefront of this new way of doing business, and thats why Dresdner Kleinwort agreed to act as the EBAs SEPA pilot bank. We intend to make active use of various opportunities that present themselves over the next few years in order to further increase our market share in payment services, he said.
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Recovery mode
Headcount fell at Dresdner Kleinworts U.S. offices at the end of 2006, as its American workforce of 800 was cut by about 10 percent. The bank rebounded, but in the last weeks of 2007, German financial magazine Focus reported that Allianz planned to eliminate hundreds of Dresdner Kleinwort employees worldwide. Dresdner Kleinwort admitted that its credit department would lay off about 60 people in its credit department in 2008victims of the debt market crisis. Other sources put the estimated number of pink slips much higher, guessing as many as 350 to 500 people globally could lose their jobs. Although Allianz investors worried that the insurance company would suffer as a result of credit crunch related excesses of its investment bank, its total 2007 subprime-related losses, driven by Dresdner Kleinwort, were only 1.385 billion (other big banks reported much deeper losses. Meanwhile, Dresdner Kleinwort recorded an overall operating loss of 659 million for 2007. Allianz said the losses in credit trading undermined a good performance in the rest of the investment bank, and also clouded the whole of Dresdner Banks numbers.
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Dresdner Kleinworts emerging markets strategy is focused on Russia and Brazil. Many of the banks Brazil experts sit in the New York office, working closely with staff on the ground to support local and international clients. Through its Dresdner Bank heritage, Dresdner Kleinwort has been active in Brazil for more than a century and has built strong relationships with Brazils leading mid-market corporations and financial. It has a strong track record in Brazilian bond issuance, and utility M&A deals in particular, as well as local trading capabilities there.
GETTING HIRED
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Commendable culture
By and large, sources enjoy the company culture, which they refer to as friendly and team- and goal-oriented. Culture among junior bankers is great, confirms another insider, who also praises the business casual dress code. People are nice. Its a very open and international corporate culture. One contact says that at night, people will typically eat together or watch TV in a conference room. Everyone knows everyone.
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Salaries could definitely stand to be bumped up, insiders report. DKIB pays at or slightly below the Street, which is a big difference from the days of Wasserstein Perella, which compensated well above. Meanwhile, the workdays for junior people can be long, but employees dont have to work unnecessary hours. As for the actual work, junior personnel tend to assume relatively high levels of responsibility. DKIB is definitely looking for people who can work hard, people who understand the differences between the small firm and a large firm, says a source. Its not a firm where you can sort of hide in the corner and do one small part of a deal.
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30
PRESTIGE RANKING
3 World Financial Center 200 Vesey Street New York, NY 10281 Phone: (212) 428-6200 Royal Bank Plaza 200 Bay Street Toronto, Ontario M5J 2W7 Canada Phone: (416) 842-2000 Fax: (416) 842-8033 www.rbccm.com
DEPARTMENTS
Global Credit Global Investment Banking & Equity Global Markets Global Research National Clients Group
KEY COMPETITORS
Bank of America CIBC World Markets Cowen and Company Jeffries & Company J.P. Morgan Lehman Brothers Thomas Weisel Partners UBS Investment Bank Wachovia
THE STATS
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Employer Type: Subsidiary of Royal Bank of Canada Chairman & CEO: Charles Winograd Co-Presidents: Doug McGregor & Mark Standish No. of Employees: 3,300 No. of Offices: 76
UPPERS
Deal experience is extremely good Very competitive pay package No title hierarchy
DOWNERS
Some office red tape Lack of brand recognition in US Late nights and all-nighters are frequent
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Top Canadian investment bank; best Canadian deals to date Not a big player Growing US investment bank Building franchise but high turnover
EMPLOYMENT CONTACT
www.rbccm.com/careers
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THE SCOOP
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The race is on
In a separate February 2007 announcement, the firm named Doug McGregor and Mark Standish as new co-presidents of the firm, reporting to CEO Chuck Winograd. Interestingly, in his statement congratulating McGregor (based in Toronto) and Standish (based in New York), Winograd called their promotions part of RBC Capital Markets long-term succession planning, hinting at a potential two-way race for the top job.
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Committed to realignment
RBC Capital Markets vow to bring its U.S. business into alignment with its other operations entered a new phase in March 2007. The bank announced that as part of its plan to realign its bond trading, mortgage trading and government-sponsored enterprises (GSE) derivatives trading platforms, it had hired two senior fixed income executives. Ryan Fennelly was poached from Credit Suisse, and Devin Dangler was brought in from a six-year stint at HSBC. At the same time, RBC Capital Markets promoted Aaron Kennon to senior relationship manager for U.S. agencies and charged him with developing synergies between bond, mortgage and GSE trading activities. The bank also relocated top trader Paul Klinger from Memphis to New York.
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Vault Guide to the Top 50 Banking Employers 2009 Edition RBC Capital Markets
Fell began his career with RBC in 1959 when he joined the research department of Dominion Securities at the age of 20, after graduating from St. Andrews College in Aurora, Ontario. By 1965, he had become manager of the department and, in 1967, decided to transfer into to the investment banking business development group. Fell was appointed a director of the firm in 1969 and in 1972 became an executive vice president. In September 1973, Dominion Securities merged with the investment banking firm of Harris & Partners Limited, and Fell was appointed president of the combined company at age 34. In 1980, Fell was appointed CEO, a position he held for 19 years. Fell was appointed a vice chairman of RBC in 1996 and a deputy chairman in 1998, before taking on the role of chairman of RBC Capital Markets in 1999, a position he held for eight years.
Hometown favorite
According to the Thomson Financial (now Thomson Reuters) 2007 investment banking league tables, RBC Capital Markets was the pride of its home country, ranking No. 1 in Canadian-announced M&A, up from No, 3 in 2006. The firm announced 67 deals worth a total of $157 billion. RBC Capital Markets made significant strides in U.S. M&A, jumping 16 places in U.S. announced deals to No. 20 (from No. 36 in 2006). RBC was impressive on a global scale in 2007 as well, coming in at No. 20 in worldwide announced M&A, up from No. 31 in 2006.
GETTING HIRED
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30 minutes to charm
Incoming analysts and associates are recruited based on a two-step process, including a first round on campus followed by an on-site Super Day. To be included in on-campus interviews, candidates from target schools can drop their resumes. Typically, on-campus interviews are either one-on-one or two-on-one with a senior banker and a more junior banker, and last about 30 minutes. This round covers the whole spectrum of technical, behavioral, case and brainteaser questions. Beyond assessing intelligence, leadership and achievement, interviewers also focus on attitude. Super Day normally consists of four to five interviews with mix of associates, VPs, directors and managing directors. Some candidates meet as many as eight people on the first round. Most Super Day interviews are around 30 minutes each as well. While the first set of interviews is primarily quant, the second rounds tend to be primarily fit interviews. But dont leave your quant hat at home. Second-round topics can range from detailed quantitative and modeling questions to ones about team management. Candidates usually find out within one week of Super Day whether they received an offer.
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Vault Guide to the Top 50 Banking Employers 2009 Edition RBC Capital Markets
Relatively speaking, RBC is very cognizant and respectful to the individual when it comes to hourly demands. Long hours are usually associated with high quality deal work rather than endless pitch books and analysis. Compared to the industry norm, the average RBC analyst works very reasonable hours. For junior bankers, hours are more volatile, as with senior bankers, the focus on hours is less important than revenue productivity. Sometimes, first year analysts can get away with taking a weekend day off, but late nights are frequent and so are all-nighters.
No subordinates here
Senior bankers do not treat junior bankers as subordinates. Respect among all employees is very high. When it comes time for reviews, comments are thoughtful and constructive criticism is offered. The firm has great senior bankers who get the job done, are fair, and care about personal development. Of course, there are exceptions, but generally, the firms leadership is top notch. Many have bulge bracket experience, so youre dealing with seasoned veterans with great industry knowledge. Some say analysts are treated well but associates are not, but the consensus is that managers respect all junior bankers for their time, their talents and them as people. Managers at the firm are friendly, patient, and willingeven enthusiasticto teach. Analysts at RBC get a lot of one-on-one time with managing directors and group heads, which most consider a very unique luxury. RBC tends to be a no nonsense type of firm, and mostly everyone has this attitude. There are some egos, but they do not get in the way of doing business. RBCs senior bankers set the tone for a team-oriented, respectful work environment and it flows through the whole office.
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New offices
RBCs New York crew recently moved to 3 World Financial Center. According to the firm, the move underscores its expansion of in the U.S., and will allow it to consolidate most of its trading, front office and associated support functions in lower Manhattan. In San Francisco, there is plenty of space and the conditions are comfortable, but there is not much to look at. Its not luxurious, but certainly clean and has a nice kitchen. A contact in that location says, The office feels more like a retail office. Perhaps because the infrastructure is lacking, and carpets and furniture are run down. And the office could use some more conference rooms. The cubicles are nice and high, which provides some privacy. But overall, the office is just so so.
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31
PRESTIGE RANKING
One Montgomery Street San Francisco, CA 94104 Phone: (415) 364-2500 Fax: (415) 364-2695 www.tweisel.com
BUSINESSES
Asset Management Brokerage Equity Research Investment Banking Private Client Services
UPPER
Very team-oriented and friendlya lot of direct interaction with vice presidents, directors and managing directors
THE STATS
Employer Type: Public Company Ticker Symbol: TWPG (NASD), TWP (TSX) Founder, Chairman & CEO: Thomas W. Weisel Revenue: $289 million (FYE 12/07) Net Income: $20,000 No. of Employees: 600 No. of Offices: 14
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DOWNER
Training program is not six to eight weeks long, so employees need to have an appetite for learning on the job
EMPLOYMENT CONTACT
Follow the careers link at www.tweisel.com.
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Growing boutique with more scale than many other boutiques Lost lots of talent Smart and strong niche player Never lead bank on deals
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Vault Guide to the Top 50 Banking Employers 2009 Edition Thomas Weisel Partners
THE SCOOP
A public affair
Thomas Weisel Partners (TWP) went public in 2006, launching a self-underwritten IPO. The stock debuted strong and rose 30 percent above its $15 per share offering price on its first day of trading. This strong performance shocked Wall Street insiders who had predicted a less rosy future for the IPO after Goldman Sachs backed out as the underwriter just one month before the firm went public. However, after its successful debut, the firms stock has been volatile, and as of July 2008 lingered well below its debut price at approximately $5.50 per share. The firm was founded in 1998 by Thomas W. Weisel (Wize-ul), who had founded Montgomery Securities 37 years earlier. In 1997, Weisel sold Montgomery to NationsBank for $1.3 billion. When NationsBank merged with BankAmerica to form Bank of America, he left his first firm behind to start another. In his spare time, Weisel serves as the chairman of the USA Cycling Development Foundation Board and sits on the boards of the New York and San Francisco Museums of Modern Art. He also supports his alma mater by serving on the board of the Stanford Endowment Management Committee. Today, Weisels eponymous firm offers asset management, equity research and brokerage services in addition to investment banking; it is headquartered in San Francisco, with offices in Baltimore, Boston, Chicago, Cleveland, Denver, New York, Portland, Silicon Valley, Calgary, Toronto, London, Mumbai and Zurich.
A busy bank
TWP focuses on growth sectors of the economy, particularly the technology, health care, consumer, Internet, media, telecom, energy, metals and mining sectors. The investment bank offers corporate finance and strategic advisory services, including mergers and acquisitions, divestitures, spin-offs, takeover defenses, private placements and other transactions. It is run by Bill McLeod and Brad Raymond, co-heads of the investment banking group. Through March 2008, the bank had completed 734 transactions, including 475 public equity deals, 88 private placements and 171 M&A transactions. Approximately 40 percent of TWPs M&A deals have been between $100 million to $1 billion, but it has handled a wide variety of deals ranging from smaller deals to massive $40 billion transactions. Recent advisory transactions include the $215 million sale of Iomega to EMC Corporation, $72 million sale of WJ Communications to TriQuint Semiconductor, $400 million acquisition of eScription by Nuance Communications and $205 million sale of PlateSpin to Novell. On the equity front, TWP recently led transactions for Constant Contact, Nuance Communications and Whitemud Resources. It also co-managed the IPOs of Cardionet, Memsic, Entropic Communications and Global Consumer Acquisition Corp. in 2007, and was the sole book manager on the IPOs of Orion Energy and Internet Brands.
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Tech talk
With its emphasis on growth sectors, TWP is a natural host for an annual Tech Conference which examines the future of the technology sector. The event showcases new research and puts venture capitalists and institutional investors in touch with CEOs from hundreds of technology, communications, electronics, IT, semiconductor, software, telecommunications and wireless companies. It also gives TWP a chance to scout future IPO or M&A clients.
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There will be a few changes to TWP as a result of the merger. In an effort to more closely align the compensation practices of the two firms with one another and industry practice, TWP will be eliminating its practice of paying out midyear retention bonuses. The company has accelerated these bonuses to be paid earlier in the year.
Oh, Canada
With the acquisition of Westwind under its belt, it was full steam ahead for Thomas Weisel Partners expansion into the Canadian market. The firms common stock was approved for listing on the Toronto Stock Exchange on January 9, 2008, trading under the symbol TWP. The firms new President Lionel F. Conacher said, Many of Westwinds clients have listed on the TSX, as it is the premier exchange for energy and mining companies, and the Thomas Weisel Partners listing demonstrates our combined firms commitment to the Canadian capital markets. The firm will also continue to be traded in the U.S. on Nasdaq exchange under the symbol TWPG.
Down year
For full-year 2007, TWP pulled in $289 million in total revenue, an increase from the $276.3 million it earned in 2006. Net income, meanwhile, came in at only about $20,000 for the year, a serious drop from the $33.3 million the firm reported in 2006. Because of the hits to the overall industry, the firm postponed some of its M&A transactions that it had planned for the fourth quarter. But the first quarter of 2008 wasnt looking much better for the firm (and the financial services industry as a whole). With difficult market conditions as the backdrop, revenue for the quarter came in at $48.9 million, down from the $76.7 million it earned in the first quarter of 2007. Net income for the quarter translated to a loss of $17.8 million. Capital market conditions led to a 78 percent plunge in its investment banking revenue. As a result of the poor market conditions, Thomas Weisel cut 9 percent of its staff during the quarter, and said it would cut a further 13 percent in April of 2008. However, according to the the firm, it has continued to add talent at the senior levels in order to bolster our ability to generate revenue in better market conditions.
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GETTING HIRED
Be a rare breed
Thomas Weisel is a firm where pedigree is important. Because of that, its very selective in its recruiting process and careful to ensure that all hires have the requisite level of experience. Nevertheless, one insider remarks seeing some positions remain open for a long time as many candidates are reviewed while other positions that require typically less responsibility or are less teamwork-intensive, are filled quickly. Regardless, if youre intelligent, have a good personality and are willing to work hard, the firm is a great place to work. For current openings, check out the careers link at www.tweisel.com.
Brace yourself
Once youre asked in, expect about two rounds of interviews that could entail meeting up to 20 people. Candidates will typically interview with all or most members of the teams hiring, as well as management. And be prepared to be quizzedwriting and skills tests are often required for associates. There are also technical questions to gauge your ability to grasp financial concepts along with questions focused on fit, familiarity with the firm personality and work ethic. But the course of action does tend to vary. One insider says that the process consisted of two phone interviews and one Super Day, adding, The interview questions were not atypical for investment banking, with a balance of fit and technical questions. Your experience may depend on when you apply, however. There is rapid, active hiring when there is a need, while it tends to be slower at other times.
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Though the firm recruits from top undergrad and business schools such as Brown, Dartmouth, Penn, Harvard, Stanford, Columbia, and Wharton, it also finds candidates through recruiters, Monster and [recruiting firm] Glocap. And never fear if your school isnt visited in the usual roundsthe firm does hire from other places if the fit is right.
Good balance
The hours spent at the office can vary depending on who you work with, though they are usually typical investment banking hours and average around the neighborhood of 70 to 80 per week. Making an appearance at the office on weekends is an occurrence that tends to happen more than once a month. And while your work load is ebb and flow, its also often dependent on the efficiency of the managing director. But theres good news: Bankers tend to be reasonable about not overworking analystsTWP has a reputation as more of a lifestyle firm. One analyst even calls it the best balance of life that I know of.
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Class act
Complaints are tough to findif not downright impossiblewhen it comes to sources opinions on management. I have great relationships with both my managers and my subordinates. Generally, there is a lot of direct interaction with vice presidents, directors and managing directors, which is [the] great part of working at Thomas Weisel. One insider even goes so far as to say, The attitude of the senior bankers is probably the most compelling reason to work at TWP. They are highly intelligent, respectful and genuinely appreciate a thoughtful work product and good effort.
Its an art
Office space in both the San Francisco and New York offices receive high marks. Both have amazing artwork, and the San Francisco offices, outfitted during the peak of the boom in 2000, boast the best offices in the Bay area. In addition to featuring lots of good art, the New York offices are comfortable offices and housed in a good location.
Your call
Although most people still wear suits or at least dress on the high end of business casual, business attire is optional. One insider calls the option a little strange, but says a lot of people wear suits unless its Friday or they have been working too much. Even though theres the option of casual dress within the office, client contact is still important. Slacks and a dress shirt with a jacket is typically what employees will wear for client engagements. And the higher-ups seem to stick with the formalvice presidents and above typically wear suits daily.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Thomas Weisel Partners
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32
PRESTIGE RANKING
One Wall Street New York, NY 10286 Phone: (212) 495-1784 Fax: (212) 809-9528 www.bnymellon.com
BUSINESSES
Asset Management Asset Servicing Broker-Dealer and Advisory Services Issuer Services Treasury Management Wealth Management
UPPERS
Good job security Diverse workforce
DOWNERS
Limited upward mobility Diversity hiring practices could use work
THE STATS
Employer Type: Public Company Ticker Symbol: BK (NYSE) Chairman: Thomas A. Renyi CEO: Robert P. Kelly Revenue: $11.3 billion (FYE 12/07) Net Income: $2 billion No. of Employees: 42,000 No. of Offices: Offices on six continents in 42 countries
EMPLOYMENT CONTACT
www.bankofny.com/careers
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong and sophisticated and venerable Merger with Mellon has hurt their reputation Good securities dealings, large custody business Competitor of top banks but not ever at the top
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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank of New York Mellon
THE SCOOP
The banks treasury management services is the third-largest payment processor in the U.S. with more than 170,000 wire transfers daily. In 2007, it was named the No. 1 choice in customer satisfaction by Bank Leader Survey, as well as the No. 1 provider of accounts payable outsourcing by the Brown Wilson Black Book of Outsourcing.
Cool as a cucumber
The Bank of New York Mellons CEO, Robert Kelly, is the former CEO of Mellon Financial. Kelly was appointed to that post in February 2006, as the result of an extensive search process launched to find a successor to Martin McGuinn, who previously
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announced plans to retire. Kelly, 51 at the time of his appointment, joined Mellon from Wachovia Corporation, where he was CFO and senior executive vice president since 2000. Voted best large capitalization bank CFO in America by Institutional Investor in both 2004 and 2005, Kelly hit the ground running, taking over for McGuinn immediately after his appointment. And he was again deemed the man for the job when Mellon joined forces with The Bank of New York in July 2007. Bank of New York chairman and CEO Thomas Renyi became The Bank of New York Mellons executive chairman. But within two years, Renyi will step aside to let Kelly fill his shoes. Perhaps it was his cool-and-collected demeanor that kept him in the top role. Kelly was under pressure from the get go since stepping foot in his new office at Mellon, as he took over for McGuinn at a time when the former CEO was getting hammered for Mellons flailing stock price. But upon taking the helm, Kelly remained calm, declining to announce changes of direction, strategic reviews or management purges, reported Financial News. Instead, he listened to clients, analysts and, perhaps most importantly, staff, all of whom had their own ideas about what was right and wrong with the firm. As far as his plans for the combined company, Kelly told reporters in December 2006 that lose no customers is going to be our rallying cry, and we are going to hate it if we lose customers.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank of New York Mellon
Mixed bag
The bank reported mixed results for full year 2007. Net income came in at $2.04 billion for 2007, down from $2.85 billion in 2006. Total revenue, however, increased to $11.33 billion, up from $6.84 billion in 2006. BP Mellon Asset Management, which controls all of the banks investment management units, brought in $1.58 billion in total revenue in 2007, up from $310 million in 2006. The firm pointed to the Mellon merger, net new business and improved equity markets as reasons for the mostly encouraging results (subprime mortgage exposure accounted for much of the dip in the firms net income).
Winning together
Even though its a new company, BNY Mellon has racked up some awards already. Fortune listed it as the No. 1 most admired company in a March 2008 issue. In February 2008, Thompson Reuters called the firm the No. 1 trustee in the U.S. for the past year (BNY Mellon served as trustee on 40 percent more issues than its closest competitor). The new powerhouse also grabbed the trustee of the year award from the International Securitisation Reportan honor bestowed for its commitment to client support and global development in new asset classes.
GETTING HIRED
Cradle robbers
For potential candidates, especially those just beginning their careers, the career section of the firms web site indicates that you just might be in luck. Individuals with undergraduate degrees seeking entry-level positions can apply for positions such as branch banking, corporate trust, investment accounting, stock transfer, unit investment trust and American Depositary Receipts. For MBAs, BNY Mellon regularly hires newly minted business grads to serve as corporate banking associates, investment management associates, and media and telecommunications banking associates. The bank also offers an MBA summer associate program where business students work for 12 weeks in one of the following divisions: asset management, private client services, capital markets, corporate banking, international banking, product management, marketing or operations management. BNY Mellon summer internships for undergraduate students are typically in the firm's branch banking group. The company generally likes to hire new college grads, says a current insider. It is an excellent opportunity right out of college. Another adds that it is a good first-time job. The firms web site makes the application process easy, allowing you to submit your resume online.
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Just relax
The interview process, insiders say, is relaxed, relatively informal and nothing fancy. One insider, who says he interviewed with three different managers and supervisors, reports being asked basic questionsmany of them behavioral. Expect at least three rounds, but dont expect bells and whistlesits a fairly straightforward process, insiders say.
Old school
The corporate culture at the firm is traditional, but with a very good work environment for everybody. Maybe thats because where teamwork is the core of business. Although people need to work hard, its likely an offshoot of the fact that the company has grown up very quickly in recent years. But theres a flip side, toothe bank also has people who are dead set on leaving the office by 4:59 p.m. Then again, if you are ambitious, there is no limit to the amount of exposure you can receive here. So, for the brightest, this is an open field in terms of experience and learning.
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Hours spent in office tend to be reasonableyour basic 8:30 to 5 and 10 to 7, says one insider. Still, there is overtime which pays you time and a half for nonexempt employees. But be warnedonce you get to be an analyst and above, you do not get paid overtime, so many become more reluctant to stay late and take on extra work or work that has yet to be finished.
A long way to go
On the diversity front, there appears to be more women than men, and the majority of the administrators were very young. But there are a low number of African-Americans and an even smaller number of Hispanics. There is, however, notable diversity in management, insiders report, but when it comes to advancing, it seems as though its important to say the right thing and impress the right person to get ahead. One contact says there was political correctness in name onlyactions and tone spoke louder than words. But it seems like the bank is on the right track for the future. Due to the recent merger of Bank of New York and Mellon, the company is now the biggest custodian in the world and still has much room for growth, especially in Asia. It seems that on the whole, Bank of New York Mellon is in very strong standing and should be for the long term.
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33
PRESTIGE RANKING
BNP Paribas
KEY COMPETITORS
Crdit Agricole HSBC Holdings Socit Gnrale
16, boulevard des Italiens 75009 Paris France Phone: +33-1-40-14-45-46 Fax: +33-1-40-14-69-73 www.bnpparibas.com
DEPARTMENTS
Asset Management & Services Corporate & Investment Banking Retail Banking
UPPER
Close-knit team of very friendly and helpful people
THE STATS
Employer Type: Public Company Ticker Symbol: BNP (Euronext) President, CEO & Director: Baudouin Prot Revenue: $116.16 billion (12/07) Net Income: $10.71 billion No. of Employees: 141,911 No. of offices: 2,200
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DOWNER
Big name overseas, but not well known in the US
EMPLOYMENT CONTACT
See careers section of www.bnpparibas.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Smart and strong Good in Europe; weak in the US Incredibly strong in exotic products French
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THE SCOOP
Truly European
With a history that includes a laundry list of French banks dating back to the 1860s, BNP Paribas is Frances largest financial firm, boasting operations in 85 countries and over 161,000 employees worldwide. By market capitalization, BNP Paribas ranks among the worlds top-15 banks. Its three core businesses are retail banking, asset management and services, and corporate and investment banking. The retail banking division includes French retail banking and international retail banking and financial services. The asset management division offers insurance, securities services and wealth and asset management. Finally, the corporate and investment bank provides financing and advisory and capital markets services. BNP Paribas also has three standalone subsidiaries: BNP Paribas Capital, which contains the firms private equity activities; Klepierre, continental Europes No. 2 listed property group that specializes in shopping centers; and BNL, a 2006 acquisition and Italys sixth-largest banking group. In the U.S., BNP Paribas primary offices are located in New York, Dallas, Chicago, Houston, Los Angeles, Miami and San Francisco. It also has branch outlets under the Bank of the West and First Hawaiian Bank brand names. In the U.S, BNP Paribas headcount is approximately 15,000a mere fraction of its French and European staff numbers.
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M&A machine
On the 2007 Thomson Financial (now Thomson Reuters) banking league tables, BNP Paribas ranked No. 12 in worldwide announced M&A deals, a one-place jump from its 2006 position at No. 13. The firm worked on 199 deals in 2007 worth a total of $384.6 billion. In European announced M&A for 2007, BNP Paribas held on to its No. 10 ranking, working on 167 transactions worth $376 billion. Also according to Thomson, BNP was the No. 1
Growing headcount
In March 2007, BNP Paribas said it would bolster its corporate and investment banking business by opening a new support functions headquarters in Jersey City, N.J. North America Territory head Everett Schenk said the new digs were a critical step for our development in the U.S., as we are forecasting significant organic growth in the coming years. He added that staff levels in the New York area should reach 3,000 by 2012, up from current headcount of 2,400. Looking abroad, the firm also announced in March 2007 that it planned to increase staff in China by 50 percent over the next two years. Although no specific numbers were given, at the time BNP Paribas had four branches in China and approximately 5,200 employees in its three business divisions throughout Asia. Later, in May 2007, BNP Paribas announced plans to add nearly 400 hundred jobs in Scotland over the next three to five years, expanding its Dundee and Glasgow offices.
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Vault Guide to the Top 50 Banking Employers 2009 Edition BNP Paribas
Good branding
In the summer 2007, BNP Paribas found itself among Paris fashion elite when it came in second to Louis Vuitton on Interbrands annual ranking of top French brands. The ranking calculates the value of a brand based on four criteria: market segmentation, financial analysis, role of the brand and its strength. B NP Paribas value was determined to be 5.85 billion, just overcoming the third top brand, AXA, worth an estimated 5.83 billion. Both financial firms have a long way to go before impressing the fashion crowd, however: No. 1 Louis Vuitton was determined to be worth 16.17 billion.
French history
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In late 2007, BNP Paribas was part of a record-breaking IPO. Bureau Veritas, a company that focuses on certification services in the fields of quality, health and safety, environment and social responsibility, came through with an IPO of 1.24 billion. The offeringfor which BNP Paribas acted as joint bookrunner along with Goldman Sachs, Deutsche Bank, HSBC and Socit Gnralewas Frances largest in 2007. Despite poor market conditions, the offering was a success with institutional investors and individual French investors. The IPO involved private equity firm Wendel Group, which bought a majority stake in Bureau Veritas in 2004, selling over 32 million shares. The firm still holds over 60 percent of Bureau Veritas.
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GETTING HIRED
Take responsibility
The firm calls its positions highly demanding ones that involve lots of autonomy and responsibility, but encourages applicants with strong work ethics to step up to the plate. BNP Paribas encourages potential applicants to search for available positions online. The firm recruits candidates into corporate and investment banking, retail banking, asset management and various support areas. The careers section of the firm's web site (www.bnpparibas.com) notes the types of background and skills required for each area. The firm also provides several case studies highlighting individuals who work at the firm. The postings include descriptions of what employees do at their jobs and the type of skills, education and background needed to help land a job with BNP Paribas. Internship programs are offered in all industry segments and are highly recommended by current BNP Paribas insiders. Specifically, for graduates looking for a position within the investment banking division, a previous internship in finance is a real advantage," the firm notes. A former intern says that his experience involved learning by doing, provided good integration and led to an employment proposal. Another contact calls his internship an incredible experience for those avid to learn about the financial markets in all its aspects. And yet another insider who had interned at multiple financial firms in the past calls BNPs internship the most organized of all. International prospects abound on the site, offering potential employees choices from Bahrain to Switzerland. There are also more than 300 possible positions to choose from, spanning every core business in which BNP Paribas operates. To apply for a position, candidates must send a cover letter and resume to the respective regional office in which they want to work; BNP Paribas provides a full list of the appropriate contacts online. The hiring process can be three-tiered: telephone interview, first meeting and second meeting. A current insider describes the process: Generally, human resources will organize meetings with groups of 20 to 30 people, then an individual interview with an HR manager takes place. Then there is another round of three to five interviews with operational managers. The interviews focus on motivation, capacity to evolve in the group and professional behavior.
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Communication is key
The work culture at BNP revolves around friendly communication. True, theres also a high volume of workload in a timebound fashion. But dont get nervous about if youll be able to deal with it allhandling the high volume is possible because of the close-knit teamwork that fosters free and smooth workflow across desks. It also encourages close cooperation between different people. The firm also promotes a very high standard of ethics in its business dealings with clients and other financial institutions. BNP Paribas employs generally nice people who are very friendly and helpful. But candidates who are offered a position with BNP can also expect to enter a firm characterized by prudence. Employees work around 50 to 60 hours per week, with weekend work about once a month, but hours depend on what department you are in, varying from clock watchers who bolt at 5 p.m. sharp to those who pull all-nighters and work on weekends." Although the dress code is business casual, insiders say the firm does have casual Fridays. And the burden of dress code enforcement tends to fall on managementeach manager is responsible for enforcing the corporate casual dress code, although there seems to be a wide range of what is acceptable as office attire. Some departments feel a polo shirt and khakis are appropriate, while others think that pedal-pushers, sandals and tight tank tops make the grade. Meanwhile, benefits include stock options for key employees and annual employee-share schemes, as well as complimentary health and pension insurance. Dont count on instant promotions, though. Opportunities for advancement are only available
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at high levels, reports one insider. You do not often see entry-level people moving up, and new jobs are not posted for lateral moves. You must know people in other departments if you have a chance of making a move. Nevertheless, the firms diversity efforts get high marks. Within the company, theres a diverse group of Americans, Europeans and South Americans. Plus, there are many high-level officers who come from different ethnicities and those with multilingual backgrounds are appreciated.
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PRESTIGE RANKING
711 Fifth Avenue, 9th Floor New York, NY 10022 Phone: (212) 832-8000 Fax: (212) 832-8023
DEPARTMENTS
M&A Advisory Money Management Services Private Equity Underwriting Venture Capital
EMPLOYMENT CONTACT
Human Resources Allen & Company 711 Fifth Avenue New York, NY 10022
THE STATS
Employer Type: Private Company President & CEO: Herbert A. Allen No. of offices: 1 No. of Employees: 200
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Elite media boutique Pretentious Very prestigious; tough to get an offer Quiet
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Vault Guide to the Top 50 Banking Employers 2009 Edition Allen & Company
THE SCOOP
The old saying its who you know has proven true at Allen & Co., where the Rolodexes are worth their weight in gold. In addition to a prestigious client roster, Allens people often make connections of their own. In 2006, Allen Vice President Andreas Lazar left the firm to become a senior vice president of business development at Sirius Satellite Radio, a move that could prove useful for both Sirius and Allen in future deals. Other Allen executives hold important positions in powerful companies. Stanley Shuman, an Allen managing director, is also a director at Rupert Murdochs News Corporation (the company that owns The Wall Street Journal, FOX, The New York Post and MySpace, among hundreds of other holdings). Allens nonexecutive chairman Donald Keough, a former Coca-Cola president, sits on the board of Warren Buffetts Berkshire Hathaway group. In February 2007, Allens managing director, Jack Schneider, took an assignment far from the firms usual realm of entertainment and media. He was invited to join a select group of retired defense experts, attorneys and CEOs in the Missile Defense Advocacy Alliances Team MDAA. This nonprofit group works to develop, test and deploy missile defense systems. Team MDAA will meet annually and serve as on-call consultants.
The place to be
Allen & Companys annual media conference in Sun Valley, Ida., is watched closely by Vanity Fair as well as by business publications. Thats because its a star-studded event, drawing the likes of Bill Gates, Oprah Winfrey, Warren Buffett, Barry Diller, Michael Eisner and Sumner Redstone. Since its beginning in 1982, Allens executive retreat has become a crucible for some of the biggest mergers in American mediathe Time Warner/AOL deal and the Disney/ABC deal both got their start in Sun Valley.
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station on Sirius Satellite Radio. Dennis insiders hinted that the company hoped to sell its flagship magazines as a bundle, but might consider offering them separately if the prices were right. Media analysts learned in the fall of 2006 that Allen and Dennis were talking to several potential buyers, including Girls Gone Wild creator Joe Francis and former Wenner Media executive Kent Brownridge. At one point, a $250 million deal with an undisclosed buyer was said to be in the works, but this fell through before it could be finalized. In February 2007, Dennis president Steve Colvin finally went public, issuing a press release to confirm the hiring of Allen & Co. and the companys collaborative search for a likely buyer. A few months later, Dennis sold its American titles to buyout firm Quadrangle Group for about $250 million.
Digging up business
In December 2007, Allen & Companys name popped up in yet another high-profile, secretive deal. Digg, a user-driven social content web site, has long made its way around rumor mills, as industry watchers buzzed about a possible sale. Rumors were solidified in 2008 when Venture Beat reported that Digg had hired Allen & Company, a tiny but influential private investment firm, to shop the site for $300 million. Valleywag reported that the Digg-Allen & Company connection was made at the investment banks annual event in Sun Valley, which Digg CEO Jay Adelson attended in 2007. Valleywag also reported in March 2008 that Google and Microsoft were preparing to bid on Digg, but Diggs CEO denied the report. As of June 2008, Digg had not been sold.
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GETTING HIRED
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PRESTIGE RANKING
125 Broad Street New York, NY 10004 Phone: (212) 668-8000 www.opco.com
DEPARTMENTS
Asset Management Estate Planning Investment Banking Trust Services Wealth Management
EMPLOYMENT CONTACT
See careers under about Oppenheimer section of www.opco.com
THE STATS
Employer Type: Subsidiary of Oppenheimer Holdings Chairman: Albert Lowenthal Revenue: $914.4 million (FYE 12/07) Net Income: $75.4 million No. of Employees: 3,500 No. of Offices: 80
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Muni bond masters Everyone's quitting from CIBC purchase Great reputation A mess right now
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Vault Guide to the Top 50 Banking Employers 2009 Edition Oppenheimer & Co.
THE SCOOP
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Back to Fahnestock
The U.S. broker-dealer is backed by over 125 years of history. The firms roots go back to 1881, when William Fahnestock founded Fahnestock & Co. Through over a century of expansion and merger activity, Fahnestock & Co. eventually became Fahnestock Viner Holdings, which acquired Oppenheimers U.S. private client and asset management divisions in 2003, and changed its name to Oppenheimer Holdings. When that happened, the companys principal operating subsidiary, Fahnestock & Co., was renamed Oppenheimer & Co. In the years that followed, Oppenheimer made two big acquisitionsMcDonald Investments and UBSs Fishkill, NY, officefurther solidifying itself as a leading financial services company.
Four pillars
Oppenheimers capital markets group offers investment banking, research and trading solutions to growing companies, thriving communities and institutional investors. Oppenheimers bankers work across a variety of industries, including consumer, energy, finance, health care, industrials, media, telecom and technology. The firms public finance department works closely with cities, states and public authorities to develop efficient financing plans. The capital markets group has an experienced equity research team made up of over 60 senior analysts. Wealth management services is comprised of over 1,300 financial advisors located in more than 90 offices across the U.S. The division provides advice on a broad range of products and services to individuals, families, corporate executives, businesses and institutions. The firms asset management arm was founded in 1985 to help individual and institutional investors build customized investment plans based on strategic asset allocation. Today, over 150 professionals work for Oppenheimer Asset Management, which provides customized professional money management through the consulting group, Oppenheimer Investment Advisers and the alternative investments group of Oppenheimer Asset Management. Oppenheimer Trust Company was established as a service to longstanding, high-net-worth clients and their families. The division provides clients with access to fiduciary services.
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Rough times
In April 2008, the firm released its results for the years first quarterwhich were nowhere near its full-year levels. Revenue came in at $231.9 million, a respectable 8 percent increase from the $214.1 million the firm brought in within the first quarter of 2007. Net income, however, didnt look so hopeful. Oppenheimer had a net loss for the quarter of $16.1 million, a serious tumble from the $16.8 million in net profit the firm recorded for 2007s first quarter. Unstable credit markets were mostly to blame for the loss, though expenses related to the CIBC acquisition also contributed to the negative income.
GETTING HIRED
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36
PRESTIGE RANKING
Rockefeller Center 600 Fifth Avenue, 21 Floor New York, NY 10020 Phone: (212) 548 6555 Fax: (212) 399 8930 www.macquarie.com/us
DOWNER
Bankers "often work Sundays or Saturdays"
BUSINESSES
Banking & Securitization Equity Markets Financial Services Funds Management Macquarie Capital (f/k/a Investment Banking) Real Estate Treasury & Commodities
EMPLOYMENT CONTACT
www.macquarie.com/us/about_macquarie/index2.htm
THE STATS
Employer Type: Public Company Ticker Symbol: MQG (ASX) CEO: Nicholas Moore Revenue: A$8.2 billion (FYE 3/08) Net Income: A$1,803 million No. of Employees: 1,000 (US) No. of Offices: 17 (US)
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Solid Better known internationally than within the USnot strong in the US Great infrastructure group Research firm
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Vault Guide to the Top 50 Banking Employers 2009 Edition Macquarie Group (USA)
THE SCOOP
Free to grow
For Macquarie, late 2007 brought some significant structural changes, including a new ticker symbol. Australias top investment bank had been listed on the Australian Stock Exchange for years as Macquarie Bank Limited (MBL). MBL served as the parent company for Macquaries global operations, including a complete roster of investment, advisory, trading and financial services. In recent years, Macquarie has developed a voracious appetite for acquisitions: the bank has spent billions on investments ranging from boutique advisory firms to telecom utilities. (Most of the money has been spent far from Macquaries native Australia, proof that its serious about pushing its way onto the world banking stage.) In October 2007, Macquarie requested and received a syndicated bank facility of $8 billion AUD ($6.4 billion) and an approval from the Australian Prudential Regulation Authority to set up a nonoperating holding company. The result was a formal corporate restructuring in November 2007. Under the new structure, Macquarie Group became the organizations holding company, using that $6.4 billion loan to acquire Macquarie Banks investment banking operations, institutional brokerage activities, specialist funds businesses and all other nonbanking divisions. Macquarie Bank then became a wholly owned subsidiary of Macquarie Group. The new organization began trading on the Australian exchange under the ticker symbol MQG, and Macquarie Bank CEO Allan Moss simply ordered new business cards: he became CEO of Macquarie Group. Why restructure? Macquarie wanted to separate its banking operations from its nonbanking operations in order to free the latter from Australias regulations on capital ratios, so those businesses could grow even faster than they already have. Although some investors worried that the banks aggressive approach is too much, too fast, Chairman David Clarke disagreed. In a statement to shareholders, he explained that Macquaries diverse international businesses are now growing faster than our Australian banking business, and a significant portion of Macquaries businesses, whilst financial services in nature, are not strictly banking. We have effectively outgrown the conventional banking regulatory model.
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Working in America
Most of Macquaries business in the U.S. is carried out through its subsidiary, Macquarie Securities (USA) Inc. Its business lines include commodity and energy markets, debt markets, electricity trading, emerging markets, energy capital, institutional stockbroking and research, natural gas trading, private equity funds management, real estate capital, real estate structured finance, residential community development and residential mortgages. Theres also Macquarie Capital Advisors, which handles mergers and acquisitions and restructuring advisory services in nine industry groups: infrastructure and utilities, natural resources, health care, security and defense, transportation, financial services, retail and consumer products, oil and gas and telecommunications, media, entertainment and technology (TMET). In April 2007, Macquaries restructuring and special services advisory arm got a boost from the acquisition of Giuliani Capital Advisors (yes, New York City mayor-turned-presidential hopeful Rudy Giulianis firm). GCAs specialty was advising distressed companies, and the deal added 100 investment banking professionals to Macquaries North American headcount.
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Finally, Macquarie Capital Funds manages listed and unlisted investment vehicles; Macquarie Electronics (USA) provides lease financing, used equipment sourcing and remarketing services to the electronics manufacturing industry; and Macquarie Equipment Finance provides IT finance, services and logistics.
Up, up, up
For the six months ending September 30, 2007, Macquarie Group reported earnings of $4.06 billion, a 38 percent increase over the same period in the prior year. International (that is, non-Australian) revenue totaled $2.1 billion, and international headcount rose 22 percent to just over 4,200. Profits were up 45 percent to $929 million, or just over $1 billion Australian dollars. In an upbeat statement to shareholders, CEO Allan Moss said the banks businesses were almost entirely unaffected by credit woes in the U.S. He added that Macquarie was in the midst of considering several bite-size acquisitions to its investment banking and trading divisions.
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On the tables
Worldwide M&A volume hit a record high in 2007, with announced deals totaling $4.5 trillion. Macquaries piece of the pie included 107 transactions worth $264.2 billion, according to Thomson Financial (now Thomson Reuters), placing the bank at No. 15 in worldwide announced M&A. However, Macquarie didnt make the top 25 in U.S. league tablesits worldwide ranking was the result of increased business in Europe, Asia, Australia and New Zealand.
GETTING HIRED
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Be up for anything
What youll encounter during the interview process could vary pretty wildly. One insider describes interviewing with a manager who just wanted to know if I could do the job. But expect at least two rounds of interviews, in which candidates meet both HR and executive staff. While some banking firms give their potential hires mathematical aptitude tests, Macquarie administers a psychometric assessment to their new hires. And expect to undergo a reference and credit check, tooalong with original documents such as your certificate, training certificates, driving license and bank statements.
Team up
At Macquarie, everyone is part of the team, and the office is full of friendly people. The corporate culture has an Australian feel in the sense that its very different from a typical Wall Street bank. Workers are very intense and intelligent, but theyre also more laid-back and tend to feel less constrained by hierarchy. But its not too laid-backworkers abide by a formal always dress code. Respondents report little trouble with the hours, which they call better than those at bulge bracket firms. But there may be a catch-22 when it comes to working overtime at the firm. Theres little pressure to stay late when youre not working on a live deal, but youre usually working on at least one live deal. More often than not, 60 hours is a good week, and 80 hours is on the heavy side. Weekend work seems to be a fact of life, but despite having to often work Sundays or Saturdays, employees very rarely [have to work] both days on a weekend.
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PRESTIGE RANKING
120 Broadway, 23rd Floor New York, NY 10271 Phone: (888) 957-5764 www.kpmgcorporatefinance.com
DEPARTMENTS
Advisory Services & Financial Opinions Global Infrastructure & Projects Investment Banking Private Equity Special Solutions
EMPLOYMENT CONTACT
See www.kpmgcorporatefinance.com/careers or e-mail your resume to uscorpfinrecruit@kpmg.com
THE STATS
Employer Type: Subsidiary of KPMG LLP Managing Director, New York: Bruce Altman No. of Employees: 1,800 No. of Offices: 10
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong Big Four in accountinghave not heard much about their finance area Lots of room to grow and try other opportunities Not much public market experience
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Vault Guide to the Top 50 Banking Employers 2009 Edition KPMG Corporate Finance
THE SCOOP
Masters of M&A
Working on public and private deals, KPMG Corporate Finance, a subsidiary of KPMG LLP, employs about 1,800 professionals who offer advice regarding mergers and acquisitions, public company takeovers, flotations and initial public offerings, among other areas. In 2007, according to Thomson Financial (now Thomson Reuters), KPMG ranked No. 1 in total number of M&A deals worldwide with undisclosed values and values up to $500 million, working on 442 transactions totaling $15.1 billion. Some of the deals KPMG Corporate Finance oversaw were the sale of Borders Groups sale of its New Zealand and Australian assets, the sale of Unilevers Foodsolutions Customer Frozen Products business to Simeus and the sale of online advertising group Neverblue Media Incorporated to Vertrue Incorporated. The group also worked with AMS Global, Griffith Enterprises and OBMedia, among other companies.
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Winning personnel
KPMG added a valuable member to its team in 2007, when Lorie Beers joined as managing director for the special situations advisory group. Shortly after Beers joined the company, she earned notable plaudits for her work developing a bankruptcy education program known as the Complex Financial Restructuring Program (CFRP). The American Bankruptcy Institute considered Beers work on the CFRP worthy enough to be awarded the Annual Service Award, which is the highest membership
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award the institute gives out. The CFRP is innovative because of its incorporation of complex hypothetical situations as teaching tools for investment banking professionals.
GETTING HIRED
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PRESTIGE RANKING
MG Corporate Finance 300 Madison Avenue New York, NY 10017 Phone: (212) 856-4000 www.cibcwm.com
BUSINESSES
Commodity Structured Products Equities Fixed Income & Currencies Investment, Corporate & Merchant Banking Real Estate Finance
UPPER
Teamwork is the normpeople on the whole are good to work with and personable
EMPLOYMENT CONTACT
www.cibcwm.com/careers
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong in Canada; excellent middle-market M&A practice Limited relevance outside of Canada Smart, good equity research Was strong, but suffering huge losses after selling US business to Oppenheimer
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Vault Guide to the Top 50 Banking Employers 2009 Edition CIBC World Markets
THE SCOOP
Canadian powerhouse
CIBC World Markets is the wholesale and corporate banking arm of CIBC (Canadian Imperial Bank of Commerce). Headquartered in Toronto, it provides credit and capital markets products, investment banking and merchant banking to clients around the world. In Canada, CIBC World Markets has led on more equity offerings and has advised on a greater volume of M&A transactions than any other Canadian firm. In addition, it is a top underwriter of Canadian investment-grade corporate debt. In the U.S., it focuses on investment, corporate and merchant banking services, real estate finance, and equity, commodity, fixed income and currencies products. Its U.S. operations are headquartered in New York with offices in cities across the country. The origins of CIBC World Markets stretch back to 1988, when the Canadian Imperial Bank of Commerce acquired a majority interest in Wood Gundy Inc, one of Canadas leading securities dealers and the foremost Canadian dealer internationally. The combination of CIBC capital and Wood Gundys underwriting reputation created one of the leading investing institutions in Canada. CIBC Wood Gundy formed the core of CIBC World Markets, which was created in 1997. CIBC World Markets offloaded a significant portion of its U.S. business in the last few months of 2007, selling its investment banking, equities, leveraged finance and portions of its debt capital markets businesses to Oppenheimer Holdings. In return for the sale of these divisions, CIBC received a stake in Oppenheimer, with warrants to buy one million exercisable shares at the price of $48.63 a share. In five years, CIBC will also receive a payment of at least $5 million a year based on the performance of the combined businesses. On Oppenheimers end of the deal, a warehouse credit line was provided for them by CIBC with as much as $1.5 billion for financing syndicated loans for U.S. middle-market companies.
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Though CIBC World Markets U.S. operations was diminished due to the collaboration with Oppenheimer, the company still has U.S. capablities in real estate finance, equity and commodity structured products, merchant banking, fixed income and currencies, oil and gas advisory, and lending.
Tough year
CIBC World Markets started 2007 off strongly, with the firms U.S. real estate finance business completing its largest commercial mortgage-backed securities (CMBS) offering to date, valued at $3.9 billion. CIBC World Markets acted as co-lead manager with JPMorgan on the offering and contributed U.S. $1.7 billion collateral to the deal, the largest collateral contribution in the groups history. CIBC World Markets was also the lead advisor, credit provider and underwriter to Fortis Inc. on its purchase of Terasen Inc.s gas distribution business from Kinder Morgan of Houston. The deal, valued at C$3.7 billion, was the largest domestic utility distribution acquisition on record. The companys fortunes quickly took an abrupt turn, though, as the unreliability of the subprime mortgage market started to rise to the surface. CIBC was forced to take write-downs of approximately C$750 million as a result of CDOs in the U.S. market. CIBC World Markets finished the year with a whimper, with its net income coming in at a disappointing C$601 million, a 7 percent decrease from the year before.
Subprime sweep
CIBC started off 2008 with a clean sweep, removing top executives and replacing them due to poor performance. In January, the Canadian bank announced that Brian Shaw would no longer be chief executive at CIBC World Markets and that Ken Kilgour, the chief risk officer who only spent a short eight months at the job, would also be replaced. The change was largely due to the banks disastrous $11 billion exposure in the failed U.S. subprime market, which has seriously hurt the credibility of the Canadian institution. (CIBC had the largest exposure of any Canadian bank to subprime mortgages.) In addition to taking write-downs in 2007, the firm is expected to announce more charges in 2008.
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Shaw was replaced in February 2008 by Richard Nesbitt, who formerly served as CEO of the Toronto Stock Exchange Group. Nesbitt is a former company insider, with 10 years of experience at CIBC Wood Gundy under his belt, and also a veteran banking executive due to his experience as president and CEO of HSBC Securities Canada. Chief Financial Officer Tom Woods became chief risk officer. Woods is a career CIBC man, with 30 years of loyalty and experience with the company under his belt. Woods job as CFO was filled by David Williamson, who previous served as president and CEO of Atlas Cold Storage. Although Nesbitt can do little to stop the inevitable charges that will result as a consequence of the firms involvement with the U.S. subprime market, he is expected to try to whip the companys expenses and workforce into shape. At TSX, he improved efficiency by making essential cuts in both personnel and costs. Many have expectations that he will make similar improvements with CIBC World Markets.
GETTING HIRED
Solid learners
Qualifications required for specific positions vary, but in general, the firm says it looks for self-starters with a solid work ethic, the ability to work in a team, a basic understanding of the financial services industry and the ability to learn quickly. Like its competitors, CIBC World Markets runs a very competitive hiring process, focusing its recruiting efforts on undergraduates at top schools in the U.S. and Canada (think Universities of Michigan and Virginia, Cornell, Columbia and other Ivies), and MBA candidates at select programs such as Wharton and Columbia. Interested candidates should check in with their career services centers for postings.
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39
PRESTIGE RANKING
222 West Adams Street Chicago, IL 60606 Phone: (312) 236-1600 Fax: (312) 368-9418 www.williamblair.com
BUSINESSES
Asset Management Equity Research Institutional & Private Brokerage Investment Banking Private Capital
THE STATS
Employer Type: Private Company President & CEO: John R. Ettelson No. of Employees: 1,000 No. of Offices: 10
KEY COMPETITORS
FBR Capital Markets Keefe, Bruyette & Woods Piper Jaffray Companies Thomas Weisel Partners
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UPPERS
Being exposed to many deals Extremely high compensation
DOWNERS
Deal size is limited Training overall is less than at bulge bracket banks
EMPLOYMENT CONTACT
www.williamblair.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition William Blair & Company
THE SCOOP
Chicago pride
In addition to investment banking, William Blair & Company provides a range of services that include asset management, equity research, wealth management, institutional and private brokerage, and private capital services. William Blair has 11 offices around the world, but 95 percent of its employees remain based in the Chicago office. The firm says this unusual structure means a high degree of internal communication between employees, and the ability for different groups to share knowledge and expertise. Heavily employee-owned, William Blair has 1000 employees (of whom about 175 are principals) and more than $182 million of equity capital. Headquartered in Chicago, the firms additional offices are in Boston, Indianapolis, Hartford, New York, San Francisco, London, Shanghai, Tokyo, and Zurich. The firms roots go back to 1935 when Chicagoan William McCormick Blair opened a firm with his partner Francis Bonner; from the start, Blair Bonner & Companys mission was to finance the expansion of local Chicago companies during that citys boom. In 1941, Bonner decided to relocate to Washington, but Blair, a loyal Midwesterner, had no intention of leaving his home. Blair renamed the firm after himself and soon became a leader in local business finance and investment advice for many of Chicagos wealthiest families. Chicago profited from William Blair & Companys services, and as the citys local businesses grew into major companies, the firm profited from them.
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Backed by research
Research has been a cornerstone of William Blairs business since its inception. Because the firm was founded in the wake of the Great Depression and six years after the 1929 stock market crash, its early investors were understandably anxious. William McCormick Blair sought to reassure them by instituting in-house standards that were even tougher than those of the Securities and Exchange Commission, and by creating a research department that would study each investment before making a recommendation. Today, the firms research department, based in Chicago, tracks over 350 companies. Its sector analysis aligns with the investment banking departments industry groups, and research teams work closely with other areas of the firm.
Change of plan
In 2007, William Blair announced that it had decided to reorganize its private client business in order to concentrate on the highnet-worth and ultra-affluent client base. The private investor division, corporate and executive services, and the openarchitecture investment platform known as William Blair Select were folded into the firms investment management effort and from here on out are under the leadership of Michelle Seitz, the head of the IM team. In a statement, President and CEO Ettelson
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noted that Seitz had been in charge of the investment management division for six years, during which she took assets under management from $11 billion to more than $47 billion. In a separate statement, Seitz said that William Blair was better equipped to serve this sophisticated and important client base. She added: There are few firms that can rival our longevity, commitment, and global intellectual investment capital in this market segment.
New blood
In September 2007, Patrick Sheppard became the COO of William Blairs investment management division. An industry vet with more than two decades of experience, he had previously been president and COO of The Boston Company Asset Management, a Mellon firm. He also held management positions at Scudder Kemper Investments and Scudder, Stevens & Clark.
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Also new to William Blair is John Brennan, a former president at Bank of Americas Illinois division. Brennanwho began heading the private wealth management division at William Blair in February 2008also has more than two decades of experience in the biz and was responsible for a portfolio of $52 billion as well as 700 staffers in his BofA position. BofA had replaced Brennan in late 2007; while he could have stayed on with the company in another capacity, the Chicago Tribune reports that he likely would have had to leave Chicago. I have nothing but positive things to say about Bank of America, he told the newspaper. But this allows me to do something I really want to do and allows our family to stay in Chicago. William Blairs investment management division has $58 billion in assets under management or supervision, $17 billion of which is in the affluent-investor effort headed by Brennan, according to the Tribune.
What an honor
Crains Chicago Business named William Blair one of the top-20 best places to work in the Windy City; the firm placed No. 7 on the list, which is featured in a March 2008 issue. The rankings are based on information about benefits, workplace life and environment, employee feedback and other data. Any Chicago company with more than 100 employees was eligible. But the honor from Crains wasnt the only recent William Blair accolade. Barrons ranked the company No. 31 on its list of the 2007 top wealth managers in the U.S. And, in Institutional Investors annual ranking of the 300-largest money management firms in the U.S., William Blair placed No. 93, moving up seven spots from the previous year.
New home?
In August 2007, William Blair signed a letter of intent to lease space in a new 1.1 million-square-foot office tower on the west bank of the Chicago River. And by February 2008, papers were speculating that the bank had formally committed to the deal, agreeing to rent out 340,000 square feet in a 50-story tower on Lake Street, meaning that its Adams Street headquarters could soon be a thing of the past. Not ready to pack yet, thoughthe Lake Street building isnt expected to be complete until June 2011, according to Chicago Real Estate Daily.
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Vault Guide to the Top 50 Banking Employers 2009 Edition William Blair & Company
William Blairs commitment as the first tenant is simply enough for Hines, the developer, to begin construction on the new tower. William Blair currently leases about 300,000 square feet at their Adams Street location.
GETTING HIRED
The hiring process at William Blair is much more personable than at other investment banks. Most candidates have one or two on-campus interviews followed by a Super Saturday at the firms Chicago headquarters. This Super Day involves eight interviews, and candidates are invited to dinner the night before with other analysts and candidates. On-campus interviews are normally with the analyst manager and a senior banker, and on-site meetings are with a mix of associates, VPs and principals. Super Saturday interviews are normally about 30 minutes each. Luckily, very few technical questions are asked to interviewees from liberal arts schools. Insiders say the difficulty of questions varies depending on the style of the interviewer. Some are asked to comment on the general environment of the M&A market or to walk them through financial statements. Other interviewers simply want to know about you as a person. Questions also vary depending on your background, specifically, job experience or major in school. Generally, questions tend to be very fit-focused. Some believe not enough questions are asked to explore someones willingness to be a great analyst. Overall, insiders say William Blair interviewers come up with a good mix between technical and situational questions.
To be required
Insiders say participation in an internship, although an excellent way to receive an offer for full-time employment, currently is not essential. But as William Blair continues to move its way up the ranks of prestigious investment banks, internship positions may become more and more coveted. One source says, Going forward, it will be nearly required to do an internship prior to be hired full-time. The firm has recently expanded its internship program, which has placed an added level of importance on those candidates who come through the intern ranks. Historically it was not too important, says one insider of William Blairs internship program. But it is becoming very important. In the near future, the firm will hire most of its class from its summer intern pool. Insiders expect the revived program to be an excellent training program and feeder into the full-time analyst program.
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On equal footing
Despite some old school guys who arent as collegial, most managers at William Blair treat analysts more like colleagues than resources. Partners communicate directly with analysts, and junior analysts are given a great deal of responsibility. A contact says, First-year analysts are entrusted with the great responsibility of interacting with clients, chaperoning facility visits and other significant responsibilities only VPs at bulge brackets experience. In this fairly open atmosphere, managers are very hands on but give you a lot of responsibility and direction, making William Blair a great learning environment. Insiders say there are some abrasive personalities, but for the most part, managers are friendly and fun, and promote a fraternity-like atmosphere.
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Vault Guide to the Top 50 Banking Employers 2009 Edition William Blair & Company
Cubicle-free environment
William Blair insiders are happy to report that the firms offices have no cubicles! Analysts are given offices to share with one other person. There are two analysts to one officeone first-year and one-second year. And third-year analysts get their own offices. Most consider the office perk an extremely beneficial luxury, especially during conference calls and private equity interview season. In addition, there are plenty of conference rooms available for dinners, and there is even a room for napping for those pulling all-nighters. The firms Chicago headquarters is decorated in rich wood tones and marble, and offices contain very nice furniture and settings. Some complain of old computer and subpar furniture, but most are living happily ever after in this cube-free land. The dress code at William Blair is on the formal end of business casual. There are no suits and ties required, but polos and khakis are not allowed, either. For women, there are no sleeveless tops or open-toed shoes. Bankers typically sport a notie look, but otherwise are always dressed in suit attire. The goal is not to stand out. When meeting with clients, the look is more business professional and many wear suits. Casual attire is allowed on weekends.
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VAULT TOP 50
40
PRESTIGE RANKING
777 East Wisconsin Avenue Milwaukee, WI 53202 Phone: (414) 765-3500 Fax: (414) 765-3633 www.rwbaird.com
BUSINESSES
Asset Management Equity Capital Markets (Investment Banking, Research, Institutional Equity Services) Fixed Income Capital Markets Private Equity Private Wealth Management
UPPERS
Tremendous interaction with senior bankers Strong work ethic
THE STATS
Employer Type: Private Company Chairman, President & CEO: Paul E. Purcell Revenue: $729 million (FYE 12/07) No. of Employees: 2,300 No. of Offices: 85
DOWNERS
Inefficient management You will work a lot
RANKING RECAP
Quality of Life #10 Selectivity #15 Training #16 Treatment by Managers #17 Overall Satisfaction #18 Best Employers to Work For #18 Compensation #19 Hours #19 Offices Diversity #16 Diversity with Respect to GLBT #18 Diversity with Respect to Women #19 Overall Diversity #19 Diversity with Respect to Minorities
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EMPLOYMENT CONTACT
See careers at www.rwbaird.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong niche player Third-tier bank Good regional bank Never lead bank on deals
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Vault Guide to the Top 50 Banking Employers 2009 Edition Robert W. Baird & Co.
THE SCOOP
Kudos to you
Baird picked up its fair share of awards in late 2007 and the first half of 2008. For the fifth consecutive year, the firm was recognized as one of Fortunes 100 Best Companies to Work For. In the 2008 edition of the list, Fortune ranked Baird No. 39. In addition, Buyouts magazine named Baird the Middle Market Investment Bank of the Year for its performance in 2007, and The M&A Advisor handed Baird two Manufacturing Deal of the Year recognitions: one for its work advising LKQ Corporation a Chicago-based company that supplies recycled original equipment manufactured parts to the vehicle aftermarketon its acquisition of Keystone Automotive Industries; and another for its role as advisor to Wilton Industriesthe Chicago-based food crafting and housewares companyon its sale to EK Success, a portfolio company of private equity firm GTCR. The deal, which closed in August 2007 despite the volatile economy, ranked as one of the largest transactions in the crafts and housewares industries.
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Declaration of independence
Since 2004, Baird has been a wholly independent, employee owned company. The firm was founded in 1919 as the securities arm of the First Wisconsin National Bank, led by partner Robert Wilson Baird. A few years later, he took over as president of First Wisconsin. In 1934, when regulatory changes prompted banks to divide their securities businesses from their core banking operations, Baird oversaw the reorganization of First Wisconsinand the spin-off of its securities division, which became The Wisconsin Company. In 1948, The Wisconsin Company became the first Wisconsin brokerage to obtain a seat on the New York Stock Exchange; that same year, William Brand replaced Robert W. Baird as its president, and the firm took its outgoing founders name. A period of growth followed, as Baird added asset management and public finance services to its roster. As Wisconsins top investment bank, the firm proved a tempting target for Northwestern Mutual, which purchased a majority stake in Baird in 1982. Five years later, Baird expanded again, establishing its private equity business. Current chief executive Paul Purcell became president in 1998, and promptly bought London-based investment boutique Granville plc, ushering in an era of new international opportunities. He took the reins as CEO in 2000, when previous leader Fred Kasten stepped down. Since taking the top spot Purcell has pushed for continued growth and total independence, forming Baird Advisors and Baird Venture Partners and leading the firms 2004 repurchase of majority interest from Northwestern Mutual. Hes widely credited with transforming Kastens regional business model into a nationaland internationalmiddle-market player.
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Focus on tech
Paul Purcells thirst for expansion was evident in the first half of 2008, as Baird boosted its presence in several regions and industries. In January, Baird opened its second San Francisco Bay area office, smack in the center of Silicon Valley, and declared it a hub for its growing technology investment banking team. The new office, in Palo Alto, Calif., will serve key high-tech clients as well as private equity and venture capital firms on the West Coast. Managing Director John Moriarty, a 20-year investment banking veteran who has advised on more than 185 transactions during his career, was named head of the location. Baird has been funneling resources into its technology sector capabilitiescurrently, the firm has seven equity research analysts covering over 100 tech companies, and has advised on more than $5.7 billion of capital raising and M&A transactions in the tech sector since 2003. Steve Booth, director of Bairds investment banking group, said the firm will widen its network of contacts and deepen relationships with current and prospective clients in Silicon Valley. Then in April 2008, Baird added a new managing director to its financial sponsor investment banking team, which is based in the firms Atlanta, Boston, Chicago and London offices. Jeffrey M. Seaman joined the Chicago office, and was charged with building the firms financial sponsor client list and generating more private equity dealswhich currently make up half the firms M&A activity. Since 2004, the Baird financial sponsor investment banking group has worked on over $5 billion in equity and M&A transactions.
Middle-market pros
With its firm focus on the middle market, in 2007 Bairds investment banking teams played a role in 57 deals worth a total of $12.4 billion, up from 44 deals worth $4.6 billion in 2006. According to Thomson Financial (now Thomson Reuters), in 2007, Baird ranked No. 14 in announced U.S. middle-market M&A deals with undisclosed values and values up to $100 million in 2007. For deals up to $50 million, the firm ranked No. 25.
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The firms recent transactions include advising Chicago Partners LLC on its $73 million sale to Navigant Consulting, assisting Technical Concepts Holdings $445 million sale to a division of Newell Rubbermaid, advising on the sale of Primrose Holdings to the Roark Capital Group, helping Meade Instruments Corporation carry out the sale of its Simmons division to Bushnell and advising TopWorx on its sale to Emerson Electric Company.
A lasting legacy
Besides founding the firm that now bears his name, Robert Wilson Baird left his mark on the entire securities industry. He was a founding member of the National Association of Securities Dealers (NASD), created in 1939 as the regulatory agency for all securities, equities, options and corporate bond trading in the U.S. Baird also served as the NASDs third national chairman.
GETTING HIRED
Mostly Midwest
Baird recruiters screen a large number of candidates to locate those that fit best with the firm, with an eye toward the cream of the crop. Like any investment bank, Baird subjects you to the standard, rigorous interview process, a second-year analyst says. While the emphasis is placed on fit, solid technical skills are still important. The firm recruits at top campuses, primarily in the Midwest and on the East Coast for both analyst and associate positions, but each Baird office will typically recruit out of schools within a fairly close proximity to its location. For MBAs, we target the top 20 programs across the country, a source says, adding that given our Midwest presence we have many Kellogg and University of Chicago alumni. The Big 10 schools and Notre Dame are represented as well. Candidates who dont attend a target school arent out of luck, however. Baird also actively evaluates in-bound applications from the web site, explains an insider.
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Hands-on experience
Baird has both undergraduate and MBA level interns, a vice president says, though there are fewer internship opportunities than full-time positions annually. Internships often lead to full-time offers, but sources agree that interning at Baird is absolutely not a prerequisite to getting a job. One former intern says, I had three interviews for a summer internship with an analyst, associate and a vice president. After the summer, I was offered a full-time position. Another source notes, Interns participate in a truncated orientation and training program and then begin work on live deals and opportunities. They should expect to participate on all types of transactions including sell side and buy side advisory work and equity underwritings. The goal is for interns to gradually learn the tasks and responsibilities of a full-time employeeand for one recent hire, it was a chance to prove I could work hard and perform well.
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41
PRESTIGE RANKING
Gleacher Partners
KEY COMPETITORS
Dresdner Kleinwort Evercore Partners Greenhill & Co.
660 Madison Avenue, 19th Floor New York, NY 10021 Phone: (212) 418-4200 Fax: (212) 752-2711 www.gleacher.com
BUSINESSES
Asset Management Fund Advisory M&A Restructuring
UPPER
Pays well
EMPLOYMENT CONTACT
See careers under contact us section of www.gleacher.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Superstar boutique, provides great connections; for people who could have gone to Goldman but wanted a boutique culture Not as good as they used to be Solid Very aggressive, tough place to work
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Vault Guide to the Top 50 Banking Employers 2009 Edition Gleacher Partners
THE SCOOP
Sister company Gleacher Shacklock operates an international office in London. Gleacher used to own Gleacher Shacklock, but in July 2005 the London firm formed an independent company owned by its U.K. staff. Reporting on the split, Financial News explained, As an independent, Gleacher Shacklock will no longer have to share fees derived from exclusively European work with its U.S. parent. One reason behind the separation is to enable the two to receive fees that are more closely aligned with the work they do, enabling them to provide better incentives for staff. The business pub supplies some back story: This is the second time the issue of ownership has led to changes at Gleacher Partners European arm. Justin Dowley, former head of European investment banking at Merrill Lynch, and Michael Pescod, former head of corporate finance at law firm Slaughter & May, were forced out of what was then Gleacher Partners in 2003, following a dispute with Eric Gleacher over who should own and manage the London business.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Gleacher Partners
One month later, Gleacher and Merrill Lynch were retained by Atlanta-based poultry producer Gold Kist to help defend the company against a $1.03 billion hostile takeover bid from rival Pilgrims Pride. Gold Kist and its team alleged that Pilgrims Prides effort to add nine of its own officers to the Gold Kist board would violate a section of the Clayton Act, which forbids directors of companies of a certain size to sit on competitors boards. By not disclosing this fact to stockholders, Gold Kist argued, Pilgrims Pride broke Securities and Exchange Commission rules. After two months of wrangling, in December 2006, Gold Kist directors unanimously accepted a $1.1 billion acquisition offer from Pilgrims Pride, making the new entity the worlds leading chicken company in terms of production.
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GETTING HIRED
Extremely selective
According to Gleacher, it recruits on a limited basis and looks for a highly select group of individuals with outstanding analytical abilities, strong communication and interpersonal skills, high personal integrity and an ability to thrive in a fast-paced and entrepreneurial work environment. Insiders agree, ranking Gleacher among the most selective firms in terms of hiring. According to an associate, individuals from Ivy League schools, top undergraduate programs and selected top-20 MBA programs often get the most consideration. Perhaps because of the firms relatively small size and high selectivity, the interview process is very comprehensive. Their combination of quality and focus creates a tremendous opportunity for junior professionals to make an impact in addressing the most complex and challenging situations, according to the firm. Gleacher participates in recruiting for analysts and associates for its New York and London offices, offering positions in mergers and acquisitions, divestitures, takeover defense, special committee assignments, leveraged buyouts, corporate restructurings and bankruptcies, execution and oversight of the firms principal investments and joint ventures or partnerships. Candidates interested in working for Gleacher should contact the firms New York offices directly.
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Happy on payday
The companys culture is changing in the U.S., according to one associate in the Atlanta office, who adds that Gleacher is morphing substantially into a much more aggressive middle-market type of organization. Working at Gleacher yields employees standard fare in terms of lifestyle perks, according to one source who praises the summer program for new hires, which takes place in Toronto over several weeks time. Offices are generally well liked by employees, and respondents report that the firm has a casual dress code, except when meeting with clients. Although insiders are split with respect to treatment by management, an associate relays that manager treatment at Gleacher tends to be situation-specific. That contact, whos very happy with the way his superiors treat him, praises the diversity of his U.S.-based group, saying, Our U.S. platform is a mix of professionals from many different backgrounds. Other respondents, though, say that Gleacher needs improvement in the areas of diversity with respect to women and minorities. Insiders do quite well in the money department, with sources reporting annual bonuses significantly exceeding their annual salaries. An associate notes that Gleacher realizes it needs to pay competitive bonuses to retain top performers, and praises the firms wealth accumulation plan, which allows associates to defer pre-tax bonus dollars into various investment vehicles. But they work hard for their money. An analyst notes that he works between 60 and 70 hours per week, and he works weekends often. Another contact, who reports working between 90 and 100 hours per week, complains that its difficult to make a blanket statement on hours, but conditions are difficult today. He adds that generally the market conditions dictate the hours worked, noting that the long hours also include travel related to transaction processing and marketing.
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42
PRESTIGE RANKING
245 Park Avenue, 32nd Floor New York, NY 10167 Phone: (212) 880-7300 Fax: (212) 880-4260 www.moelis.com
BUSINESSES
Corporate Finance Mergers & Acquisitions Advisory Moelis Capital Partners Restructuring Advisory
THE STATS
Employer Type: Private Company CEO: Ken Moelis No. of Employees: 125 No. of Offices: 4
UPPERS
Bonuses are at a premium to the Street Challenging and interesting work
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DOWNERS
Nights and weekends necessary No formal diversity programs
EMPLOYMENT CONTACT
E-mail: recruiting@moelis.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Up-and-coming, hiring like crazy Sweatshop, lots of egos Moelis is the man Never heard of them
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THE SCOOP
not. Moelis ultimately tendered his resignation to UBS on June 30, 2007; he announced the launch of Moelis & Company the very next day. UBS would not comment on his departure, saying only that he would not be replaced at the investment bank. Meanwhile, Moelis put his legendary Rolodex to work, recruiting former DLJ and Drexel bankers to join his new firm. He also poached from UBS, hiring Navid Mahmoodzadegan (global head of the media group) and Jeff Raich (joint global head of M&A) as managing directors.
Equity-friendly
In September 2007, just two months after the firm was born, it was rumored that Moelis had raised $1.8 billion for its first fund. Moelis does not call itself a private equity firm per se (the phrase it prefers is an investment bank with the ability to invest alongside its clients), but its fundraising prowess exceeded analysts expectations. A final close for Moelis Capital Partners Opportunity Fund I, LP has been set for fall 2008. Moelis has also kept silent about which sectors it will target and how much equity it will invest in typical transactions. Other questions remain: Moelis has revealed that institutional investors are involved in the fund, but has not provided any more detail about other investors.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Moelis & Company
Advisory heats up
Operating under the supervision of a registered broker dealer, the Moelis advisory groups were able to start working on several assignments in the second half of 2007. Within a day of commencing operations, the Moelis team acted as Hiltons advisor on its $26.5 billion sale to private equity giant Blackstone. Moelis was also tapped to co-advise mall retail giant The Finish Line Inc. on its acquisition of shoe retailer Genesco. (The Finish Lines other advisor? Moelis former employer, UBS.) In October, Moelis teamed with UBS once more, providing strategic advisory services for the renegotiation of a multiyear programming contract between CBS Radio and station operator Westwood One. In another media assignment, Moelis and Citi were hired in November 2007 as co-advisors to Spanish-language media company Entravision Communications. Entravision was exploring possible sale options for its outdoor advertising unit, Vista Media, which includes over 10,000 billboards in New York City and Los Angeles. In December 2007, Moelis and Deutsche Bank advised Las Vegas-based Cannery Casino Resorts on its announced $1.8 billion sale to Australias largest casino operator, Crown Ltd.
Continued expansion
Moelis opened its second office on the East Coast in October 2007 with the hire of managing director Robert Crowley, another UBS steal who served as the Swiss banks global head of high-yield capital markets. The beginning of 2008 brought further growth, as Moelis hired 10 managing directors within the first half of the year from a variety of firms. These MDs brought expertise from several industries, including aerospace and defense, automotives, chemicals, industrials, and consumer and retail. In addition, Moelis rolled out its restructuring practice, led by Thane Carlston and Bill Derrough, former co-heads of the recapitalization and restructuring group at Jefferies & Company. Most recently, Moelis opened a Midwest franchise in Chicago, hiring Ken Viellieu, the former head of Midwest investment banking at Bear Stearns.
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GETTING HIRED
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To find its future financial wizards, Moelis looks to all major undergraduate colleges and major MBA schools. These include University of Pennsylvania, University of Michigan, Stanford, UCLA, Harvard, University of Chicago, Claremont McKenna, Yale and Cornell. For slots in the New York office, Moelis formally recruits at the undergrad level from Penn and Michigan but is open to other candidates as well. In addition, contacts say that the Boston office has spoken to people from Harvard, but nothing formal has been set up. Although the firm has separate recruitment efforts for each offer, every candidate we talk to is given the opportunity to tell us which office they would prefer.
Small-firm process
Moelis interview process tends to be more flexible than most of the major banks, because its still a small organization, which means it can move quickly. Incoming analysts typically meet at least four people, including an analyst, associate, vice president and a more senior member of the firm over the course of two interviews. Candidates for more senior positions may meet up to 20 different bankers. Others may have closer to 10 interviews. In terms of questioning, candidates should be prepared for both behavioral and technical topics. A contact says, Being a new and smaller firm, we are very concerned with personality and fit as well as a strong understanding of finance. It is important for us to know that the candidate has put in the time to understand finance and accounting and that they are genuinely interested in a career in finance. Questions about past experience and client relationships may also come up.
Get a leg up
A summer internship with Moelis & Co. certainly provides a leg up for the next year. Participation in these programs for those seeking full time employment is highly encouraged. Although most sources agree that it is not impossible to get hired full time without performing an internship, it sure helps you get ahead of the competition. As it is with any investment bank, a summer internship is the best way to get an offer here. The internship program provides both the firm and intern the opportunity to determine suitability or fit. Its also a great opportunity [for the intern] to see what the work environment is like and better understand the culture. If you dont go the Moelis summer route, note that some investment banking experience is preferred for all full-time positions. In other words, a banking internship somewhere is highly recommended if you want to be a full-timer.
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Ground-level opportunity
Moelis insiders wake up each morning excited about coming into the office, likely due to their firms first-rate culture and belief that theyre part of the fastest growing firm on Wall Street. A career at Moelis is a great opportunity to see a new firm being built from the ground up. Not surprisingly, theres tons of momentum at this firm, which prides itself on having no politics and lots of fun. In fact, a contact says that this is the most fun Ive had in my 15 year career on Wall Street. There is huge upside potential to working at Moelis such as the chance to interact with senior bankers and clients, and the opportunity to be involved in the best deals and to do banking and private equity. At this entrepreneurial firm, teamwork is critical. Moelis even has firmwide calls every few weeks to discuss our current business and how deals are progressing in order to keep everyone in the loop. Fast-growing and first-rate translate into the corporate culture being intense at times. At Moelis, you cant get away with poor-quality work and easier lifestyles. Moelis is an exciting place where people expect you to work very, very hard and learn fast. A contact says, This is not a place for the faint of heart or sensitive types. The good news is that all this hard work pays off, as analysts learn a tremendous amount. You will not spend 75 percent of your time updating price charts and running internal memos. Bankers at all levels have the opportunity to work on projects that have real meaning to clients. Moelis is a work hard, play hard firm thats still small, so you know everyone. One insider says, We get to know our support staff
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very well so everyday activities such as printing and IT help are never as difficult as they are at larger banks. This meritocratic firm is filled with a unique blend of personalities that enjoy their time and experience spent at work. At Moelis, everyone is treated as equals, and the firm is becoming more diverse every day. Women have a very prominent role.
Purposeful hours
Moelis bankers log long hours, but most are content with the requirements because of the challenging and interesting work. Professionals here are very driven and like what they do, so they tend to work hard by choice. Many bankers log between 80 and 90 hours per week, including weekends. Most junior people below the VP level are here past 10 p.m. every weekday. And some work every weekend, both Saturday and Sunday. But theres no premium on face time, and people work intelligently, always trying to minimize unnecessary work. And when youre working late, its almost always because you need to get something to the client. The firms strong deal flow makes nights and weekends necessary, but bankers have the flexibility to work from home on weekends. A contact says, Im working harder than my peers at other firms, but Im helping to build a successful business and my contributions have a meaningful impact on the firm. Other insiders say that there is light at the end of the tunnel, because hours substantially improve as you get more senior. Even junior bankers may see a decrease in hours in the near future, as hours should come down as we fill our junior ranks this summer.
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theres no real dress policy at the firm. Nobody really enforces a strict dress code. Instead, everyone uses their best judgment. Moelis & Co.s New York crew recently moved into new office space that is very nice. The offices are a good size, and there are a few great common areas with big flat screen TVs. Theres also a very nice kitchen to have snacks and dinner. Similarly, the Los Angeles office is nice and Moelis is expected to move into new office space as well by July 2008.
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257
VAULT TOP 50
43
PRESTIGE RANKING
JMP Securities
KEY COMPETITORS
Cowen and Company FBR Capital Markets Jefferies & Company Piper Jaffray Companies Thomas Weisel Partners
600 Montgomery Street, Suite 1100 San Francisco, CA 94111 Phone: (415) 835-8900 Fax: (415) 835-8910 www.jmpsecurities.com
BUSINESSES
Investment Banking Research Sales & Trading
EMPLOYEMENT CONTACT
See careers under about JMP Securities at www.jmpsecurities.com
THE STATS
Employer Type: Subsidiary of JMP Group Chairman & CEO, JMP Group: Joseph A. Jolson Revenue: $97.87 million* (FYE 12/07) Net Income: $10.13 million* No. of Employees: 200 No. of Offices: 4 * JMP Group Inc. Operating net income pro forma for IPO
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great co-managers; good energy focus Small boutique, reasonably stable Doing well despite the market Virtually unknown
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THE SCOOP
The numbers
For fiscal year 2006, parent JMP Group reported revenue of $86.8 million. For fiscal 2007, JMP Groups total revenue reached $97.9 million, while operating net income (adjusted for its IPO) totaled $10.1 million. For the first quarter of 2008, JMP Group reported $901,000 in operating net income on revenue of $19.8 million. Due to the poor capital markets conditions that challenged many investment banks during the quarter, this result was a large departure from the first quarter of 2007 when the firm booked $2.5 million in operating net income on $21.9 million in revenue. However, JMP Asset Managements client assets under management at the end of the quarter were up to $356.7 million, compared to $237.3 million at the end of 2007 and $224 million at the end of the first quarter of 2007.
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Belief in boutiques
Joseph A. Jolson, Carter D. Mack and Gerald L. Tuttle Jr. founded JMP Group in 1999 and opened JMP Securities at the start of 2000. The trio had previously worked together at Montgomery Securities, which was purchased in 1997 by NationsBank Corp. and now operates as part of Bank of America. Following the sale of Montgomery, Jolson, Mack and Tuttle decided to jump ship and create their own investment bank. They didnt like watching top-quality independent research boutiques get swallowed up by big commercial banks and figured that the best solution was to create their own firm. Instead of trying to compete for business with bulge bracket banks focused on large corporate clients, the trio pledged to serve small and midsized companies, which were becoming increasingly ignored by Wall Street conglomerates. To get the firm off the ground, CEO Jolson employed some unusual business practices. In the early years, he capped all base salariesincluding his ownat $100,000. He also encouraged multitasking: He personally covered several specialty finance companies for JMP Securities research arm, while simultaneously getting JMP Asset Management running. In 2002, he attracted former Montgomery Securities partner Craig R. Johnson to help build the firms equities business. And, indeed, JMP grew by leaps and bounds, nearly tripling headcount to more than 200 in the ensuing six years. JMP also made an early decision to avoid focusing solely on emerging growth opportunities. In contrast to many of its competitors, the firm organized its research department to cover old economy sectors like financial services, as well as more cutting-edge industries like high technology. Today, Jolson remains CEO of JMP Group and Johnson serves as its president; both men attend to the operation of JMP Asset Management and its asset-gathering strategy. Co-founder Mack and Mark L. Lehmann serve as co-presidents of JMP Securities; Mack directs investment banking, and Lehmann oversees equities.
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Impressive performance
Equity research is the backbone of JMP Securities. By the middle of 2008, the firms research department had 226 companies under coverage, mostly small-cap and mid-cap stocks. JMPs equity sales and trading platform provides insight to more than 500 routine institutional clients, and the sales and trading team works in tandem with research staff. JMP traders are active in more than 700 stocks, and the firms capital markets group offers syndication, marketing, execution and distribution of equity offerings. Underlining its prowess in research, three JMP Securities equity research analysts were honored in The Wall Street Journals 2007 Best on the Street survey. Based on total return measures, each JMP analyst ranked among the top five stock pickers in his or her respective coverage area (consumer and specialty finance, specialty retailers and services, and business and industrial services). Overall, JMP Securities ranked No. 18 out of 85 equity research providers. The investment banking group at JMP is divided into coverage groups targeting the firms six core industries. Services offered include mergers and acquisitions, divestitures, corporate restructurings and recapitalizations, valuations and fairness opinions, public stock offerings, PIPEs and registered direct offerings and private placements of equity and debt securities. In 2007, JMP completed 71 investment banking transactions, including 35 public equity offerings raising $4.5 billion, 17 private securities offerings raising $761 million and 19 strategic advisory assignments totaling $2.1 billion in value. In 2006, the firm closed 75 transactions with an aggregate value of $8.2 billion.
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private companies connected to these industry areas. Held in San Francisco, the success of the conference has been credited with helping JMP Securities set itself apart from the boutique pack.
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GETTING HIRED
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PRESTIGE RANKING
The Equitable Building 787 Seventh Avenue, 4th Floor New York, NY 10019 Phone: (212) 887-7777 Fax: (212) 541-6668 www.kbw.com
BUSINESSES
Equity Capital Markets Fixed Income Capital Markets General Advisory M&A Advisory Mutual Thrift and Insurance Company Conversions Structured Finance
UPPER
Culture is excellent," very supportive and collegial
DOWNER
To work here, you have to be geared to a small firm and its reach and resources
THE STATS
Employer Type: Subsidiary of a Public Company Ticker Symbol: KBW (NYSE) CEO: John Duffy Revenue: $427.53 million (FYE 12/07) No. of Employees: 75 No. of Offices: 9
EMPLOYMENT CONTACT
www.kbw.com/contact_us.html
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong boutique investment bank Small deals Excellent franchise in niche areabanking for insurance and financial institutions Not well known, but good firm
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THE SCOOP
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Nationally notable
Keefe, Bruyette, and Woods has had its fair share of attention over the past years with the debut of its IPO billed as an amazing comeback from overwhelming odds. It may have taken six years to fully rebound, but it appears that KBW is finally getting the credit it deserves for sticking it out in the face of adversity. KBWs CEO Duffy was recognized in 2007 by Investment Dealers Digest as the Mid Market Banker of the Year for his work in notable finance transactions and the successful IPO debut. Duffys losses on September 11th were more than just economichis 23-year-old son Christopher was among those who lost their lives in the devastating attacks. As a result of his tenacity and perseverance in rebuilding his company, President Bush honored Duffy in 2007s annual State of the Economy address. Many thought KBW was finished, Bush said. But not John Duffy.
Prize fighters
Keefe, Bruyette, and Woods may be a small fish in a big pond, but recent accolades bestowed upon the investment bank show that for a firm of its size, KBW is at the top of its game. For two consecutive years now, KBW has dominated the categories in
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Institutional Investors Best of the Boutiques survey. In 2007, the firm won top honors in five of the seven subsectors surveyed, including Large Cap Banks, Mid-Cap Banks, Brokers & Asset Managers, Consumer Finance, and Life Insurance. KBW also won awards in 2007 for its research analysts, three of whom were named Best of the Street by The Wall Street Journal. The three honored analysts were Bain Slack, who ranked third in the ultra-competitive banking sector, Jared Shaw, also ranked third in the thrifts category, and Jukka Lipponen, who gained recognition as an outstanding analyst in the life insurance category. KBWs director of research, John Howard, affirmed that the work these analysts do is essential to the companys business as a whole, saying that Research is the heart of our firm.
GETTING HIRED
KBW is specialized due to its financial services focus, and for that reason, it can be tough to get in. While the firm makes significant efforts to locate and hire good undergrads and MBAs, our size and scope obviates many traditional recruiting programs, says one insider who explains that KBW is very small, and focused on the banking industry only. The contact adds, As a result, its not the kind of place where a regular stream of new analysts and business school interns come through. In general, observes another source, hiring tends to be done on an as needed basis, and the truth is that you really need to know someone or have some connection to get in the door. Yet another insider confirms, explaining that hiring tends to be from within the industry, based on prior relationships or on having amassed a major track record at another firm focusing on the financial industry. Still, sources say that there are plenty of KBW employees that knew no one initially. For those with the energy to actively hunt down a position with KBW, insiders have a few words of advice. First, one source says, youll want to know exactly what we do, what our business units are, and who the important people in them are. Then contact those people and ask what kind of needs they have. If, on the other hand, you dont have that much energy, you can use the KBW web site and send a message to the departments. Individuals who take the latter route are less likely to get a response. Insiders report that KBW classically likes people who are smart and easy to get along with. Humility probably helps more than bravado, adds a source. For individuals interested in sales or trading, contacts advise, humor helps. Those looking at research or corporate finance should have a willingness to work extraordinarily hard. Interviewing is a thorough process that involves a variety of questions with nothing thats prescripted.
Collegial culture
The firms culture is excellent, very supportive and collegial. And even though theres positive interdepartmental rivalry like there is at any firm, there are few complaints. KBW is small and quite unifieda firm with a family feel, notes one banker. Housed on one floor of a large building in New York, its easy to know and interact with just about everyone. There
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is very little formality and there are a lot of close friendships. Just like at home, dress is still apparently casual except for client contact. The guys at Keefe long ago came around to the epiphany that no one really wants to wear suits, says another. People keep the place neat, and no one really thinks about it. The firm has little hierarchy thanks to flat structures and management availability. Compensation is at market, as are hours. One of the hallmarks of this firm is that not only is there no real pressure to put in long hours, theres no real consciousness of the issue, says a source. They give us a clear premise: well talk at the end of the year and see if you made money. But Keefe isnt for everyone, says one insider. To work here, you have to be geared to a small firm and its reach and resources. I guess the brand name isnt as big as Goldmans, so maybe there are times when you have to work harder to make an imprint on new clients. The contact adds, If you want to feel like a master of the universe, this isnt the place for you; they just dont care about the trite side of Wall Street.
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PRESTIGE RANKING
U.S. Bancorp
KEY COMPETITORS
Bank of America Chase Wachovia Corporation Wells Fargo
BUSINESSES
Consumer Banking Payment Services Wealth Management Wholesale Banking
UPPERS
Lots of independence Great relationships with co-workers
THE STATS
Employer Type: Public Company Ticker Symbol: USB (NYSE) President, Chairman & CEO: Richard K. Davis Revenue: $13.9 billion (FYE 12/07) Net Income: $4.3 million No. of Employees: 52,277 No. of Offices: 2,542
DOWNERS
Not a lot of minorities Salary could be better
EMPLOYMENT CONTACT
www.usbank.com/careers
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great footprint throughout the West, strong financial earnings Too big, becoming dysfunctional Sophisticated, profitable, a competitor Average
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THE SCOOP
Big daddy
U.S. Bancorp, with $247 billion in assets as of July 2008, is the parent company of U.S Bank, the sixth-largest commercial bank in the U.S. Based in Minneapolis, the firm offers a full range of banking, brokerage, insurance, investment, mortgage, trust and payment services to individual consumers, businesses and institutions. Business is divided between four core lines at U.S. Bancorp. The wholesale banking division provides commercial banking to middle-market companies, as well as commercial real estate services, correspondent banking, equipment finance, foreign exchange and international banking, government banking, treasury management, dealer commercial services, consumer banking and small business services. U.S. Bancorps payment services division contributes nearly a quarter of its total revenue each year, and offers corporate payment systems, merchant payment systems, retail payment solutions (including debt, credit and gift cards), consumer and integrated credit and debit card processing through Elavon, formerly Nova Information Systems. The wealth management and securities services division includes a private client group, plus corporate trust services and institutional trust and custody. FAF Advisors distributes U.S. Bancorps proprietary mutual funds family, First American Funds. Funds, investments and insurance are handled through U.S. Bancorp Fund Services, LLC; U.S. Bancorp Investments, Inc.; and U.S. Bancorp Insurance Services, LLC, respectively. According to U.S. Bancorp, all of its subsidiaries range in size from $39 million to $139 billion in deposits. Most of its business is centered in the U.S., although it does offer merchant services in Canada and parts of Europe; those operations, however, are not material. Finally, the rapidly expanding consumer banking division provides community banking, metropolitan branch banking, in-store and corporate on-site banking, consumer lending, financial sales, small business banking, home mortgages, community development, workplace and student banking, and transaction services. The company has more than 2,500 banking offices (primarily in 24 states in the Midwest and the West) as well as nearly 5,000 ATMs in the country. U.S. Bancorp is proud of its Five Star Service Guarantee, which it claims as a unique customer service experience to change forever what you expect from a financial institution. This includes the promise of 24/7 service, accurate online account information, and a response via e-mail inquiries within 24 hours.
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Buying spree
In 2007, U.S. Bancorp purchased United Financial Corporation, the Montana-based parent company of Heritage Bank. United Financial, headquartered in Great Falls, had consolidated assets of $411 million and $307 million in deposits at the time of the sale. U.S. Bank executive vice president of community banking, John R. Elmore, noted that Heritage and U.S. Bank had similar community banking models, which would smooth the transition while deepening U.S. Banks business in Montana. U.S. Bancorp also had no plans to re-staff offices after the acquisition, but Elmore said that customers will continue to be served by the same familiar Heritage Bank employees theyve come to know and trust. In January 2008, U.S. Bancorps Elavon subsidiarya leader in the payment processing industryannounced its acquisition of Southern DataComm, a Florida-based payment software provider. The addition of Southern DataComms solutions offering to our global acquiring business results in a true end-to-end solution offering that is unmatched in the industry, Stuart C. Harvey Jr., Elavon president, said in a statement. Harvey added that he hoped the acquisition would fuel Elavons growth in the hospitality and retail industries. Southern DataComm currently serves more than 50,000 businesses. Terms of the deal were not disclosed. In June of 2008, U.S. Bank National Association completed the acquisition of Mellon 1st Business Bank in California, acquiring $2.9 billion in assets, $1.1 billion in loans and $2.7 billion in deposits. Terms of the cash transaction agreement were not disclosed.
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Strong women
In October 2007, for the second year in a row, U.S. Banker named U.S. Bancorp No.1 in the nation as part of its Most Powerful Women in Banking issue. Two of the companys top execsPam Joseph and Diane Thormodsgardwere cited in the top 10 of the 25 Most Powerful Women in Banking. Joseph is U.S. Bancorps vice chairman for payments, and Thormodsgard was promoted to vice chairman and head of wealth management in April 2007. Prior to that, Thormodsgard was president of corporate trust and institutional trust and custody services. Those of us who have the great pleasure of working with these women day in and day out know how fortunate we are to call them colleagues, Davis, U.S. Bancorp president and CEO, noted in a statement.
U.S. Bancorps fourth-quarter 2007 earnings plummeted 21 percent to $942 million, down from $1.19 billion the year before. A chunk of that loss reflected a $215 million charge that was related to litigation concerning Visa. U.S. Bancorp, along with seven other banks, had to pony up the cash as part of an antitrust suit against the credit card company. Despite the earnings loss, U.S. Bancorp was relatively unaffected by the U.S. subprime mortgage crisis and, compared to its competitors, reported what The Motley Fool referred to as rather solid fourth-quarter earnings. According to the web site, less than 3 percent of the banks loans are of the subprime variety. It would seem then that U.S. Bancorp has a leg up on its competitorsfor the short term, anyhow. In early 2008, Fortune even singled out U.S. Bancorp, noting that while other banks were aggressively trying to preserve capital, cutting or reducing previously announced stock buybacks and dividend payouts, U.S. Bancorp was the only one actually increasing its dividend.
No bonus?
Chairman, president and CEO Richard Davis didnt see a bonus at the end of 2007. In 2006, the exec earned $5.9 million, versus $4.4 million in 2007. Davis, who took over as chairman in December 2007, reportedly wasnt alone in the no-bonus arena. According to the AP, other top U.S. Bancorp execs also went without a bonus during the challenging year, and senior-level managers earned their yearly bonuses, albeit at levels lower than usual.
GETTING HIRED
Log on
According to a vice president, U.S. Bancorp keeps a primarily local focus to its recruiting. However, the company web site allows applicants to search for open positions by job category or location (the link is www.usbank.com/careers). There, candidates can also find scheduled recruiting events at regional job fairs, including those aimed specifically at minorities (like
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the National Black MBA conference). While some respondents dont think U.S. Bancorp is overly selective, the company emphasis is on customer serviceand thats a key consideration for recruiters and hiring managers. The bank says its guiding principle is its Five Star Service Guarantee, which ensures specific performance standards that reflect our customers expectations for quality, responsiveness, accuracy and availability. After an initial resume screen, most candidates go through multiple interviews. One corporate finance staffer recalls half a dozen interviews, round-robin style. Two or three is normally the minimum, says another source.
Employee love
U.S. Bancorp recently showcased a film about its employees in 75 different locations around the nation. Featuring real employees, the film allows U.S. Bancorp workers from different divisions the chance to share what they love about the company. The movie will be used to recruit new talent, and showcases new employee programs such as Five Star Volunteer Day, a paid day off to volunteer with a nonprofit of the employees choosing. U.S. Bancorp also announced that it had created an employee assistance fund to aid workers who have experienced natural disasters, illness or other extreme situations.
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Be up for anything
Insiders call U.S. Bancorp is a great company to work for and a decent employer, but also note that the corporate culture varies greatly from department to department. Even so, one characteristic that seems to be constant is that the company has a lot of great employees and great expectations. On the other hand, however, the corporate culture does not stress challenging the status quo. Put another way, one insider extrapolates, the way the business operates is the same today as it was 15 years ago. Management receives high marks from employeeseven if they dont always get their due from the company. My manager is incredible, enthuses one insider, even though the company has yet to promote this manager even though [he is] taking care of multiple branches at the same time and has improved the quality of employees and the quantity of sales. Another contact says, My manager cares strongly not only about the business but the employees who work for him and the customers who help keep him in business. Salaries, however, dont receive quite such glowing reviews from insiders. The pay is far less than what we deserve, says one insider. With my experience and education, I am not being paid what is standardnot even in my state, says one source. I have done the research and I am being paid $7,000 less a year than I should be. Plus, raises are very low and based on overall corporate performancethere arent any performance incentives. All in all, this is a great company to work for, they only need to adjust the pay for their employees, admits one respondent. Benefits, too, could use a little jazzing up. There are no special perks or reimbursements and no stock options. Benefits are not the greatest, says one contact. Although employees are presented with many options for benefits, none are all that great.
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There are a few aspects that insiders seem to enjoy universallythe standard, 9-to-5 work hours, for one. And theres also a lot of room for advancementthe company recognizes achievement. Though, as one insider notes, these opportunities must be self-initiated.
Whats next?
By and large, U.S. Bancorps future prospects look bright. I think the firm will succeed for years to come, says one insider. It has not, like some banks, been very impacted by the mortgage crisis. Additionally, the firm is growingespecially into the international marketsand continues to look for new opportunities in distribution channels, products and services.
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PRESTIGE RANKING
880 Carillon Parkway St. Petersburg, FL 33716 Phone: (727) 567-1000 Fax: (727) 567-5529 www.raymondjames.com
DEPARTMENTS
Asset Management Financial Planning Investment Banking
UPPER
The support and innovation
THE STATS
Employer Type: Public Company Ticker Symbol: RJF (NYSE) Chairman & CEO: Thomas A. James Revenue: $3.1 billion (FYE 9/07) Net Income: $250.4 million No. of Employees: 5,500 No. of Offices: 2,200
DOWNER
Getting too big and too hard to negotiate some of the technology
EMPLOYMENT CONTACT
See professional opportunities section of www.rjf.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong equity research division Weak outside of Florida Good products, good service Never lead bank on deals
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THE SCOOP
Financial Floridians
Founded in 1962, Florida-based Raymond James Financial (RJF) is one of the largest financial services firms in the U.S., with 2,200 offices around the world. Its business falls into four core areas. The private client group offers securities transaction, investment advisory and financial planning services to approximately 1.5 million client accounts. It operates through subsidiaries Raymond James & Associates (RJA) and Raymond James Financial Services (RJFS) in the U.S. In Canada, its Raymond James Ltd., and in the U.K., it is Raymond James Investment Services. The private client group consists of about 4,750 financial advisors. The equity and fixed income capital markets group includes institutional sales, investment banking, syndicate, equity research, equity and fixed income trading, and public finance. It also provides research on more than 600 companies and market-making in 330 common stocks, as well as bond trading. And its research group is well regarded on the Street. In 2008, four Raymond James analysts won top stock picking awards in The Wall Street Journals 16th annual Best on the Street analyst survey, and 10 of the firms equity analysts took home honors in the seventh annual Financial Times/StarMine Analyst Awards. RJFs professional asset management division includes proprietary asset management operations, internally sponsored mutual funds, nonaffiliated private account portfolio management alternatives and several nondiscretionary fee-based programs. As of early 2008, assets under management totaled nearly $37.3 billion. The asset management group also includes personal trust services and two private equity funds. Finally, the Raymond James Bank is a federally chartered savings bank providing loans and deposit accounts to clients of the firms broker-dealer subsidiaries.
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Hometown spirit
At Raymond James Financial, customer service is a No. 1 priority. In practice, this means that financial advisors are given a certain degree of autonomy in their dealings with clients. As CEO Thomas James puts it, good customer service cant come from automatons who only read scripts provided by the home office. RJF's philosophy extends to its community, and many Floridians know it as a major supporter of local arts, sporting events, and charities. (The Tampa Bay Buccaneers play their home games at the Raymond James Stadium, which will host the Super Bowl in 2009.) The firm also sponsors the Raymond James Gasparilla Festival of the Arts, an arts and crafts festival that has been held in downtown Tampa since 1971. The RJF main campus in St. Petersburg is also home to over 1,800 works of art, almost all of which are owned by CEO Tom James and his family. It is considered one of the largest private art collections in the Southeast.
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financial services industry for life. Vogt, who worked for RJFS from a home office in rural Wisconsin, allegedly directed several elderly clients toward high-risk mutual funds and made misleading statements about the levels of risk involved. According to NASD investigators, RJFSs policy of allowing its producing branch managers to operate with minimal supervision hit a snagin addition to a lack of supervisory systems, the NASD alleged that RJFS also failed to properly supervise sales of variable annuities. During the time period covered by the investigation (2000 to 2004), RJFS had over 1,100 producing branch managers working from their homes or in remote locations. They were overseen by an electronic transaction surveillance system run by RFJs compliance department, but the remote managers approved their own transactions, reviewed their own correspondence and managed accounts.
Fleeing India
While many financial services are jockeying for position in the growth markets of India and Asia, RJF is flying the coop. The firm announced in March 2007 that it would sell its stake in its India joint venture, ASK-Raymond James Securities India Pvt. Ltd. ASK-Raymond James is a money management venture between RJF, ASK Investment and Financial Consultants Ltd. and Bharat Shah. The ASK group said it would buy out RJFs 50 percent strategic interest in the venture for an undisclosed amount.
Tech-savvy I-bankers
In the second half of 2007, RJF poached two tech savvy I-bankers from Banc of America Securities. In October 2007, the firm hired Joel Miller as a managing director in its technology and communications investment banking group. Miller, who spent nine years covering the semiconductor sector at BofA, is now covering that same industry for RJF. In addition to BofA, Miller also held prior posts at Salomon Brothers Inc., CreditAnstalt Investment Bank and Ameritechs Venture Capital Group.
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Miller, who is based in RJFs Palo Alto, California, office, joined another recent hire there. John Kelley was hired in August 2007, also as a managing director in the firms technology and communications investment banking group. Prior to joining RJF, Kelley spent eight years with BofA, most recently as the head of application software in investment banking. He also had prior experience with CIBC, BZW/Barclays and Arthur Andersen.
Honors galore
A 2007 national study by American Brokerage Consultants and American Banker ranked the financial institutions division of RJFS No. 2 among 14 major third-party marketers. The RJFS financial institutions division earned an A and No. 1 ranking in the categories of diversity and quality of products, scope and quality of automation, and due diligence expertise. John Houston, RJFS senior vice president and managing director of the financial institutions division, noted that Raymond James spends over $100 million a year on technology, which benefits Raymond James brokers across the firm, not just in the financial institutions division. Its no wonder RJF was selected in June 2007 by Computerworld as one of the top workplaces for information technology professionals. In July 2007, Raymond James financial advisors Judith McGee, Sheryl Stephens and Margaret Starner were named among Barrons Top 100 Women Financial Advisors. This list weighs factors such as client satisfaction as well as total assets under management. RJFS advisors were in the limelight again, in January 2008, when the RJFS led all other broker-dealers on Registered Rep.s Top 50 Independent Advisors list. The national list, which included 15 RJFS advisors, ranks financial advisors by assets under management. RJFS also topped Bank Investment Consultant magazines list of Top 50 Bank Reps. The 2008 list featured 15 RJFS advisors, the most by any firm. RJFS placed five advisors within the top-10 spots.
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Committed to independence
Following Wachovias May 2007 announcement that it would buy A.G. Edwards for $6.8 billion, rumors circulated that further consolidation in the brokerage industry could be on the horizon. Other big banks such as Merrill Lynch, Citigroup, Bank of America and HSBC Holdings expressed interest in buying a brokerage at the time, even though there werent that many left to buy. RJF, along with Piper Jaffray and Jeffries, is one of the few remaining midsized targets. When asked about the possibility of being bought, following the WachoviaA.G. Edwards announcement, RJF CEO Tom James told TheStreet.com, While we may be the subject of speculation, we remain committed to independence.
Record-breaking year
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RJF finished fiscal 2007 on a record-breaking note. Net income for the year ending September 30, 2007, was a record $250.430 million, up from 2006s $214.3 million. And net revenue increased to a record $2.6 billion from $2.4 billion in 2006. Investment banking revenue were up 21 percent to $192 million. Also, for the first time in its history, RJFs Financial Services subsidiary surpassed $1 billion in revenue in fiscal 2007, a total that is more than three times the revenue of 10 years ago. In 2007, RJFS had more than 100 advisors whose annual production was $1 million or greater. Comparatively, the broker-dealer only had 25 advisors with more than $1 million in production just four years ago. For the its latest quarter, the second for its fiscal year 2008, the firm booked a very slight increase in net income, reporting $59.79 million in earnings versus the $59.715 million it booked for the second quarter of fiscal 2007. Total revenue was up 8 percent, and net revenue increased 11 percent. However, for the first six months of its fiscal 2008, net income was down 3 percent to $116 million. Still, the firm was relatively pleased with the performance, given the tough credit markets and slowdown in investment banking deal activity.
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Raymond James Financial
Once you're asked into the office, expect to undergo generally at least three interviews and possibly take a multiple-choice personality and intelligence test. An investment banking analyst, for example, reports going through an on-campus interview that consisted of fit questions, and second rounds that typically last two days and involve many interviews of varying types some fit, some technical. The source adds, You also take a test that has math, logic and psychological questions. A research associate, who went through two rounds of interviewing, says the first round was a three-on-one on-campus interview with numerous macroeconomic questions. The source faced six senior interviewers in the second round and warns prospective researchers to know the current market environment very well. Insiders advise applicants not to stress about the firms assessment test, describing it as standard in the industry. The 100-question exam, which youre not expected to complete, measures the ability to think quickly and accurately. One insider even says they also asked all the financial planners in my geographic region about my integrity.
personality and intelligence test. An investment banking analyst, for example, reports going through an on-campus interview that consisted of fit questions, and second rounds that typically last two days and involve many interviews of varying types some fit, some technical. The source adds, You also take a test that has math, logic and psychological questions. A research associate, who went through two rounds of interviewing, says the first round was a three-on-one on-campus interview with numerous macroeconomic questions. The source faced six senior interviewers in the second round and warns prospective researchers to know the current market environment very well. Insiders advise applicants not to stress about the firms assessment test, describing it as standard in the industry. The 100-question exam, which youre not expected to complete, measures the ability to think quickly and accurately. On another note, one broker, who went through two meetings with a recruiter and had to fill out a long questionnaire and other paperwork tells potential hires, You must have a clean record.
On their honor
More than one correspondent mentioned integrity when it comes to the workplace culture. One insider simply calls it great, adding, Thats why Ive been here for more than 20 years. The company works for me and allows me to make the best recommendations to my clients. And in striving to maintain a personal atmosphere, Raymond James is more laid-back than your average bulge bracket New York firm, says a source in investment banking who's pleased with the exposure to management and deals. The investment banking group is small, and analysts have access to managing directors and senior management within equity capital markets. Because industry teams are smaller, you develop better relationships with superiors and are often given significant responsibility. Another insider who says that Raymond James has a strong history of family values supports the claim by pointing to associate phone directories listed by first name instead of last, and companywide events, including fiscal year-end parties, graduation ceremonies for [the firms] in-house education system and annual company festivals.
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Wide wardrobe
Outerwear required for the job is based largely on where in the country you happen to work. An insider based out of Atlanta says the code is mostly formal always, while a Tampa contact calls the required dress code business casual. Were expected to wear a collared shirt, but jeans arent allowed. And another working out of a Los Angeles branch says casual summer attire is allowed.
Tackling diversity
In terms of diversity with respect to women, theres no glass ceiling, as evidenced by the number of women at the top of our company, one insider says. Underlining its commitment to the development of women, the firm has two in-house groups to promote the cause: the Womens Advisory Council (WAC) and the Womens Initiative Network (WIN). Ethnic diversity receive high marks as well. The firm has a Cultural Awareness Week and color is not an issue in our company, another source reports. But when it comes to the companys treatment and hiring of gays and lesbians, the jury may still be out. However, Raymond James is a sponsor and participant in the 2007 St. Petersburg PRIDE festival and has an active GLBT employee network in The Rainbow Network. One contact reports that our company is definitely family-oriented, but our independence allows all walks of life to coexist.
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47
PRESTIGE RANKING
1001 19th Street North Arlington, VA 22209 Phone: (703) 312-9500 Fax: (703) 312-9501 www.fbrcapitalmarkets.com
DEPARTMENTS
Asset Management FBR Mutual Funds Institutional Brokerage Investment Banking Managed Funds Merchant Banking Private Wealth Research
UPPERS
Very collegial and fun, relative to other investment banksunlike New York banks, people at FBR have lives outside of work Reasonable hours
DOWNERS
Compensation tends to be at a slight discount to the Street It can definitely improve on the diversity issue and attract people from different backgrounds
THE STATS
Employer Type: Public Company Ticker Symbol: FBCM (Nasdaq) Chairman & CEO: Eric F. Billings Revenue: $484.9 million (FYE 12/07) Net Income: $5.24 million No. of Employees: 707 No. of Offices: 10
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EMPLOYMENT CONTACT
See working at FBR at www. fbrcapitalmarkets.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong in niche areas: real estate, financial institutions, aerospace and defense Third-tier bank Intelligent, growing OK
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THE SCOOP
Top bookrunner
Based in Arlington, Va., FBR Capital Markets Corporation offers a full range of investment banking, institutional trading and asset management services. In 2007, it was the No. 1 ranked underwriter of U.S. common stock for midsized companies (those with a market capitalization under $1 billion), according to Dealogic. It also ranked No. 3 for all U.S. initial public offerings and private placements combined. In addition to headquarters in the Washington, D.C., metropolitan area, the firm has U.S. offices in Boston, Dallas, Houston, Irvine, New York and San Francisco. International outposts are maintained in Sydney and London. At its inception, FBR Capital Markets set out to deliver research on a select group of industries. The firm has since expanded its capabilities, and today concentrates on eight industries: consumer, diversified industrials, energy and natural resources, financial institutions, health care, insurance, real estate, and technology, media and telecommunications. FBR Capital Markets complements its advisory, sales and trading offerings with an equity research team that covers more than 570 companies. FBR Capital Markets is a subsidiary of Friedman, Billings, Ramsey Group (FBR Group), a real estate investment trust (REIT) that invests for the benefit of its shareholders in mortgages and mortgage-related securities as well as in a merchant banking portfolio of equities and other long-term assets. The firm was founded in 1989 with an initial investment of $1 million and fewer than 20 employees. But it grew fast, reaching $1 billion in gross revenue only 15 years after opening its doors.
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Getting Legacy
In the first quarter of 2007, FBR expanded its mergers and acquisitions capability by acquiring a 26-person banking team from Legacy Partners Group. The new bankers arrived with substantial experience serving middle market companies in consumer products, energy, healthcare, business services and diversified industrials.
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Vault Guide to the Top 50 Banking Employers 2009 Edition FBR Capital Markets
Chugging along
The firm brought in $484.9 million in revenue in 2007, up from the $418.64 million it brought in within full year 2006. FBR also pulled in $5.24 million in net income in 2007, a considerably better figure than the $9.84 million loss it suffered in 2006. Although the firm suffered fallout from the global credit markets, it still ended the year with its head above waterits investment banking revenue jumped 51 percent from the previous year, and its M&A and equity sales units brought in record performances.
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But by the first quarter of 2008, it was a different story for FBR. The firm endured a net loss of $10.2 million compared with the $11 million net income it earned in the first quarter of 2007. Total revenue, meanwhile, took a 27 percent nosedive to $104 million, due in large part to the 32 percent tumble its investment banking unit endureddown to $78.5 million in revenue for the quarter. Charges and write-downs of about $16 million also contributed to the declines.
Tops in research
Despite the slump, FBR continued to win awards for its performance. In June 2008, five of the firms equity research analysts won honors in The Wall Street Journals Best of the Street Analyst Survey and Financial Times/StarMine Best Brokerage Analyst Survey. Winning the Journal awards were Paul Miller (thrifts), Scott Valentin (consumer and specialty finance) and Dan Ives (software), while Miller, Valentin, James Kumpel (health care technology) and David Amsellum (pharmaceuticals) picked up the FT/StarMine awards.
GETTING HIRED
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Be prepared
Typical candidates will have anywhere from four to 12 interviews, and meet with several members of specific groups at all levels of the organization. It is a tremendous perk that candidates are given the opportunity to meet the entire management. Accordingly, candidates need to be prepared going into the interview to handle all different personality types, and be able to answer behavioral- and industry-related questions, such as Do you understand rigors of investment banking? How would you value a company? Are you aware of the long hours? And why do you want to work for FBR rather than a Goldman or Morgan Stanley?
Inside connections
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Having the right contacts will also make it easier to land an interview at FBR. As one insider dutifully notes, Outside of family and friendship connections, its tough to get hired here. Heavy emphasis is placed on recruiting employees through referrals so knowing someone on the inside will help you get farther. Additionally, insiders who previously interned with the firm prior to full-time employment have a better chance of getting hired. FBR is usually more willing to hire one own of their interns over someone with internship experience outside the firm, because interns are typically assigned the work of a first-year analyst models, briefs, morning notes, assisting with stock pickingand not just on coffee duties. Several insiders note that their performance as an intern was the determining factor in receiving an offer.
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One drawback is the lack of diversity. Although the firm is accessible to qualified candidates of all background, the firm is not very diverse currently. Its still a growing firm and so it can definitely improve on the diversity issue and attract people from different backgrounds. Several insiders wish that the firm would do more to establish specific programs to recruit and retain women, ethnic minorities, and gay and lesbian candidates at all levels of the organization. Another source says the firm needs more mentoring programs, specifically to recruit, train and socialize women.
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48
PRESTIGE RANKING
1221 Avenue of the Americas New York, NY 10020 Phone: (646) 562-1000 Fax: (646) 562-1741 www.cowen.com
BUSINESSES
Institutional Sales & Trading Investment Banking Research
STATS
Employer Type: Subsidiary of The Cowen Group Ticker Symbol: COWN (Nasdaq) President & CEO: David M. Malcolm Net Income: -$11.32 million (FYE 12/07) No. of Employees: 537 No. of Offices: 9 (Worldwide)
KEY COMPETITORS
Deutsche Bank Goldman Sachs Morgan Stanley
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UPPERS
Lots of responsibility early on Constant contact with senior bankers The peopleeven informal get-togethers are fun
DOWNERS
Not very well known Uneven deal flow can really vary your schedule Fewer resources than a bulge bracket firm
EMPLOYMENT CONTACT
www.cowen.com/CareerOpportunities.asp
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Solid investment bank, well known in health care industry Losing market share in tech; overexposed to equity transactions Interesting, little platform Trying to grow but facing big roadblocks internally and externally
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Vault Guide to the Top 50 Banking Employers 2009 Edition Cowen and Company LLC
THE SCOOP
A subsidiary no more
In 1918, Harry Cowen and Arthur Cowen Sr. opened a small bond brokerage business in New York Citys financial district. By the 1920s, the Cowens firm had joined the New York Stock Exchange, and began offering clearing and execution services for correspondent clients. Research and institutional sales were added in the 1960s, around the same time the firm relocated to a new headquarters at 45 Wall Street. A decade of rapid expansion followedduring the 1970s, Cowen opened six offices across the U.S. and began making its first acquisitions. Cowen launched a retail business in 1970 with the purchase of Greene & Ladd, then expanded its retail services in 1977 by acquiring Hardy & Company. The firms expertise in technology and health care dates back to 1976, when Cowen bought Boston-based institutional research firm G.S. Grumman. Cowens reach went beyond U.S. borders in the 1980s with the opening of offices in London, Tokyo, Paris and Geneva. The investment banking unit debuted in 1986, but it really took off a few years laterby the time the 1990s rolled around, Cowens lead-managed transactions accounted for one-third of the firms business. In 1998, Cowen was acquired by Frances Socit Gnrale and continued operating as SG Cowen Securities Corporation. A few years later, SG Cowen sold its retail business in an effort to focus on the core businesses of research and investment banking. By 2006, Cowen was an independent company once again: its parent SocGen agreed to a spin-off, and Cowen issued its IPO in July 2006, trading under the symbol COWN. Kim Fennebresque, who guided Cowens restructuring under SocGen and the subsequent IPO, led the transition. Today, Cowen employs over 530 people in seven U.S. offices and two international affiliate offices in London and Geneva.
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A rough patch
Cowen stumbled in the third quarter of 2007, reporting a net loss of $3.3 million. Total revenue for the first nine months of 2007 was $202.3 million, down 18 percent from $247.6 million in the same period of 2006. These losses, which were steeper than analysts expected, sent Cowen stock down more than a dollar per share. Then-CEO Fennebresque chalked the losses up to volatility in the credit and equity markets, but noted that Cowens sales and trading group benefited from increased trading activity. I remain pleased with the consistent performance of our sales and trading group and its ability to generate revenue in difficult markets while maintaining our risk standards, he said in an earnings release. Fennebresque reserved harsher words for Cowens investment banking group: Not withstanding the challenging capital markets conditions, I remain disappointed with our investment banking performance for the quarter. (Investment banking revenue was $14.4 million in the third quarter of 2007, down 21 percent from the same period a year earlier.) There was one bright light in the otherwise-dim quarter: strategic advisory revenue climbed 23 percent over the same quarter in the previous year. The fourth quarter of 2007 wasnt much better, and Cowens total tally for the year included $261.6 million in revenue, down from $345 million in 2006, and a net loss of $11.3 million, versus a net income of $37.9 million. The firm did get back in the black (barely) in the first quarter of 2008, booking net income of $654,000 on revenue of $55 million. However, those numbers were a drastic down from the first quarter of 2006 when the firm booked $2.5 million in net income and $73.5 million in revenue. The tough market sent investment banking revenue down nearly 50 percent during the quarter.
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GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Cowen and Company LLC
Francisco source says. Candidates who attend other schools can submit a resume electronically, but insiders advise being somewhat aggressive on the follow-up since its easy to get lost in the shuffle if we dont meet you face-to-face. While exceptions do occur, due to our small size the best likelihood is to be at one of those schools, explains another Cowen-ite. Many students are attracted to the idea of working at a smaller, boutique investment bank, so we have a large pool to draw from and can be very selective, which we are.
Pretty typical
Potential hires go through a typical investment banking hiring process with an emphasis on fit. After interviewers ascertain that interviewees understand the basic concepts of finance, fit is the most important aspect of the interview process, a source says. For candidates, the trick is to convince others that they would fit into the firms culture seamlessly. An analyst recalls, I interviewed at school with two bankers, then attended a final day where I had about six interviews. Questions were standard for investment banking. First-round interviews are introductory and behavioral in nature mostly, and are designed to ensure candidates have the confidence and personality, as well as experience and interest, to fill a position at our firm. In the subsequent round, a source says, questions become more market-oriented, technical in nature, and will test the candidates knowledge and skills in finance. As an associate, you will get hired into a specific industry-focused group, one source explains. That means later rounds of interviews are more likely to be with people in the actual group you are interviewing for. Analysts generally meet with HR people, then current analysts and associates before going on to interview with one or two vice presidents, directors or managing directors.
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The high level of visibility and lack of bureaucratic constraints enable junior-level individuals to contribute early and often, a contact says. The flat structure can still be tough and demanding at times. People are laid back and like to have fun, but when it is time to work, there is no room for error. Small deal teams mean you will be involved in many things early on and will be on a first name basis with senior bankers, a source says. Travel to meet CEOs and CFOs is common within the first six months of working as an analyst. An insider in the New York describes Cowen as entrepreneurial, with enough structure to not feel like a boutique bank. Concludes a Californian, I like everybody I know at Cowen and I know every banker in our San Francisco office. I dont think people can say either one of those things at most banks.
Awesome bosses
Managers at Cowen get rave reviews. Senior bankers are candid but respectful of each other and junior bankers, explains an insider. Junior bankers are equally candid and respectful of each other. An open dialogue about anything from sports to the general economy is usually welcome, and doors are almost always welcome. This keeps morale fairly high. Managing directors will joke around with you and ask how you are doing, a New York staffer says. Senior bankers are very friendly and always want you to keep learning. Perhaps most importantly, one analyst says, managers are generally sensitive to your time commitmentswithin reason, because we still are their analysts. That means They will avoid ruining your weekend or leaving you at the office until 3 a.m. if they can. Doesnt always work out that way, but they do seem to try, which is much appreciated. A source, Training the Street is our training company. Its used by Merrill and other banks. Respondents call Cowens training excellent, saying it rivals the bulge bracketminus the internal expertise of economic strategists, prop traders and the like. We learned a ton more in our training than friends did at other banks, opines a contact. I didnt study finance in college, but they got me up the curve very quickly. Although training on the job depends on who you work with, insiders point out that many midlevel and senior people have bulge experience and offer mentorship.
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Theyre trying
Cowen has an initiative to promote diversity, but sources say theres still a way to go. Several respondents say they dont know of any GLBT co-workers; one says, Im not really concerned that it would be a problem, but another thinks the firm doesnt seem to be a healthy environment for gays. The source praises Cowens progress with regard to women, saying, We recently had a full day event for women who work at Cowen, discussing issues that we face in the workplace and how to overcome them. Its fantastic that Cowen embraces diversity and provides a forum to discuss how to make the workplace better. Others feel the atmosphere is appropriately respectful, but say there is definitely room for improvement. A contact points out that As you get higher in the food chain there are fewer women: only one female MD in the whole firm. And although we actively recruit minorities, most say there is very little ethnic diversity within the firm.
Some cheers
The New York office is much older than the San Francisco office, a Manhattan source complains. The furniture is from the 1980s. Many times in summer the air conditioning shuts off at 10 p.m., and it is very hot in the office after that time. One thing the NYC location has going for it is a great location at Rockefeller Center. Counterparts in California rave that the recently remodeled San Francisco office is very high-end and cutting edge, boasting deluxe conference rooms with flat panel televisions and integrated audio and video conferencing. Analysts use the large TVs for watching sports while eating during the evening. Whats more, associates have their own offices in the San Francisco office, and they are comparable to directors and vice presidents. One complaint about the West Coast operation is that the coffee sucks.
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Another advantage for some is that dress in the San Francisco office is always business casual, except for the occasional Friday jeans day. Other locations tend to be more formal, and in New York its business formal most of the year, with business casualno tieon Fridays and business casual in the summer.
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49
PRESTIGE RANKING
ABN AMRO*
In March 2007, ABN AMRO revealed that it was in exclusive merger talks with the U.K.-based Barclays Bank. For many months, ABN AMRO had been considered a likely takeover target for a major European bank; according to an ABN AMRO press release, a merger with Barclays would create a U.K.-incorporated holding company with a primary listing on the London Stock Exchange and a secondary listing on Euronext Amsterdam. The combined entity would have a board organized under U.K. management structures, and though Barclays would supply the CEO, ABN AMRO would appoint the first chairman. As closed-door discussions continued, more information about a potential ABN AMRO/Barclays tie up hit the press. Barclays was said to have $80 billion on the table, but according to The Wall Street Journal, a pending U.S. Justice Department investigation at ABN AMRO was considered a major roadblock to the deal. Although the exact nature of the investigation was not revealed, ABN AMRO had been fined $80 million in 2005 for violating U.S. money-laundering laws and sanctions against Iran and Libya, and it was widely assumed that the criminal probe was linked to these violations. Barclays also said that if it took over ABN AMRO, it planned to eliminate hundreds of investment banking jobs as part of an effort to cut 3 billion in costs at the Dutch bank. While Barclays and ABN AMRO negotiated, a new twist took place in April 2007. ABN AMRO confirmed that it had received a joint letter from a consortium made up of Banco Santander, the Royal Bank of Scotland and Fortisan invitation to start exploratory merger talks. ABN AMRO was tight-lipped about the possibilities, but confirmed that its managing and supervisory boards would "consider the letter carefully, in line with their responsibilities," while continuing talks with Barclays. The three-bank consortium ultimately offered about $90 billion for ABN AMRO$10 billion more than Barclays was offering. Before Barclays stepped forward, the Royal Bank of Scotland (RBS) had been seen as a likely buyer for ABN AMRO. The consortium reportedly asked to examine ABN AMROs books, and said they would split the Dutch bank into separate pieces between them. Under this plan, RBS would get LaSalle, the U.S. retail bank; it would also take ABN's wholesale business in the U.K. ABN AMRO's Brazilian and Italian businesses would be given to Santander, and its retail operations in the Netherlands would be taken by Fortis. In October 2007, Barclays withdrew its bid for ABN AMRO (and received break-up fees of 200 million from ABN AMRO), and the consortium of RBS, Fortis and Santander purchased the Dutch bank.
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50
PRESTIGE RANKING
140 Broadway New York, NY 10005-1101 Phone: (212) 483-1818 Fax: (212) 493-8545 www.bbh.com
BUSINESSES
Corporate Banking Corporate Finance Global Custody Investment Management Treasury & Markets
DOWNER
Slow to change
EMPLOYMENT CONTACT
www.bbh.com/career
THE STATS
Employer Type: Private Company Managing Partner: Douglas Digger Donahue No. of Employees: 3,600 No. of Offices: 15 (Worldwide)
KEY COMPETITORS
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Bank of New York Mellon Fidelity Northern Trust Corporation State Street
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Solid boutique Old guys from Yale Filthy rich Well-known name, low profile
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THE SCOOP
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Private party
During a time when many of its rivals have ventured forth into the public arena, BBH has remained doggedly private and has no plans to change that any time soon. Donahue has said publicly that keeping a narrow focus and remaining away from the
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influence of shareholders has helped them to avoid financial disaster by steering clear of risks like subprime-backed securities. This advantage has given the firm a chance to use the stock market as its own personal bargain bin, investing in companies whose stock price has plummeted due to losses in the bad market. BBH states on its web site that to be bigger is important to some, but for us, nothing is more important than being the best, indicating that theres no plans to change things any time soon.
Banner year
In 2007, BBH advised the New York Board of Trade (NYBOT) on its sale to electronic energy marketplace IntercontinentalExchange (ICE); the deal involved 10.297 million shares of ICE common stock and $400 million in cash. At the close of the transaction, the NYBOT became a wholly owned subsidiary of ICE and for the first time in its history was part of a for-profit, publicly traded corporation. BBH also expanded its insurance sector practice in by creating a new executive position in its investor services division. The role was filled by John Breitweg, former senior vice president at Advest and an 18-year veteran of JPMorgan Chase. Breitweg, based in New York, will work on increasing BBHs business with life companies in the separate account/variable product space. In the later part of 2007, BBH secured an important contract with the Industrial and Commercial Bank of China (ICBC) when it was chosen to be the overseas custodian of Bank of Chinas third collective investment vehicle authorized under Chinas Qualified Domestic Institutional Investor scheme. BBH will provide global custody, accounting and administration services, and compliance monitoring execution services for the vehicle. BBH currently has close to $2 billion under custody.
GETTING HIRED
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No applicant is an island
Expect competency-based interviews where the questions are all pretty similar, but teamwork is a main focus. Also, most of the teamwork questions were specific and I needed to give detailed examples of how I influenced others within my group, how I solved a problem within a group, etc. Candidates interviewing for positions at Brown Brothers Harriman are also advised to study your resume really well. One source says it is important for applicants to know yourself and know what you want in life. Candidates whose resumes spark interest among Brown Brothers recruiters may receive a phone call from human resources to go over the position and the company. One source remembers the phone interview as a good opportunity to have my questions answered, as well as for Brown Brothers to get a feel for my personality and see if I would be a good fit for them.
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Recruiters ask a variety of questions, including ones about basic knowledge of finance and the stock market, as well as ones to determine how much the candidate has researched the firm. After one or two phone interviews, candidates are invited to Brown Brothers offices, where a number of interviews take place. One investment banking recruit recalls one extremely vigorous eight-hour Super Day. I met everyone, including Brown Brothers Harrimans equivalent of the CFO, the senior partner managing the institutional equities business, managing directors, strategists and associates. Another recruit recalls meeting a senior portfolio manager, an assistant and a manager in the group hed be working for. This candidate was asked various questions about managing peoples money and how I saw the market in the near term. Another source says the most difficult interview was with one of Brown Brothers strategists, who initiated a conversation about my thoughts on the market and what was going on out there, probing me for opinions and what I knew. One source recalls a lot of product questions, which I feel took some of the interviews to a level of detail they otherwise would not have gone to. Other interviewers just want to see if I was comfortable talking with people and could think on my feet, according to one source. The process could involve up to 20 interviews depending on your level, reports one insider (yes, you read that correctly20 interviews). One insider vying for the position of vice president calls the process rigorous and says its very careful about who it brings in at senior levels. Another insider reports going through seven or eight interviews over the course of a ninemonth period. On the whole, interviewing days can be long, but theyre fair. No one was out to give me a hard time, says one source. My impression was that people seemed more interested in how I was as a person, what I was like to work with, and how I would fit in with a team that works long hours together. Just dont expect the process to be fully over once the interviews are finished. Anticipate a background check (though theyre mainly just concerned if youre wanted by the law and that you havent declared bankruptcy in the last few years), a drug test and a reference check.
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No major complaints
Compensation gets a thumbs-up from most sources. Although some say the firms compensation structure encourages nepotism and relationships rather than hard work and accomplishments, most say performance is reflected in bonus and salary increment. One source, who says Brown Brothers is a true meritocracy, agrees that your bonus and raise depend solely on your performance. Benefits are nothing to complain about, says another. The firm matches 50 percent of employees 401(k) contributions for up to 6 percent of salaries. After five years with the company, you are fully vested in 401(k) contributions. Vacation time is good, adds one respondent, who currently has about 28 days vacation.
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THE
BANKING EMPLOYERS
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KEY COMPETITORS
Bank of New York Citi Chase
EMPLOYMENT CONTACT
See careers under about us section of www.leumiusa.com
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THE STATS
Employer Type: Subsidiary of Bank Leumi le-Israel CEO: Uzi Rosen Revenue: $381.7 million (FYE 12/07)* Net Income: $30.5 million* No. of Employees: 465 No. of Offices: 14 * Leumi Group
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Israeli bank with limited US influence Up-and-coming Retail banking Never heard of them
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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank Leumi USA
THE SCOOP
Branching out
Bank Leumi USA is a subsidiary of Bank Leumi le-Israel, part of Leumi Group, Israels leading banking group. The group, founded in 1902, today serves clients around the world through more than 300 branches and offices in Israel, major world financial centers in 21 countries, and a broad network of correspondent banks. Leumi Group has total assets of more than $70 billion. Bank Leumi USA, with $5.8 billion in assets as of the beginning of 2008, has a presence in New York, Illinois, California, Florida and the Cayman Islands, but is most strongly rooted in New York. Bank Leumi USA is an FDIC-insured, full-service commercial bank that provides financial services to middle- to upper middle market firms, international businesses, and non-profit organizations. The company specializes in import and export lending, as well as lending to businesses in such industries as apparel, real estate, diamonds and jewelry. Bank Leumi USA offers both U.S. and international private banking services, as well as a range of securities and insurance products through its brokerage subsidiary, Leumi Investment Services, which provides wealthy individuals access to stocks, bonds, mutual funds, annuities, and hedge funds. The company also acts as an intermediary for American firms and individuals with investments in Israel, while subsidiary Bank Leumi Leasing provides equipment financing.
60 Wall Street
The firm began in 1954 as a representative office of Bank Leumi le-Israel, at 60 Wall Street. In 1968, First Israel Bank and Trust Company of New York was formed, and in 1969, the Bank Leumi opened two additional New York offices. In March 1973, the bank changed its name to Bank Leumi Trust Company of New York. One year later, it opened a branch in Queens, New York, and a foreign exchange facility at Kennedy International Airport. It wasnt until 1975 that the banks U.S. subsidiary expanded beyond New York. That year, Bank Leumi le-Israel opened a branch in Chicago, followed by one in Beverly Hills. The Trust Company continued to expand, and in 1976, it acquired five branches from American Bank & Trust Company. The following year, it expanded to Long Island, New York, while Bank Leumi le-Israel opened offices in Philadelphia and Miami. By 1978, Bank Leumi Trust Company of New York had 10 branches, a representative office in Toronto, and two offshore branches in the Bahamas and Cayman Islands. The size of the bank greatly increased in 1980, with the acquisition of 13 branches from Bankers Trust Company. By 1981, the bank had 26 branches and two offshore entities. A new subsidiary, BLT Leasing Corporation, was launched that same year, and an International Banking Facility was established. In the early 1990s, the bank went through a major reorganization, moving toward a concentration in international, commercial middle market and private banking. All retail branches were eventually sold. By 1997, the bank had just two branches remaining in New York, and Bank Leumi Trust Company of New York became Bank Leumi USA. In 2001, the bank established Leumi Investment Services, and opened a branch in Silicon Valley in San Jose, California, to serve high technology customers. In March 2002, Bank Leumi USA purchased the insured deposits of the former Net 1st National Bank. In 2003, Bank Leumi USA opened additional branches in Aventura, Florida, and in downtown Los Angeles; it moved its San Jose branch to Palo Alto. Activity in these regions inspired the bank to launch its Spanish-language web site.
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companys Chicago office, where he served as manager. From 1971 through 1974, Segal was an assistant vice president at Bank Leumi Trust Company of New York, where he was responsible for business development with Jewish and Israeli institutions. He later served as assistant to the president of Bank Leumi Trust Company of New York. The company named as Segals replacement another longtime employee, Uzi Rosen, former CEO of Bank Leumi UK. Rosen, who had been with Leumi Group for 22 years prior to being appointed U.S. CEO, is expected to continue the banks expansion into key markets appropriate for its mix of commercial middle-market lending and U.S. and international private banking. Rosen started his career with the Leumi Group in 1982 as a relationship manager in the corporate division and rose quickly to regional manager in charge of 65 branches. Thereafter, he became head of the commercial customers department of the banking division, where he was responsible for the credit department. By 1995, he was the head of the construction and real estate division, before assuming responsibility for the banks U.K. subsidiary in 2001.
Positive thinking
In his first few years on the job, Uzi Rosen appeared to be steering the ship in the right direction. For the full year 2006, Bank Leumi USAs net income was $25.8 million and total assets reached $5.8 billion. That was up from 2005 net income of $20.9 million and total assets of $6.1 billion for the year ended December 31, 2005. Rosen was optimistic by the third quarter of 2007. For the nine months ended September 30, 2007, net income was $21.6 million, compared with $16 million for the same period in 2006. However, total assets of $5.7 billion at September 30, 2007 were slightly less than total assets at December 31, 2006. By the end of 2007, assets inched back up to $5.8 billion (and were $63 million higher than at the end of 2006), while full year net income came in at $30.5 million, an 18 percent rise versus 2006.
10 percent, anyone?
In December 2007, Bank Leumi USAs parent, Bank Leumi, became the focus of NM Rothschild, a British investment bank hired by Israels Finance Ministry to coordinate the sale of the final 10 percent stake in the bank. Earlier in 2007, a deal to sell the stake to Cerberus-Gabriel, a U.S. hedge fund that bought 9.9 percent of the bank in later 2005, fell through. Reuters reported that the privatization of Leumi, which would be the last of Israels top banks to be sold off, has been a thorn in the governments side for a couple of years. Prime Minister Ehud Olmert had been under police investigation on whether he had tailored the sale of Leumi to favor a friend when he was finance minister. Last month, Israeli police concluded there was insufficient evidence to recommend corruption charges against Olmert. Commenting on the sale of the remaining 10 percent, Leumi Chairman Eitan Raff said he welcomed a solution to gaining a dominant controlling shareholder but noted that it would be difficult to find a buyer for just 10 percent of the bank.
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GETTING HIRED
Send it off
If youre interested in applying for a job at Bank Leumi, check out the careers section of www.leumiusa.com. From there, applicants can look at detailed job openings and send their cover letter, resume and salary requirements to the banks physical address or to jobsusa@leumiusa.com. Alternately, Leumi hopefuls can fax their resumes to (917) 542-2352. Potential candidates looking for a firm that offers options that extend above and beyond traditional compensation packages will probably be pleasantly surprised with Bank Leumi. In the way of company perks, the firm extends amenities such as gym reimbursements, referral services for child care and elder care, work/life lunchtime seminars and in-office preventative health screenings.
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BB&T Corporation
200 W. Second Street Winston-Salem, NC 27101 Phone: (336) 733-2000 Fax: (336) 733-2009 www.BBT.com
RANKING RECAP
Quality of Life #3 Training #7 Hours #13 Overall Satisfaction #14 Best Employers to Work For #15 Treatment by Managers #18 Offices
Diversity #13 Diversity with Respect to Minorities #15 Diversity with Respect to GLBT #16 Overall Diversity #17 Diversity with Respect to Women
KEY COMPETITORS
Bank of America SunTrust Banks, Inc. Wachovia Corporation
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THE STATS
Employer Type: Public Company Ticker Symbol: BBT (NYSE) Chairman & CEO: John A. Allison, IV Revenue: $7.89 billion (FYE 12/07) Net Income: $1.73 billion No. of Employees: 31,000 No. of Offices: 492
UPPERS
Value-driven culture Reasonable hours Best training program in the industry
DOWNERS
Not racially diverse Pay is below industry average Politics and personal agendas can be frustrating
EMPLOYMENT CONTACT
See careers section of www.BBT.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great commercial banking, not a big investment banking presence Strong regional presence Average Good research
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THE SCOOP
BB&Ts main subsidiary is Branch Banking and Trust Company, but the bank owns many other businesses, including Agency Technologies, an insurance software and computer hardware provider; BB&T Insurance Services and Prime Rate Premium Finance Corporation, insurance offerings; Scott & Stringfellow, brokerage and private client services; BB&T Investment Services, a discount brokerage; BB&T Equipment Leasing; BB&T Factors, a firm managing accounts receivable for various clients in the furniture, textile and home furnishing industries; FARR Associates, leadership development consulting; Laureate Capital; Lendmark Financial; Liberty Mortgage; Regional Acceptance Corporation, for auto financing; Sheffield Financial Corporation, for small equipment financing; and Stanley, Hunt, DuPree & Rhine, which offers employee benefits consulting. To help such a sprawling organization run efficiently, BB&T management has streamlined the decision-making process, organizing its banking network into 33 regional groups, each run by a separate president. Each region is able to apply strategies and policies applicable to its particular area without the red tape of securing approval from BB&Ts headquarters.
Shopping spree
BB&T has been burning up the acquisition trail since 1989. In August 2007, the firms principal subsidiary, Branch Banking and Trust Company, said it would buy commercial real estate finance company Collateral Real Estate Capital LLC of Birmingham, Ala. BB&T would combine Collateral with Laureate Capital LLC, its existing commercial mortgage banking firm. The merger made BB&T one of the largest full-service commercial and multifamily mortgage banking companies in the nation, with a commercial real estate servicing portfolio of more than $20 billion. Previously, in May 2007, BB&T paid $370 million for Coastal Financial Corporation of Myrtle Beach, S.C. The acquisition made BB&T the No. 1 firm in deposit market share in the metro-Myrtle Beach market. With $1.7 billion in assets, Coastal Financial operated 24 banking offices through subsidiary federal savings bank Coastal Federal Bank. It operated 17 banking offices in the greater Myrtle Beach area and seven in greater Wilmington, N.C., where BB&T already had the No. 1 market share. In a statement BB&T said the acquisition was particularly attractive because coastal cities in the Carolinas continue to be some of the highest performing markets in its 11-state footprint.
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Vault Guide to the Top 50 Banking Employers 2009 Edition BB&T Corporation
BB&T kicked off 2007 with a successful purchase, when its Branch Banking and Trust Company subsidiary completed its acquisition of insurance premium finance company AFCO Credit Corporation and its Canadian affiliate, CAFO Inc., from Mellon Financial Corporation. The acquisition moved BB&T from the ninth- to second-largest provider of insurance premium financing in the U.S., and the largest in Canada. Insurance premium financing is a type of loan that enables businesses and consumers to pay their insurance costs over time, improving cash flow and providing additional credit and working capital. BB&T already operates insurance premium finance subsidiary Prime Rate Premium Finance Corporation Inc. AFCO and CAFO will operate separately from Prime Rate using their existing brand names as a unit of BB&Ts Specialized Lending Division. AFCO, which was founded in 1954 and acquired by Mellon in 1993, has clients that include large conglomerates, medium-sized corporations, municipalities, professional practices, sole practitioners, groups and associations. AFCOs U.S. offices are in Atlanta, Baltimore, Boston, Chicago, Dallas, Kansas City, Los Angeles, Miami, New York City, Pittsburgh, San Diego, San Francisco and Seattle. CAFO offices are in Edmonton, Montreal and Toronto. In April 2007, BB&T Insurance Services announced its agreement with Union Bank of California, N.A., to purchase its San Diego-based insurance subsidiary, UnionBanc Insurance Services Inc. The acquisition expands BB&T Corporations insurance operation in California, where its wholesale insurance subsidiary CRC Insurance Services and large account commercial insurer McGriff, Seibels & Williams already operates. Founded in 1922, BB&T Insurance Services is the seventh-largest insurance broker in the U.S.
Maintaining independence
From time to time there has been speculation by some analysts that BB&T may one day find itself involved in a different kind of acquisitionone where its the firm being bought. In October 2005, the Winston-Salem Journal reported that an Atlanta-based investment bank, FIG Partners, said in a report that BB&T was likely to be bought. The Winston-Salem Journal said the consensus among executives of Atlanta-area banks was that they believed that BB&T could be sold in the next few years, according to the FIG report. Analysts wrote in the report that the executives based their opinions about BB&T on a perceived increase in employee turnover, the accelerated transition pace of its executive management team and speculation on how long CEO Allison would stay on the job. In response, Bob Denham, a spokesman for BB&T, told the Journal that the FIG Partners report is nothing more than innuendo and rumor. He maintained that BB&T intends to stay independent and that the bank has been an acquisition target on and off for 20 years, said the Journal.
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Bragging rights
Consistently ranked among Fortunes Most Admired Companies, BB&T was No. 265 on the 2007 Fortune 500 list. The firm also consistently ranks among the nations top-three small business-friendly financial-holding companies according to the U.S. Small Business Administration. And in a 2007 nationwide study by J.D. Power and Associates, BB&T ranked highest in customer service satisfaction among primary mortgage servicing companies. Also in 2007, BB&T was among the top-five banks for awards in Excellence in Business Banking from Greenwich Associates. In addition, Forbes.com and StarMine named nine BB&T Capital Markets analysts Top Equity Analysts for 2007. BB&Ts training programs were recognized in 2008 as well, as the firm made Training Magazines Training Top 125 list for quality of employee training programs for the sixth year in a row.
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A deal to remember
Coming off an award-studded 2007, BB&T started 2008 in the same spirit. In January, the firms BB&T Capital Markets division won the Deal of the Year award in the Professional Services category at the sixth annual M&A Advisor Awards in New York City. BB&T Capital Markets won the award for serving as investment banking advisor to Dimensions International in its $230 million sale to Honeywell International. The BB&T team was selected from among 132 finalists representing 52 different firms. BB&T Capital Markets also was a finalist for Deal of the Year in the International/Cross Border Above $100 Million category for its role as advisor to Analex Corporation in its sale to QinetiQ North America Operations, a subsidiary of U.K.-based QinetiQ Group.
GETTING HIRED
Forming relationships
Selectivity at BB&T varies greatly depending on the position being sought. The firms leadership development program, for example, is very selective and the process is difficult. Only the cream of the crop receives offers, as the firm wants hiring intelligent individuals with a lot of potential for success. A contact says, We are looking for long-term relationships not only with our clients, but also with our employees. To find these people, recruiters turn to universities all across the U.S., with emphasis on the Southeast. It is not typical for them to recruit schools in the Northeast, but they will take applications from all over. The firm whittles its list over the course of two or three interviews. A typical experience starts with an on-campus interview with a recruiter, followed by a wine and dine dinner and two interviews, and ending with a final round of in-depth meetings with prospective bosses. Some simply have one on-campus interview followed by a full day on site. Potential questions include the following: Why do you want to work for a financial institution? What are your strengths and weaknesses? Why would you be valuable to our corporation? In addition, there can be role-play skits that make you think on your feet. Insiders say the process is smooth, but warn it can take a while to hear back from them between the first and second interviews.
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Vault Guide to the Top 50 Banking Employers 2009 Edition BB&T Corporation
Some say there is a disconnect between the corporations beliefs and the regions responsible for implementing them. BB&T expects a lot from its employees, but also offers a great deal of job security. This isnt always a good thing, however. A contact says, There are a great number of employees who fly under the radar that should be forced out based on retirement age or fired for incompetence. This might be because the good ole boys seem to run the place, causing age and tenure to be treated as a skill. Some find the firm to be nave, ignoring problems that should be dealt with. And sometimes the politics and personal agendas can be frustrating.
Reasonable hours
Hours are not too taxing at BB&T. Most employees work between 40 and 60 hours per week and rarely on weekends. Some log 10-hour days and are still asked to do more, but the consensus is that work hours are conducive to having a life outside of work. And the firm overall is pretty flexible to allow for personal issues. Some departments are expected to stay late and held to higher expectations, but for the most part, working extra hours is not mandatory. Newer employees may find it necessary to work extra to keep up with the workload. One source, who works between 60 and 70 hours per week and often on weekends, says, I wake up at 5:30 a.m. and read The Wall Street Journal and other materials. Im at work between 8 and 8:30 a.m., and leave around 6 p.m. After a few hours with my family, I work from around 11 p.m. to 1 a.m.
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Learning experience
BB&Ts managers are amazing mentors and coaches. Subordinates are treated very fairly and receive a great deal of assistance with career development. Most managers are very open and inviting, offering support and empathy to those working for them. Some say leadership skills could be improved. According to one source, Everyone is friendly and respectful, but some managers have never been in lower positions, so they dont set realistic expectations. And some feel favorites are apparent. Managers have their own agenda and will play favorites to other managers to pad their pockets. Overall, treatment by managers is pretty respectful. Insiders cant say enough about training for the firms leadership development program. The LDP program is the best training program in the industry. This nationally recognized program teaches not just specific work-related classes but also various skills such as MS Office and public speaking. The banks impressive dedication to employee training and development is evident in its exceptional offerings. BB&T always tries to further educate its employees and provide appropriate resources.
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By way of contrast, down in Atlanta, some first-year employees have their own offices. This is rare, however, as the office in Wilson, N.C., is 90 percent cubicles. The Asheville office is a fairly nice facility. In Orlando, Fla., meanwhile, offices are adequate and comfortable with a responsible sense of fiscal responsibility. Frederick, Md., employees enjoy a fairly spacious, clean and comfortable facility.
Suiting up
BB&Ts dress code is pretty conservative, with most wearing business casual-to-professional attire. On Fridays and Saturdays, people drift more to the business casual end of the spectrum, but no khakis or jeans are worn. A button down shirt or a golf shirt is acceptable on these more casual days. For women, shoes must have a defined heel and panty hose is always encouraged. Managers must always wear a jacket, but a contact says, In Florida, the jacket policy slides a bit.
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RANKING RECAP
Quality of Life #16 Compensation #17 Offices #18 Training #18 Selectivity #24 Best Employers to Work For Diversity #14 Diversity with Respect to Women #20 Diversity with Respect to Minorities #22 Overall Diversity
KEY COMPETITORS
Barclays Capital RBC Capital Markets TD Securities
THE STATS
Employer Type: Subsidiary of BMO Financial Group CEO: Yvan Bourdeau Revenue: $1.78 billion (FYE 8/07) No. of Employees: 2,213 No. of Offices: 26
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UPPERS
Fewer hours than major investment banks Great colleagues Opportunities for junior staff to take high-level roles
DOWNERS
Lack of an established brand name in the US Low volume of deal flow Management split between New York, Chicago and Toronto
EMPLOYMENT CONTACT
See careers section of www.bmocm.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Excellent training program Strong in Canadathats it Decent leverage finance practice, solid in energy Cutthroat culture, overworked
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THE SCOOP
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Expedited service
Today, BMO Capital Markets operate through five core business lines: investment banking, corporate banking, treasury services, market risk management and institutional brokerage (research, sales and trading). In 2005, the firm launched eFXpedite, an online foreign exchange trading system that enables users to access real-time foreign exchange prices and execute trades on the spot. Corporate, institutional and government clients are well served through combined group industry expertise in numerous sectors such as aerospace, auto parts, business services, chemicals and fertilizer, commercial and industrial, consumer and leisure, energy and power, and financial institutions, among others.
Deal maker
Since its inception, BMO Capital Markets has engaged in dozens of big equity deals, from a C$1.72 billion deal with TransCanada Corporation in February 2007 to an $11.12 billion IPO with Bank of China in June 2006. The firm has also underwritten many large debt deals. Recent transactions include lead and bookrunning a C$700 million in subordinate debt for the Bank of Montreal in April 2006, and co-lead and co-bookrunning a C$500 million medium-term debt deal for GE Capital Canada in February 2006. In 2007, BMO Capital Markets had a great year in M&A. The firm jumped an astounding eight spots to No. 24 on Thompson Financials U.S.-announced M&A deal table, working on 40 U.S. deals worth a total of $33.1 billion. And BMO inched up eight spots in Canadian-announced M&A deals to No. 4, advising on 51 deals worth a total of $100.8 billion.
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Vault Guide to the Top 50 Banking Employers 2009 Edition BMO Capital Markets
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A down year
Due to commodity losses and the slowing deal market as a result of the subprime crisis, BMO Capital Markets reported a drop in revenue and earnings in 2007 versus 2006. The firm booked C$1.97 billion in revenue, down from $2.78 billion, and C$425
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million in net income, down from C$860 million. In the U.S., the firm even took a loss of $56 million, versus the $306 million in profit it booked in 2006. More recently, for the second of 2008, the firms net income decreased 7.5 percent to $182 million versus the same period a year earlier, but revenue rose 5.3 percent to $685 million. Increased trading revenue was the reason for the rise. During the quarter, BMO acquired Chicago-based Griffin, Kubik, Stephens & Thompson Inc, making BMO the largest bank-qualified municipal bond dealer in Illinois and sixth-largest in the U.S. Overall during the quarter, BMO underwrote 92 debt and equity deals, including 34 corporate debt deals, 19 government debt deals, five preferred stock deals and 34 common equity deals. In total, BMO helped raise $39.5 billion.
GETTING HIRED
The decision process takes longer for senior hires, but is quite clear-cut for analysts and associates, an insider says. We are not hiring in large numbers for the New York office, so it is competitive. However, another source points out that those who are extended offers also have offers from larger, better firms, and some choose those offers. This leaves BMO looking for people, or with subpar candidates.
A social process
Candidates who come from nontarget schools must go through one or two preliminary interviews before being invited to a full day on site. For campus recruits, the process begins in the fall with an informational presentation session on campus, explains a source. About a month later there are one-on-one interviews on campus. Within two weeks of the interview, selected candidates will be called back to the head office for a series of second-round interviews plus a meal with several employees at the same level as the candidate. There may be an additional socializing event or dinner with fellow candidates the day before the final rounds. On-site interviews may be conducted by a range of senior analysts and associates along with a few vice presidents, and sources say its the second round that has more technical questions. Behavioral questions are still in the mix, though: a contact recalls naming examples of times when I was challenged or took a leadership position. Another insider notes that BMO tries not to leave candidates hanging too longoffers are made promptly after the final round.
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Those who do enter the summer program will find that pay is market, based on an equivalent first-years rate. Summer staffers work alongside coverage, M&A or commercial bankers doing live deals. They also get additional training and go to events.
Friendly, eh?
The BMO culture is very collegial and reflective of our Canadian roots, sources say. Theres a strong emphasis on teamwork, but a contact points out that individuals who excel are able to quickly take on more. Senior bankers are smart and busy, but very approachableeveryone knows each other by name. An open-door policy helps managers delegate more and more responsibility. One managing director appreciates that BMO has the resources of a large firm, but the entrepreneurial spirit of a small firm. And although it covers all industry groups and provides all investment banking products, BMO is less structured than a large bank. This creates a very tight network between junior bankers. We celebrate the wins rather than getting yelled at for the misses, explains an insider. Theres a common spirit of having fun while getting deals done, and young bankers get lots of visibility. The downside, insiders say, is that while you can work closely with upper-level management, you must sacrifice the volume of deal flow that larger banks enjoy.
Diversity could be better at BMO, sources say, though one source notes that the top two bankers in my group are women. One source adds, Hiring, promoting and mentoring women is a priority here. Ive worked on Wall Street for 20 years, offers a female insider, and I find BMO to be a most welcoming firm for women. For GLBT staffers a dont ask, dont tell mentality prevails; an insider believes that the firm is underrepresented relative to the general population. Another believes that while the firm is currently weak with ethnic minorities, the current crop of analysts is starting to have race diversity, so hopefully they will stick around to help build a more diverse senior banker population.
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can help keep individuals from getting overwhelmed, however. The group is small enough that we look out for each other, so workload is pretty evenly distributed, a contact explains.
Lots to learn
BMOs current training program first started in the summer of 2006, and it is trying to mimic the training programs of other banks on the Street. Sources describe initial training as very good, thanks to the firms extensive training environment. The formal training session is just the right lengthsix weeks. A contact notes, It is very relevant to how business gets done at our firm, and helps get new hires up to speed quickly. It is also a great way to meet people. After initial training, learning takes place on the job or through seminars. Says a source, Informal training is good, because you are exposed to a lot of hands-on experience and can work directly with senior bankers. Most BMO managers get high marks from respondents who say they are treated with respect and compassion. The ability to learn and advance is a perk for many, too. My manager is an experienced investment banker with a great knowledge of the business, says one source. Another notes, I love the environment here, because it rewards those who can take on more responsibility than their seniority would otherwise support. Yet another says that if youre a team player with people up and down the organization, youll be treated with respect.
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KEY COMPETITORS
Cowen & Company Stifel Financial Corp. William Blair & Company
EMPLOYMENT CONTACTS
Human Resources Fax: (518) 447-8115 Fax E-mail: careers@broadpointsecurities.com See careers under about us section of www.broadpointsecurities.com
THE STATS
Employer Type: Public Company Ticker Symbol: BPSG (Nasdaq) Chairman & CEO: Lee Fensterstock Revenue: $47.11 million (FYE 12/07) Net Income: 19.46 million No. of Employees: 284 No. of Offices: 8
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Broadpoint Securities Group
THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Broadpoint Securities Group
Struggling upstream
In 2007, Broadpoint Securities Group brought in $47.11 million in revenue, down considerably from the $130.69 the firm pulled in within 2006. Net income, meanwhile, stayed in the red, as the firm booked a net loss of $26.92 million, after losing $43.98 million the year before. Real estate and subprime mortgage losses were largely to blame for the less-than-stellar results. The first quarter of 2008, however, looked a little brighter for the firm, though not much. Broadpoint booked revenue of $19.64 million, up from the $11.63 million it brought in during the first quarter of 2007. But the firm posted a net loss of $9.24 million, about twice as much as it lost in the previous years first quarter.
GETTING HIRED
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Calyon
1301 Avenue of the Americas New York, NY 10019 Phone: (212) 261-7000 Fax: (212) 459-3170 www.calyonamericas.com
KEY COMPETITORS
Citi Credit Suisse Lazard UBS Investment Bank
UPPER
Culture is kind and respectful
DOWNER
Lots of politics
THE STATS
Employer Type: Subsidiary of Crdit Agricole CEO: Jean-Marc Moriani No. of Employees: 13,000 (Worldwide) No. of Offices: 5 (US)
EMPLOYMENT CONTACT
www.calyonamericas.com/content/ career_opportunities.asp
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
A little piece of France
Headquartered in Paris, Calyon is the corporate and investment banking arm of French banking giant Crdit Agricole, a sprawling corporation with a presence in 60 countries. In the U.S., Calyon has two divisions: banking unit Calyon and Calyon Securities, its full service broker-dealer. One of the top foreign banks in the U.S., Calyon Securities operates in six divisions, including corporate banking, derivatives, debt markets, investment banking, equity products and foreign exchange. Its industry expertise includes aerospace and defense, agrifoods, automotive, energy, financial institutions, gaming, health care, homebuilding, lodging, media and communications, real estate, transportation, water and environmental, and forest, paper and packaging. Calyon Securities also maintains a Europe group that focuses on international deal making. Calyon Securities was formed in 2004, when Crdit Agricole Indosuez consolidated its banking operations with the corporate and investment banking division of Crdit Lyonnais, which was promptly absorbed into Crdit Agricole.
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Write-down woes
Calyons parent company, French banking titan Crdit Agricole, suffered some setbacks in 2007 due to its exposure to collateralized debt obligations. The company announced in December an estimate $3.59 billion write-down as a result of the decision by Standard & Poor to downgrade the rating on ACA Financial Guaranty Corp. to junk status. Crdit Agricole was the first of the French banks to come forward with its losses as a result of bad investments, and its disclosure was expected to
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prompt other banks such as Socit Gnrale, Natixis, and KBC to come forward. The bank is expected to rebound quickly as a result of its strong connection to the booming French retail market. Calyon, however, may not rebound so quickly. Crdit Agricoles subsidiarys net income was 97.1 percent lower in the third quarter of 2007 than it was in the previous years third quarter, coming in at $16 million compared to $557.6 million. However, things only got worse from there, as the company admitted that Calyon would finish the fiscal year in the red rather than the black. CM-CIC Securities predicted that Calyon would suffer a $400 million loss for the year as a result of bad investments.
Political pressure
Calyons business in 2007 was affected by political forces that pressured the firm to cut credit to Iran. As a result of Irans nuclear program, Western companies pressured firms to isolate the Middle Eastern country. Both Calyon and French competitor BNP discontinued letters of credit to Iran, which left the country temporarily stranded without payment guarantees for oil purchases. Calyon provides credit guarantees for many oil companies around the world. Iran has had to turn to other countries in order to secure letters of credit because many European banks are joining the U.S.-led efforts to provide some sanctions against Iran.
Newsworthy purchase
Calyon caused a stir in September 2007 when rumors swirled that it would add the French financial daily Les Echoes to its portfolio. The move was described as a temporary measure that would give Louis Vuitton Moet Hennessey time to overcome the antitrust issues which have arisen as a result of its ownership of La Tribune, another French financial newspaper. LVMH plans to sell La Tribune in order to acquire Les Echoes , but the operation will take time. Thats where Calyon stepped in. By taking temporary ownership of the paper, the investment bank shielded others from buying the paper until LVMH is ready to do so. The move was considered controversial among the journalists at Les Echoes who were stunned at the clandestine nature of the deal. A spokesman for Pearson, which currently owns Les Echoes , said, This sort of arrangement was envisaged as a possible temporary arrangement. This does not affect any of the central guarantees of editorial independence and employment.
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GETTING HIRED
Find it all
Check out full descriptions of responsibilities and qualifications necessary for positions when you visit Calyons web site. Candidates interested in working for Calyon can visit the career opportunities section of the site (www.calyonamericas.com), which provides a list of current job openings. Applicants can also fax their resumes to (212) 459-3182 or e-mail them to openings@us.calyon.com. And if you have any additional questions, pass them on to hr@us.calyon.com. Once called in for an interview, candidates can expect a process that one employee says is the easiest I have gone through. Its an honest process, with questions more directed at motivation and career ambitions rather than experience. You will typically have three meetings and, depending on your level, you will meet all the heads of desks before an offer is made. Calyons web site also provides information about the firms special programs, which include the technology co-op program and the summer student program. Calyon in the Americas partners with Stevens Institute of Technology and the New Jersey Institute of Technology to give current students real-world work experience. More specifically, the technology co-op program enables students to combine classroom study with periods of paid professional employment which is directly related to their university major and career goals. The summer student program, with a nod toward nepotism, provides summer employment opportunities for college students who are children of Calyon employees. Prospective employees shouldnt feel too much pressure about picking the perfect job right off the bat. Calyon offers employees an internal transfer option which allows them to move between departments after working at the firm for at least 18 months. And
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for those seeking an American base but some global exposure, Calyon employees can take advantage of international assignments (when available), typically located in Calyons Paris headquarters.
Parlez-vous Franais?
Calyons corporate culture, which is called formal, kind, respectful and multicultural, is often defined by its French connections. Very, very French, says one insider. Not really international even outside of France. And some senior managers can barely speak English! Another contact reports, Regardless of what it pretends to be, Calyon is still a very French environment. Everything is very political. But this contact also notes the upside of the French aesthetic: Being a French bank, the dress code is the most interesting aspect of a typical working day. All are suited with ties but its more for the trendy than actual obligation. The extremely various and often casual dress code, it turns out, is the most frequently praised aspect of Calyons culture (along with the firms strong marks for diversity). However, there are some complaints. [It is] difficult to understand the strategy of the firm due to the ongoing process of change of strategy. Also, there is some inflexibility in relationships between high-level management and the rest of the staff. Another contact says that there are lots of politics, which seems to be their favorite game. And there are plenty of overpaid, badly performing French managers who protect each other. No drive, no innovation, no comparison with the top American investment banks. Another aspect of working at Calyon that sources are unhappy with is their hours, which are very long, with no lunch breaks. And although advancement opportunities do exist, so do stagnant positionsthat is, try your best to stand out in this evolving firm, or else you very well may be lost in the shuffle.
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Pretty standard
For the most part, respondents are happy with their compensation. Calyon bankers receive a relatively standard compensation and benefits package, including a pension plan, health and dental insurance, as well as tuition reimbursement and an employee loan program for qualifying personnel). However, bonuses are below market, except for the top happy few. Another insider agrees, noting that while basic salaries hit the markets average, bonuses are below the mark. But insiders do enjoy the companys perk package. In the past, employees have also had the opportunity to purchase company stock at a discounted price. In New York, staffers can join the Lyons Club, an employee club that entitles members to receive corporate discounts (e.g., gyms and cultural events) and participate in various activities such as ski trips and volunteering for nonprofit organizations. And due to the firms strong international network, diversity is good.
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KEY COMPETITORS
Friedman, Billings & Ramsey Jones Financial PacCrest Pacific Growth Piper Jaffray Companies Wedbush Morgan
EMPLOYMENT CONTACT
www.cariscompany.com/caris_careers.php
THE STATS
Employer Type: Private Company Chairman & CEO: Darren J. Caris No. of Employees: 65 No. of Offices: 4
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THE BUZZ
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Vault Guide to the Top 50 Banking Employers 2009 Edition Caris & Company
THE SCOOP
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Dealbook 2007
Not all of Caris notable work comes from the desk of its analysts. In 2007, the firm managed to work on some big investment banking transactions, including the sale of $12.5 million worth of Underground Solution (a water infrastructure company) common stock to the Switzerland-based firm Pictet Asset Management. Earlier in the year, Caris co-managed (with Merrill Lynch, Piper Jaffray & Co. and First Albany Capital) the sale of 4,485,000 common shares of Omnicell, Inc. The sale gave the Nasdaq-traded company an infusion of funds worth $94.5 million in gross proceeds. In 2007, Caris also co-managed the initial public offering of Response Genetics, a Los Angeles-based research and development company focusing on creating diagnostic tests for cancer patients. The IPO hit the market in June at a price of $7 per share and included three million shares of common stock. Another deal the company oversaw was a key financing arrangement for the Canadian biotech company Resverlogix Corporation. Caris raised $17 million of senior secured convertible promissory notes for the firm.
Team building
Since its inception in 2002, Caris has stayed true to its original goal to become a new kind of Wall Street firm. Recently, it made no less numerous new appointments of important personnel, including four new senior vice presidents, two managing directors, and one new president and COO. The president and COO title was appointed to Michael E. Hoffman in June 2007. Hoffman came to Caris from Friedman Billings Ramsey, where he served as the deputy director of research, head of fixed income research and group head of diversified industrial research.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Caris & Company
GETTING HIRED
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KEY COMPETITORS
JMP Securities Montgomery & Co. Pagemill Partners Savvian
UPPER
Very sociable, collegial, supportive and respectful culture
DOWNER
Most training is on the job
THE STATS
Employer Type: Private Company Chairman & CEO: Michael Butler No. of Employees: 23 No. of Offices: 1
EMPLOYMENT CONTACT
E-mail: jobs@cascadiacapital.com See careers at www.cascadiacapital.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Solid investment bank In turmoil and transition Smart people Not well known
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Vault Guide to the Top 50 Banking Employers 2009 Edition Cascadia Capital LLC
THE SCOOP
Northwestern roots
A small boutique headquartered in Seattle, Cascadia Capital focuses primarily on the demand side of capital markets. This includes dedicated coverage of private equity firms, hedge funds and venture capital firms. Its three business divisions corporate finance, mergers and acquisitions, and strategic advisory servicesare tailored to middle-market and emerging growth companies in North America, public and private alike. The firms industry expertise includes information technology, communications, security and defense, health care, industrial, new media and Internet, and consumer and retail.
Top-shelf service
Cascadia was founded in 1999 by current CEO Michael Butler and executive vice president Kevin Cable. Butler was a veteran Wall Street banker, having done time at both Morgan Stanley and Lehman Brothers. In 1999, he left New York and returned to his hometown, Seattle, determined to launch his own firm. At the time, mergers and acquisitions were keeping West Coast boutiques busy, but a few months after Butler and Cable hung out their shingle, the market took a nosedive. The following years were lean, but by 2002, Cascadia was back on its feet (and unlike many other regional boutiques, it hadnt been acquired by a rival). Butlers experience leading Cascadia through those difficult years has informed the way the bank does business nowhe has often said that he draws on his own experience as an entrepreneur when he counsels other growth companies. Another tenet of Cascadias philosophy is senior involvement for clients of all sizes. Butler knew from his time in the bulge bracket that at big banks middle-market firms and small business clients often pay top prices for low-level advisors. When Butler and Cable launched Cascadia, they announced that part of their mission was to offer bulge-quality advisory services to smaller companies, without the fee inflation.
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Top transactions
Cascadia worked on some transactions worth celebrating in the first half of 2007. In April, the firm helped Dutch software giant Unit 4 Agresso sell its sluggish distribution arm to Westcon for 53.2 million. One month later, Cascadia was called in to advise as fellow Pacific Northwest company Zetron was acquired by Japans Kenwood for an undisclosed sum. Then in June 2007, Cascadia assisted St. Louis-based Control Devices Inc. with a majority equity recapitalization, connecting the company with Corridor Capital, a Los Angeles private equity firm. In the second half of the year, Cascadia advised RecipeZaarthe do-it-yourself cooking web site beloved by suburban moms all over the U.S.on its sale to Scripps for $25 million. Cascadia also worked on the sale of Open Interface to QUALCOMM, Newgen to Aspen Marketing Services, and Lightedge by Anschutz Investment Company, all for undisclosed sums.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Cascadia Capital LLC
Expert opinion
Recently, Butlers name has been appearing more and more in print, and not as a result of scandal or disaster in the markets. In 2007, Butler could be frequently found as a guest columnist or expert about various topics in newspapers and magazines across the country. His opinions could be found on the pages of Greentechnews, Seattlepi, Fortune Small Business, Rocky Mountain News, CNetNews and ClimateBiz. He is most often consulted for his expertise on the rise of alternative energies.
GETTING HIRED
Social creatures
For the most part, the Cascadia team is very sociable, collegial, supportive and respectful. And the atmosphere is an intellectually challenging one. Its entrepreneurial and somewhat loose culturetypical of a small firmallows newbies to take responsibility early on in their careers. Sources say they rarely get tangled in the kinds of red tape that can bog down a bigger companythere are relatively few bureaucratic processes and procedures with which to contend. And though the firm is focused and results-oriented, its a team-based workplace and insiders describe themselves as a close-knit group. In keeping with the firms collegial environment, managers at Cascadia routinely get high marks for their management expertise and treatment of junior staff.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Cascadia Capital LLC
When it comes to preparing new hires, for the most part, training is on the job, and the firms official training processes could use some tightening up. Diversity is another area that respondents feel deserves improvement. Cascadia needs to hire more women and ethnic minorities, admits one executive, but opportunities have been limited.
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Comerica
Comerica Bank Tower 1717 Main Street Dallas, TX 75201 www.comerica.com
KEY COMPETITORS
Bank of America Citi LaSalle Bank
UPPER
Great people to work with
DOWNER
Pretty tight when it comes to expenses
EMPLOYMENT CONTACT
See career center section of www.comerica.com
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THE STATS
Employer Type: Public Company Ticker Symbol: CMA (NYSE) Chairman & CEO: Ralph W. Babb Jr. Revenue: $2 billion (FYE 12/07) Net Income: $686 million No. of Employees: 10,800 No. of Offices: 500
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great consumer bank Midwest firm Good reputation Aggressive business lending
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THE SCOOP
Texas transplant
Comerica is among the 20-largest stateside banking companies, with locations in seven of the 100-largest cities in the U.S. The bank, whose name is emblazoned on Comerica Park, home of Major League Baseballs Detroit Tigers, had $67 billion in assets as of March 2008. In 2007, Comerica was ranked No. 487 on Fortunes largest U.S. companies, No. 9 among the largest SBA 7(a) lenders in the nation, No. 13 among the top banking companies in commercial (C&I) loans and in the top-20 banking companies for small business loans. In March 2007, the company broke its long history in Michigan to move its headquarters to Dallas, Tex. In addition to the Lone Star State, Comerica also has a large presence in Michigan and California as well as a smaller but significant footprint in Florida, Canada and Mexico.
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Dallas debut
Comerica made a big move in March 2007 when it announced plans to move its national headquarters to Dallas over the next three years. Only about 250 positions moved to the new Dallas office, but the move shifted almost all the companys highest level employees to the new post, thus anointing it the official home base. Approximately 6,000 employees positions remain in Detroit, a city which continues to founder due to the downslide of the American auto manufacturing business. Michigans mini-
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recession makes the states inhabitants unreliable candidates for repaying loans, forcing banks to boost their reserves for loan losses. Comericas future certainly looks brighter from Dallas than it did from the Motor City. The company has about $3.9 billion in deposits in Texas alone and commercial lending continues to thrive in the Dallas area. By the end of 2007, Comerica had thrown itself head first into the Dallas arena, hosting a New Years parade in honor of the citys downtown area. The parades grand marshall was former Dallas Cowboy football legend (and more recently, Dancing with the Stars champion) Emmitt Smith.
Michigan blues
Though the headquarters has changed cities, the majority of Comericas employees are still located in Michigan and the company is keeping a close watch on the state to see if the economic outlook might turn up anytime soon. Early predictions for 2008 seemed to suggest that the situation could get even more dire. Dana John, chief economist at Comerica Bank, had the following to say after a late 2007 report showing the Michigan economys downward slide: The clear risk is that our index will start trending lower in early 2008, reflecting a further weakening of the Michigan economy in reaction to the sharp slowdown this winter in the national economy. But Comerica hasnt completely abandoned the state where it was first incorporated. The bank gave $8.6 million in charitable gifts to the state in 2007, choosing charities that would stimulate economic, social and cultural growth.
Gaining momentum
The move to Dallas gave Comerica a trophy to add to its shelf in 2007 when it was awarded the 2007 Momentum Award from the Greater Dallas Chamber of Commerce, which is given to companies who help to boost the local economy. This honor comes with a host of other distinctions bestowed upon Comerica in 2007, including four awards for excellence in small business service from Greenwich Associates in their Business Banking Research. Diversity continues to be a strength of the company as well. This year it was ranked sixth on Hispanic Business magazines Diversity Elite 60 List, which rates national companies for how well they promote diversity in the work place. In Michigan, it received the 2007 Corporation of the Year award, given by the Michigan Center for Empowerment and Economic Development for its support and dedication to women in the workplace. The company was also ranked among DiversityIncs Top 50 Companies for Diversity in 2007.
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GETTING HIRED
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Good opportunities
As for training, Comericas programs and educational opportunities are better than at most other firms in this market. And although sometimes it feels like too much, its generally a great benefit to the personal and professional development of those who take advantage of the events. One contact notes that theres a three-week training course in Detroit, and in the corporate finance group, Comerica has begun an internal training program to help further careers. On the other hand, an insider finds that one general training course for one or two days per year hardly makes for a well-trained staff.
Committed to maintaining?
Comerica is very committed to diversity, asserts one insider. But other sources are mixed as to whether Comerica effectively recruits and retains a diverse workforce. According to insiders, the firm possesses a largely female workforce, with largely male
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senior management. Theres been some improvement by hiring more senior female managers from outside the company, but theres an overall lack of mentoring of current female employees to bring them up the ranks. However, another contact observes, The two top department heads for the company are women, and there are several women in management roles. In terms of ethnic diversity, one insider from the corporate finance division describes the group as very diverse with several different ethnic backgrounds represented. Another source reports that Comerica takes very seriously the need to be diversified at all levels of the company. However, a colleague disagrees, saying, In California, our employee pool does not match the diversity of the state, particularly with regard to Hispanics.
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RANKING RECAP
Quality of Life #12 Offices #17 Selectivity
KEY COMPETITORS
Deloitte & Touche Corporate Finance Houlihan Lokey KPMG Corporate Finance
DOWNERS
Compensation significantly below middle market peers Training is mediocre at best
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EMPLOYMENT CONTACT
www.duffandphelps.jobs
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Duff & Phelps Corporation
THE SCOOP
Beyond research
Duff & Phelps began in 1932 as an investment research services company with a niche focus on the utilities industry. Over the years, the firm diversified into other financial services, including investment management, investment banking and credit rating. It also added expertise in other industries. Today, Duff & Phelps offers financial reporting valuation, real estate and fixed asset services, tax services, corporate finance consulting, restructuring advisory, and dispute and legal management consulting. Investment banking services are provided by Duff & Phelps Securities LLC, the firms registered broker-dealer. After divesting its credit ratings business in 1994 (the unit was spun off and purchased by Fitch Ratings), Duff & Phelps pursued a handful of acquisitions and alliances. In 2005, it acquired Corporate Value Consulting (CVC) from Standard & Poors; a year later, it bought Chanin Capital Partners LLC, a boutique investment bank that specializes in restructuring advisory for middlemarket and distressed transactions. In September 2007, Duff & Phelps entered a strategic alliance with Shinsei Bank. Under the terms of the alliance, Shinsei took a 10 percent stake in Duff & Phelps; in exchange, it offers its Asian clients a range of valuation services through Duff &P Phelps. Headquartered in New York City, Duff & Phelps has 15 offices across North America, five European locations and one Asian outpost in Tokyo. Worldwide headcount is about 1,100.
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Making a grab
Just a few weeks after making its debut on the NYSE, Duff & Phelps announced another acquisition: Rash & Associates L.P., a national provider of property tax management services. The purchase made Duff & Phelps one of the countrys leading fullservice property tax providers. CEO Gottdiener said the buy was consistent with our strategy of expanding and strengthening our state and local tax services, an area of high growth potential that we have targeted. Rash & Associates is headquartered in Plano, Texas with additional offices in Houston and Atlanta. Founded in 1972, the company employs approximately 70 professionals. After the acquisition Rash continued operating as Rash & Associates, a Duff & Phelps company, offering services that complement Duff & Phelps existing property tax consulting services.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Duff & Phelps Corporation
In May 2007, Duff & Phelps investment bankers offered a fairness opinion in Boulder Specialty Brands $465 million acquisition of GFA Holdings/Smart Balance. That same month, the firm advised the Hydril Company, a manufacturer of premium connections and pressure control products, on its $2.1 billion acquisition by Tenaris, a leading manufacturer and supplier of tubular products for the global oil and gas industry. The bank also served as financial advisor to Berkline BenchCrafts $225 million out-of-court restructuring in September 2007. Other notable assignments for the Duff & Phelps investment banking teams in the second half of 2007 included advising Color Spot Nurseries, the worlds largest horticulture provider, on its sale to a fund managed by GSC Group; and advising American Standard Companies (the bathroom and kitchen fixture manufacturer) on solvency issues and capital opinions connected to the spin-off of Wabco, its $2 billion vehicle control systems business.
Numbers going up
Duff & Phelps issued its first earnings statement as a publicly traded company in November 2007. The firm reported third quarter revenue of $83.9 million, up 23.6 percent from the same quarter in 2006. Net income for the third quarter of 2007 was $10.7 million, compared with $7.4 million in the previous year. Duff & Phelps worldwide workforce grew, too as of September 30, 2007, Duff & Phelps employed 763 client service professionals (compared to 636 on the same date in 2006).
As head of the financial advisory segment, Peters oversees the valuation advisory, specialty tax, corporate finance consulting, and dispute and legal management consulting businesses. Burts investment banking segment includes mergers and acquisitions advisory, transaction opinions and restructuring. Besides leading the investment banking segment, Burt remains head of the firms mergers and acquisitions advisory division. At the same time, Duff & Phelps created an enterprise risk management unit, tapping Dan MacMullan to be its head.
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Duff & Phelps Corporation
be in pretty good shape. But above all, the firm is very into fit. A contact says, If you have made it to an interview, we assume you can do the work. It then becomes about fit. The valuation group recruits at colleges, although not the top-tier schools. The firm looks to Northwestern, University of Chicago, USC, University of Illinois, NYU, and undergraduate Ivy Leagues. The Chicago office recruits primarily in the Midwest, at Big 10 schools.
Watered-down experience
Participation in Duff & Phelps internship program is not necessary, but always helps. Insiders say those who score banking internships usually know someone to get the job. The firms unstructured program is only offered occasionally and doesnt necessarily paint an adequate picture of a full time gig. Interns work 10 to 6not real banking hours. Still, some say an internship could be important. A contact says, We hired one candidate from last years internship class and offered a position to another. With a class of one to four new analysts per year, the interns could represent all of our hiring needs. The program could set you ahead of the rest of the pack. But in reality, Duff & Phelps hires far more full-time employees than interns, so it is not crucial to first be an intern.
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As for other groups, the culture in the valuation group seems less intense, and one insider says, Duff & Phelps is a great place to work if youre not in investment banking.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Duff & Phelps Corporation
my age in terms of managing a process, client and network because I have had that level of experience that is virtually impossible at a bulge level where junior staff spend most of their time modeling. Some say Duff & Phelps is becoming more conscious of its lacking training program, and is beginning to offer Training the Street and other outside training services.
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KEY COMPETITORS
LaSalle Bank National City U.S. Bancorp
UPPERS
Good if you are of an entrepreneurial mindset Superior benefits
EMPLOYMENT CONTACT
See careers section of www.53.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great regional bank with a fantastic corporate culture Unsophisticated Small but up-and-coming Has-beens
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Vault Guide to the Top 50 Banking Employers 2009 Edition Fifth Third Bancorp
THE SCOOP
Midwest contender
In 2008, Cincinnati-based Fifth Third Bank ranked in the top 10 in the Super-regional Bank category in Fortunes annual ranking of the Most Admired Companies in America. (In previous years, the bank had snagged the No. 1 spot.) And on the 2008 Fortune 500 list, the bank was ranked No. 307; on the latest Forbes 2000, it was No. 446. The strangely named Fifth Third Bancorp began its existence in 1858 simply as the Bank of the Ohio Valley. In 1871, the Bank of the Ohio Valley was acquired by the Third National Bank, and in 1908, the combined company decided to merge with The Fifth National Bank, creating the Fifth Third National Bank of Cincinnati. The name was subsequently changed to its current form, and today, Fifth Third Bancorp provides retail banking, commercial banking, investment advice and bank processing services through 1,308 full-service banking centers in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, North Carolina, Georgia and Missouri. In addition to offering consumer and corporate banking and capital markets services, the bank is one of the Midwests largest money managers, and provides trust and investment management services. As of March 2008, Fifth Third Asset Management had $212 billion in assets under care, of which it managed $31 billion for individuals, corporations and nonprofit organizations. The banks other major business unit, Fifth Third Bank Processing Solutions, is one of the largest third-party providers of electronic funds transfers in the nation.
Revamped C-suite
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In April 2007, Fifth Third appointed a new CEO to help put the bank back on the fast track. Kevin Kabat, the banks executive vice president for retail and affiliate divisions, succeeded CEO George Schaefer Jr., who had served the firm for 36 years (16 of those as president and CEO). Its unclear what changes the switchover will bring aboutSchaefer had a reputation of spearheading far-reaching acquisitions, while Kabat has said getting better at what we do is a goal.
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GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Fifth Third Bancorp
interviews, the vice president in the affiliate warned me about the sink-or-swim mentality of the bank, and advised me to be careful before accepting an offer.
Lots of benefits
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The firm offers superior benefits, such as dependent day care, 401(k) matching, electronic filing of out-of-pocket expenses, stock options and profit sharing. Compensation receives average ratings from employeespay is good, not great or poorthough hours get high marks, as sources report working anywhere from 40 to 50 hours a week to 50 to 60, but not much more. The hours are great, reports one happy insider. But its also good to not be the last to arrive and first to leave. You can generally set your own schedule and as long as youre making your goals. Plus, most sources report rarely having to work on the weekends, and vacation time tends to be generous, with the option to buy even more time annually.
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KEY COMPETITORS
Regions Financial SunTrust Banks, Inc.
UPPER
The positive team work attitude
DOWNER
Too conservative and resistant to change
THE STATS
Employer Type: Public Company Ticker Symbol: FHN (NYSE) President & CEO: Bryan Jordan* Revenue: $2.31 billion (FYE 12/07) Net Income: -$170.1 million No. of Employees: 6,500** No. of Offices: 441**
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EMPLOYMENT CONTACT
See careers section of www.firsthorizon.com
*Effective September 1, 2008. **Projected as of September 2008, when sale of 230 retail and wholesale mortgage offices to MetLife is completed.
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Solid regional player Turmoil A late-comer in the regional banking world Never heard of them
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Vault Guide to the Top 50 Banking Employers 2009 Edition First Horizon National Corporation
THE SCOOP
Mixing things up
Its fitting that First Horizons trademarked motto is All things financial. The First Horizon family includes FTN Financial, its capital markets division and one of the nations top underwriters of U.S. government agency securities; and First Tennessee Bank, which offer retail and commercial banking services. Historically, First Horizons regional banking segment has produced the bulk of its revenue followed by mortgage banking, capital markets and the corporate unit. First Horizon has been on AARPs list of Best Employers for Workers Over 50 every year since 2003, and Working Mothers 100 Best Companies for Working Mothers list since 1995. First Horizon entered a new era in July 2008, as the firms president and CEO Jerry Baker announced plans to retire, making way for a new leaderthe firms own Bryan Jordan. During the transition, Baker will take on the role of vice chairman until he retires on December 31, 2008. No doubt the firm expects Jordanwho currently serves as First Horizons chief financial officer and executive vice presidentto help turn around First Horizon financially. The firm posted a net loss of $19.1 million in 2008s second quarter and its charged-off loans increased to $127.7 million from the first quarters $99.1 million. Baker, a veteran of BankAmerica Corp., Countrywide and Fleet Mortgage Group, joined First Horizon in 1998 as president of the mortgage banking group. He was named president and CEO of First Horizon Home Loan in 2001 and, in 2003, was tapped to become First Horizons president. He took over as CEO and chairman in 2007, when J. Kenneth Glass retired. Around the same time, Bryan Jordan replaced Marty Mosby as the firms CFO.
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Vault Guide to the Top 50 Banking Employers 2009 Edition First Horizon National Corporation
First Horizon announced another downsizing measure in September 2007, when it said it would sell off all 34 of its branch locations to a handful of regional banks. First Horizon divested its First Horizon bank branches in second quarter 2008, after which the bank intends to focus on its most profitable businesses.
Selling it
When First Horizon reported its 2007 year-end earnings, it became evident why such strict downsizing measures have been underway. For the 12 months ended December 31, 2007, First Horizon reported a net loss of $170.1 million, a significant drop from earnings of $462.9 million in 2006. Return on average shareholders equity and return on average assets for 2007 were -7.02 percent and -0.45 percent, respectively. For the same period in 2006, the numbers were 19.1 percent and 1.19 percent. Additional job cutsor an outright sale of the companys mortgage businesswas not out of the question. We will continue to make further significant adjustments to our mortgage and related lending businesses, including pursuing strategic alternatives to further reduce our exposure to these areas, concluded CEO Jerry Baker in an earnings release. Baker also told analysts that the firm was looking at all kinds of alternatives, which could include a partner in one form or another, including the sale of mortgage servicing assets. In the end, the firm decided to sell its national mortgage franchise. In July 2008, First Horizons First Tennessee Bank National Association sold more than 230 retail and wholesale offices nationwide and its loan origination and servicing platform to MetLife Bank. The transaction, which is expected to close in the third quarter 2008, will involve pre-tax charges for First Horizon of about $50 million to $70 million for the rest of 2008. As part of the deal, First Horizon will keep its 21 Tennessee-area mortgage offices, and continue to offer home loans and mortgage services.
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Vault Guide to the Top 50 Banking Employers 2009 Edition First Horizon National Corporation
balance sheet, and redeploy capital more toward sectors that can offer greater returns, Baker told the paper. The bigger opportunitys here, in-state. Barrons reported that The First Tennessee banking unit already has a 23 percent share of the states household market, and Baker wants to raise that to 30 percent in the coming year or so; hes particularly keen on pushing further into Tennessees midsection as a bigger retail and commercial lender. The question, though, is whether First Horizon can recover from the massive losses it suffered over the past year in its national mortgage portfolios. On that topic, Bryan Jordan, the firms new CFO, told Barrons, Were trying to evaluate the adequacy of loss severity built into our models given the deteriorating credit quality, allowing for the fact that the next six to nine months are not likely to look like the last 10 or 15 years in terms of real estate credit.
GETTING HIRED
Step inside
In addition to its online application process (www.fhncareers.com), First Horizon tends to get employees from the competition and by word of mouth. Candidates interested in the company need to do some diggingas one source points out, They do not advertise this gold mine. The firm recruits across the country and hires mostly experienced people. Specifically, its after professional, genuine, respectable individuals." Insiders report that First Horizon is relatively choosy when it comes to bringing in new employees. As one source puts it, Because we have a reputation as one of the nations best employers, we can be selective in our hiring.
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One insider calls the interview process comprehensive. The first step is an initial phone screening, followed by an online application and resume review. Next, candidates sometimes have two face-to-face interviews," the second of which is normally with a department head. One respondent reports having three interviews: with a district manager, operations manager and regional president. Another contact says he had a single round of interviews where I met with the team lead for the area I would be working, his manager, and the department headeach one individually. An internal candidate says he went through a couple of informal interviews, due to the fact I already knew and had worked with the hiring manager. Another recalls meeting with a president and vice president. Interview questions vary, but are designed to gauge a candidates personality as much as financial knowledge. Some examples include: Who is your biggest fan and why? and How does that person describe you? Recruiters at First Horizon tend to move quickly. One source says the timeline for hiring is approximately two to three weeks. One way for candidates to get their feet in the door is through an internship. Some are paid, while others are for college credit. In general, internships give students a better idea of what its like to work for First Horizon. One former intern reports, The internship helped me understand how I could fit in here.
A solid reputation
Theres teamwork and communications at play at First Horizon. Almost across the board, insiders say the firm lives up to its reputation and backs up its advertised employees first culture. And the first thing to know about FHNC is that ethics is serious business. There has always been a deeply held code of doing things the right way. One insider raves that his co-workers are good people to work with, and calls the firm a solid company. Its professional and genuine. Another agrees that there is a very supportive team culture. The personnel here are all about your personal success and development. Others call it conservative but add that it has its own regional flair.
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FOCUS
1150 Connecticut Avenue, NW Suite 515 Washington, DC 20036 Phone: (202) 785-9404 Fax: (202) 785-9413 www.focusbankers.com
KEY COMPETITORS
Harris Bankcorp Jefferies & Company Raymond James Financial
EMPLOYMENT CONTACT
info@focusbankers.com
THE STATS
Employer Type: Private Company Founder & Chairman: Marshall Graham CEO: Doug Rogers No. of Employees: 46 No. of Offices: 5
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
Experience is key
As for the seasoned portion of the FOCUSs catchphrase, there is evidence that demonstrates that the company can back that up with fact. FOCUS wants to position itself as the number company for middle-market deals and have recruited veterans of the business to back up its claims. The firm boasts that all of its partners have significant C-level experience, and that even its staff is full of former CEOs, COOs and CFOs. The partners at FOCUS are known to be more hands-on, meaning that they will assist with M&A deals.
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Westward ho
FOCUS is beefing up its presence in the U.S., and has lately made some moves to expand on the west coast, including the opening of a Los Angeles office in October 2007. The managing director for the L.A. office is Paul Richey, who augments the companies manufacturing, distribution and business services. The companys small office in San Francisco also added an employee technology and IT services expert John Simpson, who came to the company from Onyx Associates, a regional M&A company that he founded. The employees in the San Francisco office are most likely grateful not just for Simpsons leadership but also for his companionship: his hire brings the investment banking headcount there to all of five people. However slight the firms presence in the West may be now, there are signs that plans are underway for further national expansion. Recently, FOCUS acquired three strategically positioned regional banks (Education Capital, LLC of Washington D.C., Floberg and Associates of Chicago, and Madison Cabe Group, LLC of Charlotte, N.C.) in an attempt to strengthen the firms national reach throughout the country.
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company AGC Engineering to a Swedish engineering solutions company called Alfa Laval. Other international deals in 2007 included the sale of Dunn Solutions Group to Cranes Software, a software solutions provider headquartered in India, and the sale of Advanced Control Systems to the Portuguese company EFACEC.
GETTING HIRED
Worth a try
If you want to join the FOCUS team, your probably should first grasp the notion that since the firm is so small, theres no clear path to employment with the firm via job listings on its web site. However, within the firms contact us section on its site, you can either try charming the firm by e-mailing it directly at info@focusbankers.comor you can try pasting in your resume and cover letter within its online contact form (hey, you never know).
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KEY COMPETITORS
FBR Capital Markets Keefe, Bruyette & Woods Sanford C. Bernstein
EMPLOYMENT CONTACT
www.fpk.com/x/careers.html
THE STATS
Employer Type: Private Company CEO: Giles Fitzpatrick No. of Employees: 153 No. of Offices: 7
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong FIG investment bank Tiny Intelligent niche Decent research house
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Vault Guide to the Top 50 Banking Employers 2009 Edition Fox Pitt Kelton Cochran Caronia Waller LLC
THE SCOOP
Full service
Fox-Pitt Kelton Cochran Caronia Waller (FPKCCW) runs a well-informed ship, with over 60 analysts tracking over 200 bank stocks in the United States, Europe, and Asia. The firm also houses a team of 10 emerging capital professionals who deal in all aspects of ECM, including executing IPOS, rights issues, secondaries, block trades, buy backs, and dribble programs. On the advisory side of things, FPKCCW offers traditional M&A, derivative structures, fairness opinions, financing and strategy. The firm also has an independent private equity vehicle, called FPK Capital, which was launched in fall 2006.
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Encore performance
After Fox-Pitt Kelton broke free of Swiss Re, it got to work right away on building an independent company. In April 2007, one short month before the acquisition of Cochran Caronia Waller, FPK Capital and J.C. Flowers & Co. acquired nearly six million common shares of Encore Capital, a systems-driven purchaser and manager of charged-off consumer receivables portfolios. The purchase made FPK Capital and J.C. Flowers the largest stockholder of Encore Capital, with shares representing about 25 percent of the outstanding common stock.
NOMAD approved
By the end of 2007, FPKCCW had been given nominated advisor, or NOMAD, approval by the London Stock Exchange. The admission was key for the company to have access into the Alternative Investment Market (AIM) and growing its global reach. A nominated advisors main duties are to help new companies gain admission to the AIM. The criteria to become a nominated advisor include corporate finance experience, advisement experience in at least three qualified transactions, and the employment of four or more qualified executives. CEO Giles Fitzpatrick celebrated the decision with the following public statement, We are delighted that our firm is now well placed to act as both adviser and broker to companies on AIM or the Main Market in the U.K. We will continue to develop our strong relationships with intermediaries in the financial services sector to ensure that we can advise on IPOs, secondary issues and public market M&A opportunities as well as act as Nomads and Sponsors to companies in our chosen sector.
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Building up
After receiving NOMAD status, FPKCCWs next move as an organization was to build up its corporate broking team in the U.K. The firm had reason to feel an expansion was necessaryword had just come that it would be advising Tokio Marine & Nichido Fire Insurance on the buyout of Lloyds of Londons insurance subsidiary Kiln, Ltd, a deal that war approximated to be worth 442 million ($872.2 million). The corporate broking team is expected to work closely with the M&A advisory team.
GETTING HIRED
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KeyCorp
127 Public Square Cleveland, OH 44114 Phone: (216) 689-6300 www.key.com
KEY COMPETITORS
Citizens Financial Group National City U.S. Bancorp
UPPERS
Good diversity practices Excellent perks
THE STATS
Employer Type: Public Company Ticker Symbol: KEY (NYSE) Chairman & CEO: Henry L. Meyer III Revenue: $5.64 billion (FYE 12/07) Net Income: $919 million No. of Employees: 20,000 No. of Offices: 906
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DOWNERS
No overtime pay Formal dress always
EMPLOYMENT CONTACT
Visit the careers section under about Key at www.key.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
Cleveland rocks
KeyCorp calls Cleveland home, and the bank walks the talk when it comes to its Cleveland pride, providing the city with several community building programs that tap future investment in Clevelands inner city and undervalued neighborhoods. And the citys denizens seems to recognize one of their ownif you live in Cleveland, chances are pretty good you have a bank account with KeyCorp., since one of every three deposits in the city is held there. The majority of the companys business, however, comes from corporate and investment banking. Key has national businesses including commercial real estate, home equity, investment banking, asset management, education lending and equipment leasing. With banking roots extending back as far as 1825, KeyCorp is now one of the largest financial companies in the nation, with more than $97 billion in assets as of January 2008. The bank offers consumer banking, consumer finance, commercial banking, investment banking and investment management services to clients located primarily in the U.S. KeyCorps 954 KeyCenter branches are spread across 13 states (Alaska, Colorado, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont and Washington), and the bank has the 11th-largest branch and ATM network in the country. In 2007, KeyBank ranked No. 319 on the Fortune 500, the magazines flagship list ranking firms by total revenue.
Unit by unit
KeyCorps consumer banking division offers traditional banking services, including deposits, loans and investment products. The unit also handles the financial needs of small companies with annual sales of $10 million or less. The banks consumer finance arm provides individuals with mortgage and home equity products as well as financing for education. While KeyCorps core offerings target individuals, the bank is trying to focus more on building up its corporate and investment banking arm to better service middle market and large companies, as well as institutions and governments. The division is comprised of four subgroups: KeyBank Capital Markets, KeyBank Commercial Banking, Key Equipment Finance and KeyBank Real Estate Capital. Together, the groups offer investment banking, corporate lending, treasury management, securities trading, foreign exchange, equipment financing and real estate financing. Investment banking services are principally offered to middle market clients through KeyCorps McDonald Investments subsidiary, a full-service investment firm that provides advisory, capital raising services and equity research. KeyCorp rounds out its offerings with investment management services delivered through its Victory Capital Management and KeyBanc Capital Market (formerly McDonald Financial Group) subsidiaries. Victory Capital Management manages investments for all client classes, including corporations, governments and individuals. The unit also manages the Victory family of mutual funds. KeyCorps other investment management subsidiary, KeyBanc Capital Market, focuses on delivering estate planning and asset management services to high-net-worth clients.
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USB aboard
KeyCorp completed its acquisition of Union State Bank Holding Company for $575 million in early January, 2008. The merger helped the bank to beef up its assets by $3 billion and substantially expand its presence in the wealthy southern New York region. All USB branches and ATMs were merged into the KeyBank National Association, giving customers access to 62 additional offices and 84 additional ATMs in the Hudson Valley/metro New York region. The companys decision to expand in New York region caused cutbacks in planned expansions in other regions, including a deal to grow in the Michigan area that was announced in June 2006 and has since been put on hiatus. The merged branches will be overseen by Michael Orsino.
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No savings here
Things started to go awry for the Cleveland-based bank in 2007 when its expanded commercial real estate construction portfolio was hit hard by conditions caused by the collapse of the credit market. The company was forced to take a charge between $110 million and $120 million for the fourth quarter of the year. The fixed income markets also took a beating, adding a $55 million to $65 million loss to KeyCorps books. The company also cutoff its plan to expand its business into the California and Florida markets when it quickly became clear that the extension was ill-timed. Much of KeyCorps $3.7 billion residential property and commercial real estate portfolio was located in these two states. The portfolio quickly went south as a result of the decline in home market, and KeyCorp attempted to stem the bleeding by transferring $1.1 billion of homebuilder-related loans and $800 million of condominium exposure to its special management group. Though the exact nature of the latter transaction was not expressly spelled out, the bank did say that provisions for loan losses will most likely extend into 2008. The losses impacted the companys personnel directly when KeyCorp announced they would be cutting expenses by eliminating jobs in 2008. The bank eliminated 570 existing jobs and 300 open positions in the first quarter of the year.
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GETTING HIRED
Bringing em in
KeyCorp gets leads on employees from recruiters, but it also has a more official means of reeling in potential candidates. KeyCorp conducts four formal college recruiting programs. The analyst program, within the corporate/investment banking division, includes training on financial analysis and rotations in various lines of business, such as portfolio management, global treasury management and commercial banking. Analyst candidates should have a degree in finance or accounting, a 3.3 GPA, relevant internships, strong communication, analytical and interpersonal skills, and knowledge of Microsoft Word, Excel and PowerPoint. The finance management associate program focuses on the treasury, finance/planning and forecasting groups, with associates rotating through these departments. Candidates should have a strong background in finance or accounting, relevant internship experience, and strong communication, analytical and interpersonal skills. The corporate and investment banking analyst program focuses on the areas of real estate capital, global treasury management, fixed income, bank capital markets, commercial banking, syndicated finance, equity capital markets, equipment finance and portfolio management. It requires a BA or BS degree in accounting or finance with a minimum GPA of 3.3, strong analytical skills and relevant work or internship experience.
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Prepare yourself
One insider reports being contacted through a resume I posted online. Still, you need to prepare accordingly before you go in. I suggest you ask as many questions as possible and pay very close attention even before the first interview because I was given what I later found out was a great deal of wrong information about what the position consisted of, warns one insider. So do your homework. Once youre in, the first round of questions asked may consist of your educational background, work experience and all-around personality. One interviewee says you must ask a great deal of your own questions. During the second interview, expect more of a focus on seeing if your personality will mix well with the others working there. If they like what they see (and hear), youll have a drug test and then attend two weeks of training. The first week of training was standing in another branch for a full week and just watching what everyone was doing, says one contact. The second week consisted of computer training and becoming comfortable with the system, he adds, although I ended up learning most of what I knew on the job.
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There isnt much room for creativity when it comes to the dress code, either, since employees are expected to abide by the formal always rules. Sometimes it varies by manager, but most will want formal dress, says one insider. Im in the Midwest, and its a bank. Enough said. Offices, which mostly consist of a small cubicle environment, get mediocre marks from employees. Though spaces are all reasonable and comfortable, theyre not exactly first class.
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KEY COMPETITORS
Burrill & Company Canaccord Adams Cowen & Company FBR Capital Markets Pacific Growth Equities Thomas Weisel Partners
EMPLOYMENT CONTACT
www.leerink.com/careers/overview.html
THE STATS
Employer Type: Private Company CEO: Jeffrey A. (Jeff) Leerink No. of Employees: 200 No. of Offices: 4
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Usually a co-manager on equity deals, good equity research Focused primarily on health care; trading orientation but building in banking Dont know them
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Vault Guide to the Top 50 Banking Employers 2009 Edition Leerink Swann LLC
THE SCOOP
MEDACorp expertise
Leerink Swanns extensive research apparatus, MEDACorp sets it apart from its competitors by providing comprehensive knowledge in almost every aspect of the health care field including clinical medicine, basic sciences, biomedical research, regulatory affairs, intellectual property, public health and policy, managed care, pharmacy management, health care administration, health care facilities, health care information technology, allied health services, and health care consulting. The doctors and researchers who are MEDACorp members receive payment for their consulting services and also gain the ability to network with doctors and senior executives who may help them design and executive clinical trials. Not everyone can be a MEDACorp memberLeerink Swann has a vetting process that excludes employees of publicly traded companies, government workers and anyone the company doesnt feel meets its criteria for acceptance. It also regularly audits the consultants it employs in order to maintain a high level of quality amongst its membership. As a result, Leerink Swann has created a situation where thousands of its research members are exclusive to MEDACorp, giving its clients a unique advantage in consulting.
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generated by the transaction will be used to grow the support the firms currently capabilities and also to branch out into new realms include principal and asset management activities.
GETTING HIRED
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359
KEY COMPETITORS
Barclays HSBC Royal Bank of Scotland
EMPLOYMENT CONTACT
www.lloydstsb.com/about_ltsb/careers_with_us.asp
THE STATS
Employer Type: Public Company Ticker Symbol: LYG (NYSE) Chairman: Sir Victor Blank CEO: J. Eric Daniels Revenue: 16.87 billion (FYE 12/07) Net Income: 3.32 billion No. of Employees: 67,000 No. of Offices: 2,500
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lloyds TSB Group plc
THE SCOOP
Proper English
Lloyds TSB has operations in 27 countries, but its primary focus remains at home in the U.K. According to the firms mission statement, Our vision is to be the best financial services company, first in the U.K., then in other markets. In the U.S., Lloyd offers private banking (headquartered in Miami) and corporate banking (headquartered in New York). Lloyds TSBs wholesale and international banking division is responsible for the banks non-U.K. business. The division includes wholesale corporate markets, asset finance, share registration services, business banking (with a focus on small business), offshore banking, international private banking, international corporate banking and Latin American banking. Its U.K. retail banking division, however, is the cornerstone of the groups business, bringing in about 40 percent of total profit. The venerable Lloyds Bank dates back to 1765, when John Taylor and Sampson Lloyd opened a private banking firm in Birmingham, England. Their sons went on to establish a separate bank, Barnetts Hoares Hanbury and Lloyd, which was later consolidated with their fathers business to become the Lloyds Banking Company. By 1923, Lloyds had taken over 50 smaller firms, and expanded into the European continent. Operations in South America followed in the 1970s, and in 1998, Lloyds merged five of its businesses with the U.K.-based Abbey Life Insurance Company to create Lloyds Abbey Life. By the time the 1990s rolled around Lloyds had a presence in 30 countries, including the United States. In 1995, Lloyds merged with TSB Group and took its current name.
Full disclosure
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Take a look at a Lloyds TSB annual report and youll notice some data thats missing from most banks year-end wraps: disclosures about how many women and minorities hold senior positions at the firm, and a calculation of the banks environmental impact and emissions rates. Maybe thats because Lloyds TSB has little to hide. On a global scale, it is known for having more women in top management than almost all of its competitors; of the FTSE 100 index of Britains largest companies, Lloyds TSB is the firm with the most female executive directors on its board. Although its percentages of minorities in top management hover under 5 percent, Lloyds TSB can brag that over one-third of its general managers (and nearly onequarter of its senior managers) are women. Lloyds TSB was one of the first in the U.K. to develop an environmental risk assessment framework for its business lending it also implemented formal environmental policies in 1996 and has set an emissions reductions target of 30 percent from 2004 levels by 2010. Each year, the bank provides public accounting of its progress toward that goal.
Flood damage
Widespread flooding in the U.K. took a bite out of Lloyd TSBs earnings in the spring and summer 2007, costing the company approximately 110 million in the first six months of the year. The insurance division of the bank saw a 15 percent increase in flood claims for the year, and predicted that inclement weather could take a further toll on the storm-battered country in 2008. As a provision to protect itself from further losses, Lloyds TSB is encouraging its customers to safeguard now against potential flood damage, and is directing concerned callers to its dedicated flooding web site, www.helpimflooded.co.uk.
Successful sales
Deutsche Bank scooped up Lloyd TSBs closed life insurance company Abbey Life in July 2007 amongst stiff competition from European bigwigs Pearl Group and Swiss Re. The bidding war drove the price of Abbey up to 977 million, 104 percent of the companys embedded value. The move was seen as the culmination of a plan that CEO J. Eric Daniels put into place to turn the then-troubled banks finances in order when he joined the company four years earlier. Sir Victor Blank, the chairman of Lloyds
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Vault Guide to the Top 50 Banking Employers 2009 Edition Lloyds TSB Group plc
TSB had high praise for Daniels about the success of the sale, Theres been a transformation not only of the culture of the business but of the dynamics. The results today really demonstrate the progress thats been made. Earlier in the year, the bank made another key sale when it unloaded Lloyds TSB Registrars to Advent International for 550 million. The windfall from the two sales seemed to illustrate a bright future for the bank. In July, the bank announced that it would be raising dividends for the first time in five years.
Staying on track
The good times didnt last for long. As the credit crisis hit stateside, Lloyds TSB found that its credit business would also be affected by the turmoil in the U.S. market. Lloyds TSB Group is the U.K.s biggest provider of personal loans, and the credit crunch stretched across the sea to dip into the banks earnings for 2007. Inevitably, the bank faced write-downs during the year, but in a manageable number of 200 million (or $406 million). The stock lost about 11 percent of its value, but the bank was still valued at approximately 29 billion. Lloyds TSB has disclosed that it has about 181 million invested in U.S. subprime mortgages and asset-backed CDOS. As the fiscal year ended, the company announced that its earnings were expected to be on track with what analysts had predicted.
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GETTING HIRED
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M&T Bank
One M&T Plaza Buffalo, NY 14203 Phone: (716) 842-4200 Fax: (716) 842-4374 www.mtb.com
RANKIG RECAP
Quality of Life #4 Hours #12 Compensation #16 Selectivity #20 Overall Satisfaction #20 Treatment by Managers #22 Best Employers to Work For Diversity #20 Diversity with Respect to GLBT #25 Overall Diversity
THE STATS
Employer Type: Public Company Ticker Symbol: MTB (NYSE) Chairman & CEO: Robert G. Wilmers Revenue: $2.8 billion (FYE 12/07) Net Income: $654 million No. of Employees: 13,544 No. of Offices: 685* *Branches
KEY COMPETITORS
HSBC USA KeyCorp Wachovia Corporation
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UPPERS
A strong sense of teamwork Great exposure to upper management Work/life balance
DOWNERS
Conservative business model Lack of career development planning Bureaucracy
EMPLOYMENT CONTACT
www.mtb.com/employment
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Regional bank Strong locally, unknown nationally Aggressive; theyll buy anyone to get another branch open Average
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Vault Guide to the Top 50 Banking Employers 2009 Edition M&T Bank
THE SCOOP
Buffalos best
M&T Bank has been headquartered in Buffalo, N.Y., since 1856 when the Manufacturers and Traders Bank opened for business. Today, M&T trades on the New York Stock Exchange under its own name and symbol, MTB, which represents its holding companys current titleM&T Bank Corporation. From its base in Buffalo, M&T has extended its reach through New York, Maryland, Pennsylvania, Virginia, West Virginia, Delaware, New Jersey and Washington, D.C. With 685 branches, more than 1,600 ATMs and approximately $66.1 billion in assets as of January 2008, M&T has become one of the top regional banks in the U.S. M&T offers commercial and retail banking services to individuals, businesses, institutions and governments agencies, and also provides mortgage banking, investment advisory, securities trading, mutual fund sales, brokerage services, asset management, leasing, trust services, community development loans and reinsurance. The companys philanthropic activities are carried out through the M&T Charitable Foundation.
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A community bank
Through its community reinvestment program, M&T participates in the revitalization of low- and moderate-income neighborhoods within its footprint. The program is regulated by the Community Reinvestment Act (CRA), which Congress passed in 1977 to encourage banks to play an active role in local development. M&T provides strategic direction and technical
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assistance to the communities in which it works, and also provides access to loan products and grants. Since 1982, M&T has earned the Federal Reserve Banks highest rating on each of its periodic CRA exams. The M&T Charitable Foundation encourages employees to volunteer in their communities, and also makes grants to local nonprofit organizations. One example of the banks commitment to community service was recognized in one of its biggest markets in late 2007, when the Greater Baltimore Committee presented M&T with a Mayors Business Recognition Award for its work in improving South Baltimores Sharp Leadenhall community. In addition, M&T has repeatedly been named one of the nations top corporate donors in BusinessWeeks annual survey of Corporate Philanthropys Biggest Givers.
GETTING HIRED
Plenty of opportunities
Recruiters at M&T look for fit more than anything else," according to insiders. The firm is fairly (or moderately") selective for most positions, with the exception of its executive associate program, which is described as very selective." M&T seeks candidates at a number of schools, including University of Virginia, University of Maryland, Duke, Harvard, University of Michigan, University at Buffalo, University of Rochester, Georgetown, University of Chicago, Cornell, Penn and Carnegie Mellon. If your educational background is from a top-tier undergrad school or one of the recruited MBA programs, and your work experience shows loyalty to one employer with substantial experience, the process runs smoothly," a source says. Adds another, If you make it out of the initial on-campus interview process, they do a good job of giving you opportunities to interview with multiple groups in multiple locations."
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Do you fit?
Dont expect many brainteasers during the M&T recruiting process. Once youve made it to the interview, there appears to be an understanding that you can do or learn the job," an employee explains. The interviews were more for personality and fit." Most candidates will go through a minimum of two rounds of interviews, and typically three or more." For students, the process begins with an initial screening interview done on campus where a high-level executive from the bank interviews you." Those who pass that round move on to a second round in the business area of your choice for on-site interviews. On location, you will interview with a minimum of three people from your area of interest," says a source. If you choose two potential areas of interest to interview with, you could potentially have three to eight interviews the whole day." Executive associate applicants may have as many as 12 interviews with various levels of vice presidents within their area of interest, plus HR. Its a fairly intimate application process that focuses heavily on fit and situational questions." Each round of interviews involves meeting the most senior level people in the target division," with questions like tell me about a time when you led a team," where do you see yourself in five years?" and describe your background." Candidates should also know M&T." Interviewers might ask recruits to tell [them] a little bit more about the company."
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Vault Guide to the Top 50 Banking Employers 2009 Edition M&T Bank
entity so that will give you much more visibility and access in the hiring process." A current insider who interned recently notes, I got paid roughly $18,000 for 10 weeks of work or so. The internship was in Buffalo, so those wages were much better than one would get in New York City on a relative basis."
GETTING HIRED
Sense of pride
The M&T culture is collegial, with a strong sense of pride in the company. Respondents call their bank very down-to-earth, even old-school and pragmatic, with tremendous focus on efficiency. The corporate headquarters takes on the almostMidwestern personality that is prevalent in Buffalo. In other words, this can mean a conservative and traditional feel, though people are generally pretty nice, especially at company headquarters. Other locations have more fragmented cultures, a source reports. Another describes the bank as being distinctly divided between Western New York and the Mid-Atlantic. M&Ts middle-of-the-road size is a benefit for some. I like the size of the company, one insider explains. I felt it was big but not too big, and that I would have a lot of responsibility and visibility right away. The firm is data-driven, and analysis is important to all decisions. The result is lots of committeesvery few decisions are made by a single executive. The conservative business model is slow to adopt new technologies and cautious when it comes to capital spending. Many insiders wish M&T was willing to invest in better technology to lessen the administrative and sometimes very manual burdens on employees. Others say that management should do a better job of explaining how officer promotions work, outlining the key objectives an employee needs to meet in order to move to the next level.
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Lots of access
Unlike some larger firms, M&T offers great visibility to senior management. One source says, Im on a first-name basis with two of the three top executives at the bank, and have excellent access and relationship with the head of the investment banking division." I work very closely with one of the executive VPs," says another contact. Despite a wide difference in tenure and rank, I am treated like an equal. My input is requested and listened to. However, some extraneous layers of bureaucracy can mean that its tough for managers to get things done. If there are any complaints about management, its that there can be generational differencesmanagement sticks to tried-andtrue ways. M&Ts training doesnt get very high marks: Once you are done with the orientation process, additional training is few and far between, an insider complains. It is tough to learn in a vacuum. Another says that openness to training would be useful.
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Lagging behind
Cutting-edge isnt the phrase insiders use to describe M&Ts physical infrastructure. Systems are older, more antiquated, and the dcor is classic bland cubicles, sources say. M&T doesnt like to invest in depreciating assets, so office equipment can be dated, another source agrees. Besides furniture woes, many M&Ters wish the firm had better tech. I think were behind our peers in technology investment, both internal and customer-facing systems, one source opines. Im not saying we should open our wallets, but I think theres room for improvement here. As for the dress code, relationship managers usually dress formally. If youre in other parts of the bank, business casual is the norm. No jeans allowed, though.
Suggested improvements
M&Ts intentions are good when it comes to diversity, but work is needed on retention of minority employees. The bank has recently started a womens networking group for MBA hires to increase advancement of women, which is a good start, one contact says. Oftentimes MBAs are given a same-sex mentor. I think there are opportunities for women, but at the same time, much of the upper levels are comprised of white men. Another source thinks M&T could improve matters by increasing recruitment efforts at prestigious national conferences like the National Hispanic MBA Association and the National Black MBA Association.
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Morgan Keegan
Morgan Keegan Tower 50 Front Street, 17th Floor Memphis, TN 38103 Phone: (901) 524-4100 Fax: (901) 579-4406 www.morgankeegan.com
KEY COMPETITORS
Edward Jones Raymond James Financial
Corporate politics Sometimes tough competing with bigger firms with more resources
EMPLOYMENT CONTACT
www.morgankeegan.com/MK/CareerOpp/default.htm
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Great regional investment bank Too small, too regional Great research Unknown Growth-minded
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THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Keegan
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Analyst accolades
Morgan Keegan may not be located on Wall Street, but its analysts have demonstrated that employees working for the company are certainly in the know when it comes to the Street. The Wall Street Journals 2008 Best on the Street Survey ranked Morgan Keegan equity analyst Harsh Kumar among the top five in the nation for the specialty semiconductor industry. In addition, six Morgan Keegan analysts ranked among the countrys top stock pickers and earnings estimators in the 2008 Financial Times/StarMine Global Analyst Awards. Two Morgan Keegan analysts ranked as No. 1 stock pickers in the survey, and one ranked as a No. 1 earnings estimator.
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GETTING HIRED
All on file
Check out the firms open positions at www.morgankeegan.com/MK/CareerOpp, which are separated by location (headquarters or elsewhere) and division. Candidates for senior positions at Morgan Keegan should expect to go through a very difficult hiring process with two to three interviews. A senior financial planner notes that when she was hired years ago, it was a very easy interviewing process. Now, its a much longer procedure, meeting all management and department employees. Although they can be arduous, Morgan Keegan interviews are generally informal and are reported to consist primarily of questions about experience. I met with professionals from trading, sales and research, says one contact. Another says, No one really interviews. Its a who you know thing at Morgan Keegan. Interested candidates can apply for desired openings through an online application process. Certain departments at Morgan Keegan such as investment banking, equity capital markets and fixed income like to recruit from the top MBA schools in the country, says a source, but its possible to get a job without that credential. If you are sharp and have a good rapport with management, you can get hired. Another contact says that Morgan Keegan mainly recruits by word of mouth, but says the firm usually swings by the campuses of Duke, the University of North Carolina, the University of Virginia, Vanderbilt, Washington University and the University of Texas on a quest for new analysts and associates.
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Family affair
According to insiders, Morgan Keegan is a regional firm with a small, family feeling. Its also competitive, young, challenging and rewarding. The employees are said to be friendly, fun people who have numerous interests outside of work." One source confirms that there is a very flexible culture that rewards people who can make money for the firm. Downsides at Morgan Keegan include competing with bigger firms with more resources, says one insider. But they want results and the good thing, though, is that Morgan Keegan can deliver. As for the dress code, its professional business attire only. Everyone is expected to be in suits, says a contact in Morgan Keegans Memphis headquarters. However, the firm does allow for casual Fridays during the summer. Managers get fairly high marks. One source warns, though, that banking is a tough industry. If you want to get treated with great respect, you should probably work for a government entity, not an investment firm. For those outside investment banking, the work week isnt too strenuous, but junior investment bankers can work long hours. As for climbing up the corporate ladder, one contact believes that getting promoted at Morgan Keegan is largely a function of who you know, not what you know. Another confirms, Corporate politics are terrible. The source, a female banker, also complains that women still fall behind men in pay and management. Another more vocal contact adds, Women are not respected. Cultural and ethnic diversity is not accepted. You are expected to assimilate to move up the ladder.
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KEY COMPETITORS
Fifth Third KeyCorp U.S. Bancorp
UPPER
Active participation in live deals early in career
DOWNER
Currently understaffed at junior banking levels
THE STATS
Employer Type: Public Company Ticker Symbol: NCC (NYSE) Chairman & CEO: Peter E. Raskind Revenue: $9.12 billion (FYE 12/07) Net Income: $314 million No. of Employees: 28,500 No. of Offices: 1,300
EMPLOYMENT CONTACT
www.nationalcity.com/about-us/pages/careers.asp
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Aggressive smaller bank In trouble A good footprint in the Midwest and Florida but not a market leader Mostly retail
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Vault Guide to the Top 50 Banking Employers 2009 Edition National City Corporation
THE SCOOP
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Another arm
National Citys investment banking, public debt, private placements and brokerage products and services are provided by subsidiary NatCity Investments Inc., the firms registered broker dealer. (These services are also marketed under the trade name National City Capital Markets.) The investment banking group focuses on services for the middle market, offering mergers and acquisitions advisory, private placements, public and private capital formation and public offerings of equity and equity-linked securities. Industry groups include business services, consumer and retail, health care and the industrial sector. In the second half of 2007 National Citys investment banking group served as exclusive financial advisor to Dexter Magnetic Technologies, a global magnetic solutions company, in its sale to California-based private equity fund Levine Leichtman Capital Partners. National City also advised International Specialty Alloys and its parent company, Purity Metal Holding Inc., in their sale to Kennametal Inc., North Americas top supplier of metal cutting tools.
Peters turn
In December 2007, Peter E. Raskind, National Citys president and CEO, replaced David A. Daberko as the firms chairman. The move completed the leadership transition that began when Raskind was named president in late 2006, amid speculation that he was next in line to succeed Daberko. (Raskind took the CEO spot in July 2007.) David Daberko began his career at National City as a management trainee in 1968. By 1973, he had become vice president of the bank investment division, and rose to lead the metropolitan lending division a few years later. In the 1980s, Daberko oversaw a merger with Columbus-based BancOhio, becoming CEO of the newly enlarged National City in 1995. Back then National City
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Vault Guide to the Top 50 Banking Employers 2009 Edition National City Corporation
was still considered a regional bank, with a tristate footprint and assets of just $36 billion. It was Daberko who brought National City into the super regional status, expanding the banks footprint beyond Ohio, Kentucky and Indiana and overseeing nearly a dozen acquisitions. At the time of Daberkos retirement at the close of 2007, National City boasted assets of over $150 billion. New top dog Raskind joined National City in 2000 after a 17-year career with U.S. Bancorp. At first he headed the consumer finance division, supervising National Citys consumer lending business. Later he took responsibility for retail banking and mortgage activities, before becoming vice chairman in 2004 and president in 2006. To replace Daberko on National Citys 12member board of directors, the bank tapped chief financial officer Jeffrey D. Kelly, who also oversees the companys commercial banking-national and capital markets businesses.
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Needing a boost
In April 2008, National City Corp simultaneously announced two pieces of not-so-great news: that it had sustained a $171 million loss in its first quarter of 2008 (its third consecutive quarterly loss) and that it will be raising approximately $7 billion from a stable of investors. Leading that pack will be private equity firm Corsair Capital, which stepped up with a $985 million investment. National City will also be selling convertible securities as well as common stock shares for $5 each to try to recoup its losses. The bank was hit hard by the subprime mortgage crisis (and Ohios subsequent housing decline) within the past year, and lost more than 80 percent of its market value as a result.
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GETTING HIRED
GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition National City Corporation
National Citys dress code varies by locations. In many locations, dress is casual always, except for client contact, and many offices have Casual Fridays. A woman in Cleveland adds, Our building is going through construction, so we are currently allowed to wear jeans daily. But casual Fridays also seem to be a norm for offices across the board.
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Nomura
1-9-1, Nihonbashi, Chuo-ku Tokyo 103-8645 Japan Tel: +81-3-5255-1000 Fax: +81-3-3278-0420 www.nomura.com
KEY COMPETITORS
Daiwa Securities Group Merrill Lynch Nikko Cordial
UPPER
Friendly culture
DOWNER
Long hours
THE STATS
Employer Type: Public Company Ticker Symbol: NMR (NYSE) President & CEO: Nobuyuki Koga Revenue: 1,593,722 million (FYE 12/07) Net Income: -67,847 million No. of Employees: 18,026 No. of Offices: 155
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EMPLOYMENT CONTACT
See careers section of www.nomura.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
Cross-border wizard
Japanese-based Nomura Group is one of the worlds largest securities and investment banking firms. Its representation in the Americas is called Nomura Holding America, with U.S. offices in New York, Chicago, Los Angeles and San Francisco. Its four operating divisions in the Americas (equities, fixed income, asset management and investment banking) work jointly with Nomuras businesses in 30 countries around the world, allowing Nomura to conduct plenty of international and cross-border deals. Its broker-dealer is Nomura Securities International. This legend of Japanese finance arrived in New York in 1927, and today, its U.S. offices provide capital raising, mergers and acquisitions advisory, sales and trading, foreign exchange, derivatives, research and asset management. Its M&A group, based in New York, works both domestically and internationally on deals, often collaborating with Nomuras Asian and European staff on divestitures, joint ventures, restructurings and valuations. It has provided advisory services to companies in the consumer, financial institutions, healthcare, industrial, retail and technology sectors. Nomuras equity capital markets group is also based in New York, and offers origination, structuring, marketing, placement of equity-related securities and strategic advice to corporate, institutional and government clients. This group works most closely with Nomura Group staffs in Tokyo, Hong Kong and London, helping non-U.S. companies list on U.S. exchanges, arranging offerings in Asia and Japan for North American companies, offering investment opportunities abroad for U.S. investors, executing global equity offerings and listing North American companies on the increasingly attractive Japanese exchanges.
The son of an Osaka moneychanger, Tokushichi Nomura II was born in 1878, the year the Osaka and Tokyo stock exchanges were founded. At that time, Osaka was Japans business and finance center. After a three-year transcription in the Japanese army, young Nomura joined his father at the family business (called Nomura Shoten, or Nomura Shop). By 1904 the younger Nomura was running the shop, and he decided to add stock sales, trades and spot transactions to his fathers currency exchange business. In 1906 Nomura created an in-house research department, and to this day research is a central aspect of his firms operations. He began publishing a daily newsletter called the Osaka Nomura Business News, which contained stock analysis, economic research and trading reports. Nomura became well known throughout Japan; no other broker at the time was putting out such reports. Thanks to his solid reputation, Nomura and his company survived the Japanese market crash of 1907. A year later, he took his first trip to New York. Nomura returned to Japan with the intention of creating a global finance firm that could compete with the best in America; his first step was to expand his research department and create a translation department so he could become involved in foreign currency-denominated bonds. Underwriting and international trading were ramped up, and by 1917, Nomura Shoten became Nomura Shoten Incorporated. In 1922, Nomura formed a holding company to contain his empire, and three years later his securities division was incorporated separately as Nomura Securities. In 1927, Nomuras dream of opening an office in New York came true. By then Nomuras enterprises included the stand-alone securities division, bond sales, underwriting and commercial banking under the Osaka Nomura Bank name.
Research trendsetter
Long known for its analytic excellence, Nomura supports its investment banking activities in the Americas with fixed income, equity and economic research departments. The Nomura Groups global research team is staffed by about 500 people, of whom 300 are based in the Nomura Financial & Economic Research Center in Tokyo. Their counterparts in the U.S., London and Hong Kong work closely with Tokyo headquarters to provide advisory materials, reports, analysis of emerging markets and securities benchmarks. Nomuras Individual Investor Survey has been issued monthly since April 2006, and is used by many analysts to forecast trends in trading, share prices and sector growth.
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Nomuras research operation was boosted in July 2007, when the firm poached Morgan Stanleys executive director of equity research, Ellen Tseng. Tseng was named Nomuras head of Taiwan research. She will lead the Taiwan team in building up its research coverage capabilities in the local Taiwanese market. Tseng spent six years at Morgan Stanley, before which she worked at ABN AMRO as a research analyst.
Acquiring a Fortress
In December 2006, Nomura spent $888 million on a 15 percent stake in Fortress Investment Group, a New York-based private equity and hedge fund firm with approximately $26 billion in assets under management. According to a statement from Fortress executives, the deal was appealing because it would allow Fortress to sell hedge funds and other products in Asia through Nomuras existing channels. Meanwhile, Nomura CEO Nobuyuki Koga said he has been looking for ways to expand his firm globally. Whats more, Koga added, he wanted to shift Nomura away from its reliance on Japanese stock trading, which accounts for about 30 percent of the groups worldwide revenue.
Instant expansion
Nomuras expansion into the U.S. picked up the pace in February 2007, when it closed a $1.2 billion purchase of American electronic brokerage Instinet Inc. from majority owner Silver Lake Partners. Instinet, a major provider of electronic trading services for institutional investors, boasts over 700 hedge fund clients. Nomura CEO Koga said Instinets high-tech execution technologies will help Nomura expand its capabilities in execution services, especially for American clients. The U.S. wasnt the only country in Nomuras sights in early 2007. In March the firm announced the opening of an office in Moscow. The full-service office will provide investment banking products and services to Russian clients, and as the leading Asian investment bank in Russia, will give Russian companies better access to Asian markets.
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Reporting on the shuttered unit, Forbes wrote, During its second quarter ending in September, [Nomura] largely bailed out of the U.S. residential mortgage market, slashing its exposure from 266 billion ($2.3 billion) at the end of June to just 14 billion ($119 million), about 100 million ($852,000) of which is subprime-related. Nomura has faced challenges in the U.S. residential mortgage-backed securities market which have led to these disappointing results, said CEO Nobuyuki Koga, in a statement. However, we have moved decisively to deal with the issue and have avoided further and protracted losses by taking firm and immediate action. This draws a line under the residential mortgage-backed securities problem. Koga may be right. According to The New York Times, Standard & Poors said its rating on the Nomura group would not be affected by the loss, citing [Nomuras] generally solid performance in other segments like domestic operations.
GETTING HIRED
Worthwhile experience
One intern at Nomura was hired after sending a resume, followed by one round of interviewing consisting of six or seven meetings, all with senior professionals who had a fairly relaxed and polite interviewing style. Internships at the bank can
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be a good way for candidates to get an idea of what its like to be a full-time banker. One intern was tasked with conducting extensive analysis into competitors in the biopharma venture capital market, focusing on size of fund, investment objectives, co-investors and market segmentation. The intern was praised for designing research parameters and appropriate questions, and for analyzing the research results. The intern gained excellent communication skills and a key ability to listen to people through in-depth discussions with venture capital managers. Despite the fact that not that much training was given, and compensation was a little under what most interns got paid, the intern says, I didnt feel that they were ripping me off or anything.
Doing time
Some sources say that experiences at Nomura differ drastically among business groups. There is no movement and no communication between equities and fixed income, according to one respondent. Another points out that hours at the firm can be tough, while one contact is not happy with working 50 to 60 hours per week, but still manages to rarely or never work weekends. Yet another insider, who works 9 a.m. to 7 p.m., says hours are not that bad, but points out that some of the team stays later. Dress code at Nomura is smart, says one source, but the firm allows casual Fridays in some locations. Opinions about the firms office space vary, with some calling it nice and others wanting more space. Nomura gets below-average marks on compensation and training, but scores well on receptivity to women, ethnic minorities, and gays and lesbians.
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KEY COMPETITORS
Evercore Partners Greenhill & Co. Morgan Stanley Goldman Sachs
UPPERS
Tight-knit, informal, collegial culture Most senior bankers are great to work for
THE STATS
Employer Type: Private Company Founder & Chairman: Peter J. Solomon No. of Employees: 46 No. of Offices: 1
DOWNERS
Face time is required Formal always dress code
EMPLOYMENT CONTACT
See careers section of www.pjsc.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Peter J. Solomon Company
THE SCOOP
In November 2006, Peter Solomons old childhood and Harvard buddy Robert Glauber joined the firm as a senior adviser. Since the Cambridge days, Glauber became an important figure in finance; he spent six years as the chairman and CEO of the National Association of Securities Dealers (NASD), the brokerage industrys self-regulatory arm. Glauber had also served as the U.S. Undersecretary of the Treasury for Finance from 1989 to 1992; while working for the government, he chaired the Brady Commission, the task force dedicated to analyzing the stock market crash of October 1987. Glauber must have really wanted to work with Solomonhe certainly didnt need the money, since he earned over $4 million as chairman of the NASD.
Retail king
PJSCs prowess in the retail industry may be helped by the fact that its founder has strong connections at a number of top corporations. Peter Solomon has served as director of a number of public companies, including some now listed on PJSCs client roster. These include Stop & Shop, Office Depot, Phillips-Van Heusen and General Cigar Holdings. Solomon is currently a director of Zagat Survey and Monro Muffler/Brake. Retail-related deals could become even more plentiful for PJSC. A February 2007 Womens Wear Daily report predicted another busy year of mergers and acquisitions in the apparel industry; PJSC managing director Marc Cooper, who went on record for the article, said he expected to see increased activity in the luxury sector, with strategic buyers taking center stage. Its not about filling holes in the portfolios anymore, Cooper said. Its about growth.
Making history
Growth is clearly a primary focus these days at PJSC. According to Chairman Solomons year-end letter, 2006 was the most successful year in Peter J. Solomon Companys 17-year history. The firm completed 40 advisory assignments, including mergers, restructurings, financings and fairness opinions. And PJSC continued to roll in 2007. The firm provided a fairness opinion in Apollo Managements $3.1 billion acquisition of the Claires jewelry and accessories chain, and advised Finish Line on its $1.6 billion purchase of Genesco. The firm also advised a number of other big-name clients throughout 2007: Tokyo Electric Power on its acquisition of Mirant Corporations Philippines operations; McKesson Corporation in its sale to Owens &
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Minor of its acute care medical-surgical supplies distribution business; Dicks Sporting Goods on its acquisition of Golf Galaxy; and Office Depot in its acquisition of Allied Office Products.
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GETTING HIRED
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Theres a range
Insiders disagree about PJSCs salary package. Some say its about average for the Street, others say its well below what the rest of the Street pays and still others say, The firm pays approximately $5,000 to $10,000 over the top of the Street for its bestperforming analysts. A few contacts note that second-year analysts should be careful when interviewing for positions outside the firm. One insider notes that because bonuses are paid so late in the summer, analysts fear interviewing for private equity jobs because they think if senior partners find out about them interviewing, they will be docked on their bonuses. And another respondent says that analysts are ground down with work during their second year and insulted by their pay packages in reward. Perks, however, mostly receive pretty decent marks. The company springs to pay for half of employees gym memberships, offers a $25 dinner allowance for night work, provides all weekend meals, reimburses taxis home past 9 p.m., provides a BlackBerry and offers a fully stocked fridge with juice and soda every day. But insiders also warn that the firm has a strong tendency of pinching pennies, and nickel and diming employees. Practices like questioning taxi cab receipts add up and create bitterness among the junior people.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Peter J. Solomon Company
But bad behavior from the higher-ups seems to be the exception to the rule at PJSC. Insiders say that, Most senior bankers are great to work for and that associates at the firm are very good teachers and managers. Management also seems to take an active interest in developing junior peoples work potential and understanding for the subject matter. Junior analysts are brought to client meetings and participate on conference calls whenever possible, which tends to happen more frequently at a smaller firm like PJSC. And communication is encouraged, as the open-door policy actually means something here.
Look sharp
The firms digs are very nice, comfortable and appealing, and offer great views from the New York offices. Enthuses one staffer, Its one of the nicer I-banking offices I have seen. The offices also have roomy cubicles, and there are multiple conference rooms and spare rooms. Plus, the building is very well maintained. But be prepared to maintain your appearance to match your office surroundings. The dress code has always been governed by a formal always rule, even at the height of the dot-com bubble. And while it can be annoying, its a part of life at PJSC, respondents say. Dont expect to scoot by on charm, either. Appearance is very important and scrutinized and systematically checkedfrom the type of shirt to shaving every day. And although weekends are casual, the protocol for the rest of the week is unyieldingYou have to be fairly well put together every day.
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KEY COMPETITORS
Commerce Bancorp National City Wachovia Corporation
UPPERS
People are very nice and welcomingjust about everyones door is always open Work/life balance at PNC is very good
THE STATS
Employer Type: Public Company Ticker Symbol: PNC (NYSE) Chairman & CEO: James E. Rohr Revenue: $6.7 billion (FYE 12/07) Net Income: $1.5 billion No. of Employees: 28,000 No. of Offices: 1,072
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DOWNERS
PNCs offices need a little updating PNC is not a household name
EMPLOYMENT CONTACT
See careers under About PNC section of www.pnc.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Aggressively growing; strong marketing Their employees dont impress me Harris Williams is a good M&A shop Still going through merger indigestion
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Vault Guide to the Top 50 Banking Employers 2009 Edition PNC Financial Services
THE SCOOP
Strong as steel
The Pittsburgh Trust & Savings Company was founded in 1852, making it that citys oldest bank. After a century of growth and mergers, PT&S was known as the Pittsburgh National Bank, and played an important role in the growth of Pittsburgh industry. In 1982, Pennsylvania rewrote its banking laws to permit statewide banking; Pittsburgh National joined with Provident National in what was, at the time, the biggest bank merger in U.S. history. The convenience of the two entities shared initials made naming easy, giving birth to PNC Financial Corporation. Four years later, the bank stepped outside state borders, merging with Kentucky-based Citizens Fidelity. In the 1990s, PNC spread across its home state and advanced into Ohio, Kentucky and New Jersey. A number of strategic acquisitions brought PNCs business to Florida, Massachusetts, Maryland and Virginia. In 2005, it added Harris Williams, a leading middle-market M&A advisor, as a wholly owned PNC subsidiary. Harris Williams, which in January 2008 was named Middle Market Investment Bank of the Year by Investment Dealers Digest, operates from its own offices in Richmond, Va., Boston, San Francisco, Philadelphia and Minneapolis. By the end of 2007, PNC held assets of $139 billion, making it one of the countrys largest financial services companies. Its retail banking division serves over 2.9 million individual and small business clients. Also included in retail banking is a wealth management group with $76 billion in assets under management. The PNC corporate and institutional banking division includes asset-based lending, real estate lending and financing, credit, treasury management, and capital markets products and services aimed at the middle market. Its PFPC division has 66 million shareholder accounts and $2 trillion in total assets, providing processing, technology and business solutions to the global investment industry. PNCs asset management division is handled by its 34 percent stake in BlackRock, one of Americas largest publicly traded investment management firms with $1.15 trillion in managed assets.
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Casualties of M&A
In March 2007, PNC completed a $6 billion acquisition of Mercantile Bankshares Corporation, an investment and wealth management bank with 240 offices in Maryland, Virginia, the District of Columbia, southeastern Pennsylvania and Delaware. At the time of the deal, Mercantile held $17 billion in assets. Its chairman, president and CEO Edward Kelly III was named a vice chairman of PNC. One month later, PNC announced it would lay off hundreds of Mercantile employees in an effort to save $100 million in postmerger operating costs. The cuts took plan across the entire Mercantile banking network, including Citizens National Bank, Mercantile Bank and Trust, and Annapolis Bank and Trust.
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Vault Guide to the Top 50 Banking Employers 2009 Edition PNC Financial Services
Sealing deals
In December 2007, PNC acquired Lawrenceville, N.J.-based Albridge Solutions Inc., a provider of portfolio accounting and enterprise wealth management services. Albridge, which has assets under management that exceed $1 trillion, provides financial advisors with consolidated client account information from hundreds of data sources, including mutual funds, managed accounts, banking, brokerage, insurance, retirement and more. The firm will become part of PFPC Worldwide Inc., PNCs global investment services subsidiary. The Albridge acquisition enhances PFPCs leadership position and continues the transformation of PFPCs business model, said PNC CEO James Rohr in a statement. In addition to its processing capabilities, PFPC is increasingly a provider of information services. A couple months earlier, PNC completed its acquisition of another New Jersey company, Yardville National Bancorp, for $403 million. Yardville is a commercial and consumer bank with $2 billion in deposits and 33 branches in central New Jersey and eastern Pennsylvania. With this purchase, PNC expects to become No. 1 in deposit share in the wealthy Mercer, Hunterdon and Somerset Counties of New Jersey, which have three of the highest median household incomes in the U.S. As of September 30, 2007, the combination of PNC and Yardville had approximately $134 billion in assets and 1,107 branches. PNC made another move in the mid-Atlantic region, in July 2007, when it agreed to acquire Lancaster, Pa.-based Sterling Financial Corporation for $565 million. Sterling provides banking and other financial services, including leasing, trust, investment and brokerage, to individuals and businesses through 67 branches in Pennsylvania, Maryland and Delaware. Sterling has built a leading deposit share in several Pennsylvania counties. PNC expects the acquisition to make it No. 1 in deposit share in central Pennsylvania.
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Vault Guide to the Top 50 Banking Employers 2009 Edition PNC Financial Services
PNC will continue to offer wealth management and investment products and services as part of the retail bank. Following the transaction, Hilliard Lyons will continue to supply PNC Investments with back office and other support services. PFPC Worldwide will remain as Hilliard Lyons source of separate account management for its clients third-party asset management relationships.
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GETTING HIRED
Get close
Some insiders think Pittsburgh-based PNC cant be as selective as a firm in New York simply because of its location. Others think the firm is very selective, and a corporate finance analyst believes some lines of business are more difficult to be hired into than others. Selectivity is fairly high, says another source, although you can set yourself apart by building close relationships with the recruiters. Candidates who graduate from a well-known school in PNCs footprint are said to have an advantage. Recruiting takes place on a number of campuses, including University of Pittsburgh, Penn State, University of Pennsylvania, Georgetown and Hampton. The firm goes as far west as Notre Dame and maybe the University of Michigan, adds an insider. It goes as far south as Atlanta.
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Vault Guide to the Top 50 Banking Employers 2009 Edition PNC Financial Services
In addition to cash, ex-interns report receiving free housing as well. Many appreciate the weekly firmwide intern activities designed to build camaraderie and learn more about other areas of the bank. PNC also works with other local companies to arrange after-work functions with interns all over Pittsburgh. Throughout the firm, PNC interns work involves various projects that range in difficultybut never mindless busy work. Several people who took part in the internship program during college say they returned to campus as seniors with a job offer already in hand.
Open book
The culture is one of open communication, insiders say. Others say PNCs corporate culture is very conservative though insiders say that people are very nice and welcoming. Theres a focus on producing exceptional work, but employees still have fun. The firms emphasis on teamwork and community means cordial relationships with peers, managers, and even the security at the front desk. I would characterize our culture as very un-bureaucratic, an analyst says. Just about everyones door is always open. Its a low-stress environment, another source agrees. Most find that PNC is a great learning experience because people are friendly and always willing to answer questions and help with problems that may arise. Despite the hardworking atmosphere, most employees are laid-back. Diversity at the firm is supported by members of an employee resource group who meet and offer their suggestions to the CEO. One woman says that at least some of their recommendations are implemented annually. Others say that there are a lot of women in managerial, senior or executive positions throughout the bank, and one source points out that PNC provides benefits for domestic partners. However, in terms of ethnic minorities, a few respondents say that the firm doesnt seem to be very diverse. A PNC veteran says theres a lack of effective diversity strategies. Another insider believes the firm could make a better investment in building long-term relationships with smaller organizations that target minority and womens groups.
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Vault Guide to the Top 50 Banking Employers 2009 Edition PNC Financial Services
A sweet balance
One source speaks for many when he says, Im happy with my job but would like an increase in salary. While compensation woes are common, respondents do enjoy perks like a top-notch 401(k) plan with a 100 percent match (up to 6 percent of salary), discounted bank products, company stock at discount and a pension plan. PNC also supports volunteering employees are provided up to 40 paid hours of volunteer time each year for volunteer activities at child care centers related to PNC Grow up Great, the companys signature cause, and allows employees to set aside a portion of their pre-tax earnings for transportation and health care costs. The firm also offers discounted pricing on several services and retail products. The work/life balance at PNC is very good, with sources saying they work a maximum of 50 to 60 hours a week. People typically work from 8 a.m. or 8:30 a.m. to about 5:30 p.m., a corporate finance insider offers. Even high-level management seems to keep within a 40 to 60 hour workweek. Even in investment banking, one analyst puts his hours at 50 to 60 per week and the only regular weekend work is a few hours to straighten things out for the week on Sundays. Of course, the load can depend on deadlines and workflow, but at PNC the emphasis is on work completion and not time spent at the office. Another contact notes, I have a little discretion as to when I want to come in. I can come in a half-hour early, take a short lunch and leave early. On a typical day, your boss expects you to leave at 5 p.m.
Dress appropriately
PNCs offices need a little updating, say insiders. There are cubicles everywhereor, as one Pittsburgh-based respdondent puts it, bland cubicles and bad chairs. Space is limited, and one woman says the firm can be stingy with small and silly, yet very frustrating, things like making color copies or buying office supplies. She adds, I know several departments that guard the key to the supply closet. When this happen, and the CEO is getting tremendous bonuses, it is very frustrating for employees. At least theres some comfort to be found in the PNC dress code, which has its own in-house term: business appropriate. This really just means you dress depending on the situation, an insider explains. The standard dress is business casual, but if you are on a client meeting then you may need to adjust accordingly. Know your calendar and you will be fine. The business appropriate code tends to be more formal for client facing roles in general, and whenever vendors or suppliers are present. For men, typical daily wear involves slacks and an Oxford shirt or golf shirt, and for client meetings, its suits or sport coats.
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Regions Financial
417 N. 20th Street Birmingham, AL 35203 Phone: (205) 944-1300 Fax: (205) 326-7756 www.regions.com
KEY COMPETITORS
Bank of America SunTrust Banks, Inc. Wachovia Corporation
UPPERS
Excellent training Very diverse
THE STATS
Employer Type: Public Company Ticker Symbol: RF (NYSE) Chairman & CEO: C. Dowd Ritter Revenue: $8.07 billion (FYE 12/07) Net Income: $1.25 billion No. of Employees: 33,000 No. of Offices: 2,000
DOWNERS
Pay could be better Advancement often requires relocation
EMPLOYMENT CONTACT
See careers section of www.regions.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Regions Financial
THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Regions Financial
universities. According to Cuomo, some banks and private loan companies paid schools kickbacks to earn preferred lender status on lists provided to students. At the time of Regions subpoena, Citi had already agreed to pay $2 million to settle the matter; Sallie Mae, the nations biggest student lender, also ponied up $2 million. In July 2007, Regions, along with Wachovia and National City, agreed to sign Cuomos code of conduct, which included bans on giving anything of value to any college in exchange for any advantage sought by the lender and bans on giving colleges any financial benefits whatsoever to get on a colleges preferred lender list, among other provisions. Regions did not have to pay a fine.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Regions Financial
post. According to Birmingham Business Journal, Parkers participation on the council is recognition of the critical role the human resource profession plays in helping employees manage health care, prepare for retirement and plan other aspects of their financial future. Parker said in a statement, Now more than ever, financial literacy is a critical issue for every American, no matter their age, income or background. As a human resources professional, I am proud to be a part of such a timely effort, because HR can and is making an important contribution.
GETTING HIRED
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Cough it up
The pay at Regions Financial could be better, say insiders. One source says the firm has cut back benefits tremendously in the last few years, while CEOs and their peers make their bonuses. Another source, who calls compensation at Regions fair, says salary increases come with hard work over a number of years. Some bosses are more attentive and generous than others, which sources say is a large part of the game.
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Contacts also grumble about the lack of advancement within the company. An insider blames the problem on location, saying, Id have to move to the corporate headquarters in Alabama to get promoted. Another agrees, Advancement often requires relocation, and for a lot of our women, it is not feasible. Still, one source believes, Advancement can be obtained if you perform and make the numbers, but adds, If you dont, it can be the door.
Fun times
Regions is a very diverse place to work, says one insider. The cultural atmosphere is very fun. Although one insider admits that with some individuals, you do see different treatment between males and females. But the firms treatment of ethnic minorities mostly receives high marks. When it comes to gays and lesbians, from what I have observed, the company seems receptive, says one insider. As for what lies ahead, Regions just recently merged from AmSouth and their stock prices have dropped so low that the potential to be bought out is very high. Because of this, there have been several building appraisals done in order to determine value for other companies to buy out. Also part of the fallout are management positions, which are fading out. Additionally, some branches are being turned into satellite branches.
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RANKING RECAP
Quality of Life #6 Hours #9 Offices #23 Best Employers to Work For Diversity #16 Diversity with Respect to Minorities #17 Diversity with Respect to GLBT #21 Overall Diversity
KEY COMPETITORS
Cowen and Company Stifel Financial Corp. William Blair & Company
THE STATS
Employer Type: Wholly Owned by H&R Block President: Hector J. Cuellar No. of Employees: 110 No. of Offices: 6
UPPERS
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DOWNERS
Pay needs to be improved Male-dominant environment
EMPLOYMENT CONTACT
See "careers" at www.rsmequico.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition RSM EquiCo Capital Markets
THE SCOOP
Keeping active
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The firm has been busy when it comes to recent transactions, , completing 29 deals during the first six months of 2008. In June 2008, RSM EquiCo Capital Markets advised Numet Engineering on its sale to ODIM Inc., a transaction valued at approximately $21 million. Within the same month, RSM EquiCo led the negotiations and acted as advisor to DesignPac on its sale to 1-800FLOWERS.COM for $38.25 million. Also within 2008, RSM initiated a $150 million purchase of oil pump manufacturer Concentric to Haldex AB. In addition to leading the negotiations, the firm also acted as Haldexs advisor.
A good year
RSM EquiCo Capital Markets had to be pleased at the end of 2007, when it clocked in 47 completed transactions and $1.7 billion in liquidity for customers. Additionally, the firm closed its 200th transaction. It also boosted its average deal size to $35 million, up from $31.7 million the year before. The firm also marked its first transaction with an Indian buyer as Batliboi Ltd acquired Quickmill, Inc.
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Vault Guide to the Top 50 Banking Employers 2009 Edition RSM EquiCo Capital Markets
GETTING HIRED
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Ad hoc internships
RSM offers internships, but on an unofficial basis. The program is essentially ad hoc hiring based on who someone may know at the firm. The roles are often filled by children of top executives. For this reason, participation is not critical, but it certainly helps with future employment. Interns prepare presentations and marketing documents, and potential lists of targets. It can be an important opportunity to gain real-life experience in this environment. A contact says, An internship helps you get hired full time only if you go into it knowing modeling and financial analysis, research and Excel. Its not a good training ground for those unfamiliar with finance. Some feel the program offers no advantage over non-intern applicants.
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Vault Guide to the Top 50 Banking Employers 2009 Edition RSM EquiCo Capital Markets
Advancement is very meritocracy-based, and there is a high degree of responsibility placed on junior and midlevel staff. In fact, senior leadership encourages voicing differences in opinion, and encourages employees to actively manage their own careers by making offers to supervisors regarding advancement. At times, success is harder earned than it should be, but the consensus is that RSM is an easygoing firm compared to the rest of investment banking, which creates a very positive working environment. Some say it can feel very top heavy.
Not cutting it
Although compensation is meritocracy, most RSM insiders are not happy with their pay packages. Pay is subpar compared to other banks. Most feel as though the pay needs to be improved in order to keep and attract quality talent. Bonuses are tied to deal fees once you are expected to help generate fee income. This can be quite discouraging if your deals dont close, because it feels as though there is a disconnect between bonus and effort. A contact says, The comp structure at the associate level does not work. It seems unfair to link compensation to deals closed when the associate has less direct impact on whether a deal closes than the VP running things. Bottom line: If you want to get rich and retire at 35, this isnt the place to do it. Besides not being thrilled about the bonus structure, RSM employees arent offered much in the way of perks. There is a less than enticing employee stock purchase program through which employees get a 10 percent discount on the parent companys stock. The firm offers discounts at local gyms and has a free gym in the building. Meals can be ordered after 7 p.m. on your company card, and bankers can take advantage of garage parking and education reimbursement.
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Vault Guide to the Top 50 Banking Employers 2009 Edition RSM EquiCo Capital Markets
Especially since no one goes out of their way to make sure you know what you need. Training is becoming more formalized, although its still rudimentary and nothing that actually helps you learn M&A.
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RANKING RECAP
Quality of Life #7 Overall Satisfaction #13 Treatment by Managers #15 Best Employers to Work For #20 Training Diversity #20 Overall Diversity
KEY COMPETITORS
First Tennessee Howe, Barnes, Hoefer & Arnett Janney Montgomery Scott Keefe, Bruyette & Woods Stifel Financial Corp.
THE STATS
Employer Type: Private Company Senior Managing Principle: James J. Jimmy Dunne III No. of Employees: 270 No. of Offices: 6
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UPPERS
Constant exposure to partners and senior bankers Employees are treated very well
DOWNERS
Most people have never heard of us Little formal training
EMPLOYMENT CONTACT
Follow the careers link at www.sandleroneill.com.
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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CAREER LIBRARY
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Vault Guide to the Top 50 Banking Employers 2009 Edition Sandler ONeill + Partners, L.P.
THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Sandler ONeill + Partners, L.P.
Dunnes diligence and relentless focus played a major role in rebuilding Sandler ONeills business in 2001 and 2002. Im kind of a nut on the figures, he said, so I kept all our [financial] figures at my home. Id go through them overnight. And that was extremely helpful in rebuilding. At one point all we had was that.
No ampersands, please
In 2006, Sandler ONeill unveiled a brand-new look: meet Sandler ONeill + Partners. The firm had begun working with communications firm Doremus to rebrand itself in 2006, choosing as its motto The Power of Plus. (In other words, Sandler ONeill & Partners is old news.) The current campaign takes The Power of Plus campaign one step further, using the + factor to show clients that Sandler ONeill isnt just about doing deals but also about achieving business potential. The campaign included a new firm web site and an advertising onslaught aimed at CEOs and CFOs of regional banks and financial institutions, as well as buy-side investors. Regular readers of Golf magazine, Bloomberg.com and Independent Bankerand anyone who uses a Bloomberg terminalwill see a lot of Sandler ONeill in 2007. In a unique twist, many of the ads will include names and phone numbers for top Sandler execs, to prove the point that Sandler ONeills people are standing by for their clients.
GETTING HIRED
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CAREER LIBRARY
405
Vault Guide to the Top 50 Banking Employers 2009 Edition Sandler ONeill + Partners, L.P.
Small-firm feel
Spend a day at Sandler ONeill and youll find a generally collegial atmosphere that promotes a proactive approach to the job. The firms work hard, play hard environment lacks the need to put in face time and some of the other political requirements of larger firms. Employees of this meritocratic firm are given a high responsibility level and room for advancement. Investment banking deal teams tend to be small, which provides great experience for junior bankers. There are many opportunities for career advancement, and theres lots of deal exposure. Sandlers smaller-firm feel offers flexibility and creates an environment in which everyone is very accessible. Junior bankers enjoy constant exposure to partners and senior bankers, and sources at all levels feel appreciated and well compensated. Theres a lot of interaction and idea bouncing among co-workers. Sometimes it feels almost like a family at Sandler, because the firm really goes above and beyond to assist employees experiencing personal problems. As with any firm, there are a few egos, but on the whole, most people are friendly, intelligent, knowledgeable about their fields and helpful to others. Some complain that there is a certain degree of monotony to the work, which can be redundant and tiresome. And travel destinations are never exciting. But the consensus among Sandler insiders is that their firm treats employees very well.
Free lunch!
Sandler bankers feel well compensated. In addition to salary and bonus, employees are entitled to the firms non-matched 401(k) program, along with a profit sharing. And employees at the level of associate director and above get a business development expense account. Sandler, through its relationships with private banks, offers great wealth management services to employees as well. Bankers get free catered lunch everyday, and a $25 dinner allowance if working past 8 p.m. (Car service is also provided after 8 p.m.) Snacks are always available from the firms stocked pantry, and employees are very generousextra sports tickets and such can usually be found for no cost.
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Reasonable hours
On the whole, Sandler has generally reasonable expectations about work hours, although some feel as though they need to be accessible at all times. Workload is in proportion to compensation, and most people have flexibility to work at home outside of normal office hours, which are considered 8 a.m. to 7 p.m. Still, it is not uncommon to find bankers logging up to 90 hours per week including weekends. Some nearly always work on the weekends, but most can limit it to one weekend day. Hourly requirements can fluctuate wildly depending on deal flow and projects. The rule of thumb is, stay as late as you need to, and leave as early as you canwithin reason.
Learning opportunities
Bankers at Sandler ONeill enjoy free interaction with management. Juniors work directly with managers and are not micromanaged. Its a place where everybody is treated with respect, regardless of rank. A contact says, I have been treated better at Sandler than any other firm I have ever worked at. The senior bankers are uniformly sharp, helpful and respectful. Training at Sandler could be a little more helpful. There is little formal training, so bankers are expected to learn on the job. One insider says, Depending on your learning style, this is either a positive or a negative. Learning at Sandler requires you to be self-motivated and proactive, because nobody is going to hand anything to you. The bright side is, there is more to be taken than at bigger shops. Bankers are afforded many opportunities to learn.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Sandler ONeill + Partners, L.P.
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CAREER LIBRARY
407
Scotiabank
Scotia Plaza 44 King Street West Toronto, Ontario M5H 1H1 Canada Phone: (416) 866-6161 Fax: (416) 866-3750 www.scotiabank.com
KEY COMPETITORS
CIBC World Markets RBC Capital Markets TD Securities
EMPLOYMENT CONTACT
See careers link at www.scotiabank.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Strong international presence, stays out of the headline news Strong regional bank, weak globally Growing; great place for women Great commercial bank, weak capital markets group
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THE SCOOP
Down South
Scotiabank maintains six locations in the U.S.Atlanta, Chicago, New York, San Francisco, Houston and Portlandfrom which it caters to large national and multinational corporations through its subsidiary, Scotia Capital. Scotia Capital has operated in the U.S. for more than a century, overseeing the banks global relationships with large corporate, institutional and government clients. The subsidiary specializes in syndicated lending, corporate debt and equity underwriting, mergers and acquisitions, fixed income and institutional equities sales and trading, foreign exchange, derivatives and precious metals products and services.
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In January 2008, Scotiabank appointed Mike Durland co-chairman and co-chief executive officer of Scotia Capital and head of global capital markets. As co-chairman and co-CEO, Durland takes over the global capital markets responsibilities of John Schumacher, who left the company after more than a decade of service. Durland joined Scotia Capital in 1993 and has held various management positions, including managing director of derivative global products. In his new position, Durland will work alongside Stephen McDonald. The company also appointed John Madden, vice chairman capital markets group, and Barry Wainstein, vice chairman, global head of foreign exchange and precious metals, as vice chairmen and deputy heads of global capital markets.
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International expansion
Scotiabank Group announced in December 2007 that it had purchased controlling interests in BBVA Crecer AFP, a pension fund in the Dominican Republic, and its related insurance company, BBVA Seguros. The companies did not disclose the terms of the agreement. BBVA Crecer AFP has more than a half million affiliated and RD$6.5 billion in assets under management, representing a 32 percent market share (the largest in the Dominican Republic) by number of affiliates.
Pay up
In 2007, the bank became involved in a controversy regarding ATM fees. Canadas Federal Finance Minister Jim Flaherty first raised the subject in March, contending that Canadians overpay withdrawal fees for using banks ATMs they do not have an account with and raised the possibility of a government intervention to force the cessation of fees. Scotiabanks CEO Richard Waugh fired back, noting in a conference that if people use banking services, one way or another, people pay for banking services they use, adding, thats the way we have to run a very profitable, very safe and very efficient bank.
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GETTING HIRED
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It seems one way the firm attempts to achieve that balance is to truly embrace and practice flexible and mobile work arrangements. Though you are expected and required to spend the necessary hours to complete your assigned tasks, regardless of the number of hours paid, hours for most employees tend to fall somewhere within the range of 40 to 50 per week. Sometimes after-hour demands are extensive, but in general, hours are fair, believes this insider. And while employees are not compensated by money as far as overtime goes, they can take the extra time off as needed. The firm offers employees an array of perks (though they tend to vary with location), from an employee share ownership plan to free banking within reason. One insider says when it comes to stocks, the bank purchases 50 cents for every $1 employees invest. On an annual basis, the company awards its employees a set number of what it calls flex credits that they can use to buy company benefits or take as cash. The company also offers flex hours, flex days and telecommuting options.
Fancy pants
While the firms official policy on dress leans toward business casual with casual Fridays, there seems to be an employee consensus toward keeping things a little more elegant. I am more comfortable with more formal dress, admits one insider. Another agrees, noting that though sometimes summer dress is a little more casual, dress shouldnt swing toward overly casual. I dont think jeans are appropriate.
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Receiving recognition
The firm is all-inclusive, and offers equal opportunity to women and men, insiders report. And those outside Scotiabank seem to agree as well. The firm was honored with the 2007 Catalyst award for their Advancement of Women initiative. Presented to just a few companies per year, the award singles out efforts toward developing womens careers. Scotiabanks recruitment and retention of ethnic minorities receive high marks, though respondents dont seem to recall an official company policy regarding gays and lesbians. My location is rural, and clients are conservative, says one insider. However, I have never felt my firm has any opinion on gays and lesbians. Its just not an issue.
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CAREER LIBRARY
411
Stephens Inc.
111 Center Street Little Rock, AR 72201 Phone: (501) 377-2000 Fax: (501) 377-2666 www.stephens.com
UPPERS
Stephens takes care of its employees Even under bad market conditions, Stephens pays its employees extremely well
DOWNERS
Southern culture and working in Little Rock arent for everyone
EMPLOYMENT CONTACT
www.stephens.com/stephens/careers
THE STATS
Employer Type: Private Company Chairman, President & CEO: Warren A. Stephens No. of Employees: 700+ No. of Offices: 24 (Worldwide)
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
412
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Vault Guide to the Top 50 Banking Employers 2009 Edition Stephens Inc.
THE SCOOP
Finance whizzes
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Stephens Inc. offers its services through six business lines. Its private client group handles wealth management and investment management, the latter through Stephens Investment Management Group, also known as SIMG. As of June 2008, SIMG managed more than $359 million for institutions, retirement plans, insurance companies, foundations, endowments and individuals. (SIMG was formed in 2005 when Stephens poached a small-cap investment team from AIM Investments of Houston.) Stephens Capital Markets includes equity sales and trading, fixed-income sales and trading and investment banking. The IB team, which consists of about 70 professionals, focuses on small- and middle-market mergers and acquisitions advisory. Its industry expertise includes aerospace and defense, building products and construction services, business services, consumer and retail, financial services, health care and life sciences, information technology, power and energy solutions, telecommunications and media, and transportation and logistics. Stephens has been active in public finance since its beginning, and today, its public finance group claims clients dating back to 1960. Its financing efforts typically involve governments, schools, utilities, housing authorities, not-for-profit organizations, industrial development and health care organizations. Stephens Capital Management (SCM) has been a registered investment advisor since 1982, and currently supervises portfolios of equity and fixed-income assets worth over $2 billion. Through Stephens Insurance the firm provides personal and business insurance solutions. Finally, its award-winning equity research division covers more than 200 stocks in the aerospace and defense, consumer, financial services, health care, industrial, IT, technology and transportation sectors.
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CAREER LIBRARY
413
Vault Guide to the Top 50 Banking Employers 2009 Edition Stephens Inc.
On the Thomson Financial (now Thomson Reuters) investment banking league tables for 2007, Stephens ranked No. 24 in both U.S. announced M&A deal volume and U.S. completed deal volume, advising on 18 transactions valued at $27.9 billion and 18 deals worth $28.4 billion, respectively.
No. 1 in Arkansas
A November 2007 report by Arkansas Business confirmed Stephens place at the top of the states financial community. According to the paper, Stephens Inc. remains, by far, the largest broker-dealer in Arkansas, and its Stephens Capital Management division is still the states largest registered investment advisor. With 295 registered stockbrokers, Stephen far outpaces second-place brokerage Edward Jones, which had just fewer than 170 brokers. Heading into the final quarter of 2007, Stephens Capital Management reported $2.85 billion in assets under managementa 10 percent decline since the same period in 2006, but enough to maintain SCMs No. 1 ranking.
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GETTING HIRED
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Vault Guide to the Top 50 Banking Employers 2009 Edition Stephens Inc.
managing directors. Dinner was followed by a trip to a local brewery to mingle with everyone else in the department, including employees from other offices in different cities. The Saturday interviews started at 8 a.m., offers one contact, and there were eight of them, with people ranging in rank from associate to MD to the head of the department. The source adds that the firm is mainly after personality and fit, but a few simple finance questions were asked. Another contact reports that the firm wont ask you anything too finance-y, but it might ask questions like How do you run a DCF? and How do you value a company? Another question candidates might get is Why do you want to live in Little Rock?
Southern flavor
Stephens harbors a culture thats definitely Southern. And it may have quite a lot to do with the fact that most employees come from the South, so you should be prepared for the culture if you are not from around there. And the culture also emphasizes a generalist approachanalysts are expected to work on a wide variety of assignments, rather than being forced into a particular industry and product. Employee morale is quite high at Stephens, and it being the largest full-service investment bank headquartered in the South as well as family-owned only helps to boost this morale. Stephens takes care of its employees, says one insider. Even under bad market conditions, Stephens pays its employees extremely wellmore than I would have expected after talking to my friends on Wall Street. Explains another contact, If you enjoy doing things outdoors, being in Little Rock puts you within 20 minutes of hiking, biking, water sports, huntingyou name it. And because Little Rock is much cheaper than New York, boasts one insider, its feasible to get an extremely nice and large apartment for $1,000 a month that that would cost $3,000 to $4,000 in New York City. However, one former insider calls Stephens culture somewhat good ole boy, explaining that some people were hired because they were smart, while others were hired because their fathers were golfing buddies at Augusta with the higher-ups. The contact concedes, though, that the corporate culture fosters learning at all costs. Stephens also fosters loyalty, say insiders. By looking to promote junior bankers from within, observes a source, they have an extremely loyal employee base. Its not uncommon for bankers to have come to Stephens right out of college and stay there until they retire, after having made millions.
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Staying power
Sources say one major perk is the continuing stability of the firm. Since they are owned by the Stephens family, the bank can readily survive bad times without mass layoffs. The firm also offers other perks that are praised by employees. After six months of work, you are given two weeks of paid vacation, notes a contact, but the department is flexible, and gives you a day off around Christmas and at Thanksgiving, and makes allowances for weddings and other important events. As a private company, Stephens doesnt offer stock options, but they match your 401(k) with a contribution of up to 2 percent of your pay,
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CAREER LIBRARY
415
KEY COMPETITORS
FBR Capital Markets Raymond James Financial Wachovia Corporation
UPPER
Extremely professional, collegial and teamoriented.
THE STATS
Employer Type: Public Company Ticker Symbol: SF (NYSE) Chairman & CEO: Ronald J. Kruszewski Revenue: $793.09 million (FYE 12/07) Net Income: $32.17 million No. of Employees: 3,209 No. of Offices: 181
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DOWNER
Not a well-known name in investment banking
EMPLOYMENT CONTACT
Follow the careers link at www.stifel.com
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
St. Louis co-manager powerhouse Only heard of them because they give out research reports"
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Vault Guide to the Top 50 Banking Employers 2009 Edition Stifel Financial Corp.
THE SCOOP
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Record results
In 2007, Stifel brought in a record $793 million in total revenue, up from the $471 million it earned in 2006. Net income, meanwhile, doubled, rising to $32.17 million from the $15.4 million it brought in the year before. Its individual business units all had great years. Stifels private client group brought in record net revenue in 2007 of $436 million, a whopping 88 percent increase from the previous year. (The results were mostly due to the acquisition of Ryan Beck & Co.) Stifels equity capital markets arm also posted record net revenue of $238 million, a 59 percent jump from 2006. Meanwhile, the firms fixed income capital markets group brought in record net revenue as well$65 million, a 21 percent increase from 2006.
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CAREER LIBRARY
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Vault Guide to the Top 50 Banking Employers 2009 Edition Stifel Financial Corp.
GETTING HIRED
Time it right
Getting Stifel to sit up and take notice of your resume may depend on when you happen to apply during the course of the year. Largely, getting hired at Stifel varies by department and a lot depends on timing, reports one insider. Regardless, job seekers can try their luck at the careers link at www.stifel.com, where they can fill out a detailed online application, read thorough descriptions of open positions and learn about upcoming job fairs coming to their area. And be aware before beginning the application processthe firm also requires completion of criminal background checks.
A laid-back team
In terms of company culture, Stifel is a meritocracy that is relatively laissez-faire. Insiders also call the atmosphere at Stifel Nicolaus extremely professional and collegial and team-oriented. For the most part, everyone gets along and tries to help the firm succeed as a whole. One even goes so far to call the firm by far the best company that I have ever worked for. Compensation and perks receive positive feedback as well. One insider calls the stock in the company offered to employees a good upside. Sources also revel in a business casual dress code with casual Fridays. We usually also go casual between Memorial Day and Labor Day, says one insider.
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KEY COMPETITORS
Bank of America Wachovia Corporation
RANKING RECAP
Quality of Life #9 Hours #17 Training #25 Best Employers to Work For Diversity #12 Diversity with Respect to Women #17 Diversity with Respect to Minorities #18 Overall Diversity #18 Diversity with Respect to GLBT
THE STATS
Employer Type: Public Company Ticker Symbol: STI (NYSE) Chairman & CEO: James M. Wells III Revenue: $8.26 billion (FYE 12/07) Net Income: $1.63 billion No. of Employees: 32,323 No. of Offices: 1,701
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UPPERS
Opportunities to learn and grow Exceptional managers The self-directed culture
DOWNERS
Were an old bank with old systems Low pay relative to other firms Overly conservative
EMPLOYMENT CONTACT
See www.suntrust.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
Good quality traditional retail banking On the decline Solid regional bank Eyes bigger than belly
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CAREER LIBRARY
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Vault Guide to the Top 50 Banking Employers 2009 Edition SunTrust Banks, Inc.
THE SCOOP
Deep roots
SunTrusts investment banking arm, SunTrust Robinson Humphrey, got its initial start in 1894 as the Robinson-Humphrey Company. In 2001, impressed with its investment banking record, SunTrust acquired the firm. And in 2007, SunTrust integrated its corporate banking, investment banking and capital markets units and packaged them as SunTrust Robinson Humphrey. Under the umbrella of the unit, SRH offers capital raising, strategic advisory, risk management, investments and treasury and payments services. And the resulting unit has kept nothing if not busy, advising on a number of deals, including one of its latest: advising Matria Healthcare Inc. on its sale to Inverness Medical Innovations Inc. for $1.12 billion in February 2008.
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Stepping down
Effective on Jan. 1, 2007, CEO L. Phillip Humann retired from the bank after serving as the firms chief since 1998. Taking his place was James M. Wells, who had served as SunTrusts president and chief operating officer since 2004. Humann stayed on with the bank as its executive chairman until February 15, 2008, when Wells assumed the additional title and responsibilities.
Office space
In April 2007, the firm revealed that it planned to jettison much of its self-titled space in Orlando. And SunTrust acknowledged that its efforts to scale back office space wont be taking place in just Florida. Bank spokeswoman Susie Findell said that the vacating of offices is planned to be a companywide effort that will take place from Maryland to Miami. The firm also revealed that the endeavor is part of a broad effort being undertaken by the company in order to cut costspart of the companys excellence in execution plan. In May 2007, news came to light that the bank does not plan to renew its downtown Memphis lease in 2009. The space, approximately 170,000 square feet, will be put up for lease after SunTrust moves to a 50,000-square-foot building in Memphis Ridgeway Center.
Reaching out
The bank regularly celebrates Disability Mentoring Day, created by The American Association of People with Disabilities. During the event, job shadowing and other activities, such as presentations about the company, take place during the day at 21 of the banks branches. SunTrust spokeswoman Mimi Breeden said that the bank has increased the number of site locations from the previous year which is indicative of the success weve experienced as a partner in this program.
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Vault Guide to the Top 50 Banking Employers 2009 Edition SunTrust Banks, Inc.
GETTING HIRED
Southeastern priorities
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SunTrust attracts some of the brighter students from the top schools in the region, including big-name public schools and some smaller private institutions. Recruiting is heaviest in the Southeast, targeting schools like Duke, University of North Carolina, Georgia Tech, Emory and Morehouse as well as University of Georgia, Clemson and Wake Forest. If you have good grades from a decent college, have good interpersonal skills and know some people around Atlanta you should be able to land a job, says an Atlanta banker. Employees state that the SunTrust interviewing process can be very selective. If there are not candidates that meet their requirements, they dont feel obligated to hire a certain number of people, an insider says. Selectivity also depends on what division you will be working in, as different groups have different standards and headcount needs. The selection process is thorough and there are often many applicants to meet and interview, so the firm tries to get a clear understanding of what we can expect from them. According to one source, SunTrust isnt just looking for education and experienceWe also pay close attention to how they interact with current employees. Still, says a current insider, I had several interviews with other financial institutions and although SunTrust provided a challenging interview, it wasnt as long of a process as others.
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CAREER LIBRARY
421
Vault Guide to the Top 50 Banking Employers 2009 Edition SunTrust Banks, Inc.
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Vault Guide to the Top 50 Banking Employers 2009 Edition SunTrust Banks, Inc.
that in general SunTrust seems to be moving back toward more formal dress codes, though casual Fridays can still be found in some offices. The offices themselves are nothing special, and one insider explains that SunTrust has cut back heavily on facilities in the past years. As a result, space has been reduced and some workers moved from offices to cubicles. They are beginning to pack us in like sardines, an analyst says, and another associate jokes, I think the art work came from Big Lots. In Atlanta, however, break rooms are functional, and conference rooms are very comfortable and have great views of the city. But poor technology gets the thumbs down. They actually took away a newer BlackBerry I had and gave me, and everyone else, a very dated version, gripes a recent hire.
Top notch
Managers at SunTrust win rave reviews for their attitudes and accessibility. I have direct access to directors and managing directors on a daily basis that I wouldnt get at bigger shops, a source says. Managers give a great deal of responsibility to subordinates and treat them very fairly. The head of the group almost always has his door open and will make time to talk to analysts, a recent hire adds. Others describe their bosses as approachable, knowledgeable, very friendly, and willing to act as mentors. They realize that youre the next wave in the company, so they want to get you up to speed and able to do your job effectively. In fact, stellar superiors make up for some employees dissatisfaction with their compensation and other issues. Management in my group is probably the sole reason I still work here, a woman in Atlanta says. They truly make an effort to let you advance at your pace, rewarding hard work and success with praise and promotions. They are knowledgeable in their field, cognizant of work/life balance, and generally pleasant to work with. While I dont always feel that the bank as a whole values me as an employee, I know my managers do.
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CAREER LIBRARY
423
KEY COMPETITORS
Bernard Madoff Investment Securities LLC Citadel Goldman Sachs Interactive Brokers Group LLC
UPPER
Good training
DOWNER
Not a household name in finance world
THE STATS
Employer Type: Private Company Head of Investment Banking: James J. Ramp Global Head of Strategic Relationships: Eric Noll No. of Employees: 1,500+ No. of Offices: 15 offices (North America, Asia Pacific & Europe)
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EMPLOYMENT CONTACT
www.sig.com/careers
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
424
CAREER LIBRARY
Vault Guide to the Top 50 Banking Employers 2009 Edition Susquehanna International Group, LLP (SIG)
THE SCOOP
Sticking around
Susquehanna International Group prides itself on its low turnover rate, lack of pigeonholed job descriptions and absence of corporate constraints, but its recognized for even more. Best known for its impressive trading capabilities, the Susquehanna International Group of companies (SIG) offers investment banking, research, institutional brokerage and market making services to institutional and corporate clients. The firm is a member of numerous local, national and international stock exchanges, including the New York Stock Exchange, Nasdaq and all of the U.S. option exchanges. SIG is headquartered outside of Philadelphia and, in addition to its domestic presence, has offices in Europe, Asia and Australia. A December 2007 article in the Philadelphia Inquirer focused on the diversity of businesses in the region and noted that SIG is one of the areas highly specialized firms.
New venture
SIG officially launched a new private equity/venture capital group in March of 2006 focusing on investing in financial technology, software, business services and specialty finance opportunities. SIGs associate director Todd Simkin said that the new group deals with trading, brokerage and investment banking. This initiative is synergistic to our other business and provides a significant new engine of growth for our firm, said Simkin. The group, known as Susquehanna Growth Equity, is headed up by Amir Goldman and based out of Bala Cynwyd, Pa. Additionally, SIGs private equity platform includes the following affiliates: Heights Capital Management, Susquehanna China Venture Capital & Private Equity, and Susquehanna Private Equity Investments, LLC (SPEI).
Investing in cereal
In February 2007, SIGs division of Strategic Investments announced its acquisition of U.S. Mills and all of its assets. U.S. Mills is a developer of cereal and snack foods; its brands include Uncle Sam, Farina and New Morning. As for SIGs thinking in the selection of U.S. Mills, executive Scott Feldman said in a statement: We have searched diligently for a good company in the
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CAREER LIBRARY
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Vault Guide to the Top 50 Banking Employers 2009 Edition Susquehanna International Group, LLP (SIG)
natural/organic/whole grain space and think we have found a great company in U. S. Mills. The brand names are well known and gaining in popularity and the management team is among the most experienced in the natural food industry.
Entrepreneur in residence
Susquehanna Growth Equity, SIGs private equity arm, was pleased to announce in September 2007 that David Tamburri had agreed to join its team under the title Entrepreneur in Residence. Tamburris main duties will be to analyze investment opportunities and work with existing clients, mainly in the financial and healthcare technology industries. One look at Tamburris resume is all it takes to see why SGE was eager to have him onboard. A graduate of Harvard Business School and the U.S. Military Academy, he was the president and COO of Onward Healthcare. He also served as an executive vice president at Pinnacor, an information applications provider, and spent nearly a decade lecturing at Columbia University.
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GETTING HIRED
Get focused
No need to worry about not finding a position that will match your skillsSIG makes sure to list several areas of focus within the careers section of their web site. The firm offers career paths in three primary areastrading, technology and researchas well as in administration, accounting, and human resources and recruiting. Assistant traders start off their tenure with SIG through the formal trader training program, which is widely recognized for its comprehensive curriculum. The training begins with a two-week orientation during which students attend classes in options theory, risk management, behavioral economics, decision science and game theory. Following this initial phase, trainees take after-work sessions while gaining practical experience for approximately a year to 18 months. After this apprenticeship, trainees are invited to a final 10-week course that combines theory with application.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Susquehanna International Group, LLP (SIG)
The focus on education isnt limited to initial training at SIG. According to the firm, Education is of paramount importance at SIG. Indeed, the company has an entire department devoted to education, staffed with experienced senior traders who devote their full attention to educating and training. Susquehanna also invites top academics to conduct seminars on topics such as derivative valuation, probability and game theory. Employees can supplement classroom training with out-of-class studying in the library or online interactive instruction. Furthermore, staff members are encouraged to take advantage of the experience of their peers through the firms mentoring program.
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Summer work
Interested candidates can also try their luck as interns. In the summer of 2007, SIG rolled out a new, more formalized program, hiring 60 interns across many business and technology areas. The 11-week program combines practical work experience, workshops, classroom training and social events, providing students entering their final year (or term) a thorough introduction to the organization. As part of the new program, SIG introduced a full spring semester on-campus campaign focused on interviewing for the summer spots. SIG has a history of including co-ops as part of its recruiting strategy, and recently begun adding more schools to its roster. Many full-time hires began as co-ops, including the heads of some of the most high-profile desks and areas within the firm.
OUR SURVEYS
Mostly satisfied
The firms culture, for the most part, receives high marks from insiders. SIGs web site describes the firms culture as a flat corporate structure, absent of hierarchies. A recruiter in the firms Bala Cynwyd headquarters echoes this characterization,
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Vault Guide to the Top 50 Banking Employers 2009 Edition Susquehanna International Group, LLP (SIG)
saying the firm has as few levels of management as are necessary to run a business efficiently. As a consequence, the source finds the structure at SIG fosters open communication and accessibility. In addition, says the contact, Merit-based advancement and an entrepreneurial spirit allow for creativity and success in terms of responsibility assumed at a very young age. SIG also claims to maintain a work environment that allows employees to excel without being bogged down by red tape, job descriptions or other corporate constraints. This unrestrained atmosphere has attracted some of the smartest, most competitive and creative people to our doors. And according to the firm, those people stay at SIG, as turnover is very low. But there are views from both sidesone insider admits the company is not the place it was in the high-flying days of the tech boom. Dress at the firm is casual and one source who went in for an interview remembers, The environment was so laid-back and casual, I had no idea the interviewer was a managing director until he left the room and someone told me. He was wearing jeans and a plaid shirt. In addition, human resources reports that there is no emphasis on face time so while the hours vary in terms of product, desk or area, employees only need to be in the office to be productive.
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TD Securities
31 West 52nd Street New York, NY 10019 Phone: (212) 827-7000 Fax: (212) 827-7248 TD Bank Tower 66 Wellington Street W Toronto, Ontario M5K 1A2 Canada Phone: (416) 982-6160 Fax: (416) 307-0338 www.tdsecurities.com
KEY COMPETITORS
CIBC World Markets Citi RBC Capital Markets
RANKING RECAP
Quality of Life #2 Hours #8 Offices #18 Treatment by Managers #19 Overall Satisfaction #19 Best Employers to Work For #19 Selectivity #19 Training #20 Compensation Diversity #8 Diversity with Respect to GLBT #9 Diversity with Respect to Women #11 Overall Diversity #14 Diversity with Respect to Minorities
THE STATS
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Employer Type: Subsidiary of TD Bank Financial Group Chairman, CEO & President: Robert E. Dorrance Revenue: $14.28 billion (FYE 10/07) Net Income: $4.17 billion No. of Employees: 2,700+ No. of Offices: 15
UPPERS
No hierarchy Lean organizationopportunity to contribute immediately
DOWNERS
Relatively unknown to people outside of the Street Not aggressive enough
Lindsay M. Calautti Recruitment Manager, USA TD Securities (USA) LLC 31 West 52nd Street New York, NY 10019 Phone: (212) 827-7000 Email: recruiter@tdsecurities.com www.tdsecurities.com/careers
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THE SCOOP
Providing it all
As part of TD Banks wholesale banking segment, TD Securities provides investment banking products and services to corporate and government clients throughout Canada, the U.S., Europe, Asia and Australia. Services include bond and equity analysis, mergers and acquisitions support, risk management, capital-raising and foreign exchange. The firms investment bankers deliver these offerings out of particular industry groups, including communications and media, diversified industries, financial institutions, oil and gas, technology, and utilities and power. The institutional equities group (known as TD Newcrest) delivers equity research in addition to underwriting, sales and trading, and distribution. The firm also has a debt capital markets team that trades and sells various fixed income products and derivatives. TD Capital is TD Securities private equity arm, investing mezzanine and equity capital primarily in middle market companies. The banks foreign exchange group is a major player in the Canadian derivatives market.
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D-listed
In April 2007, shareholders voted to take TD Banknorth private. The event made TD Banknorth a wholly owned subsidiary of TD Bank Financial Group. Banknorth was delisted from the NYSE on April 20, 2007. This is the start of a new chapter in TD Banknorths history and is great news for both our customers and employees, Bharat B. Masrani, president and chief executive officer of TD Banknorth, said in a company statement. We will continue our efforts to provide a truly superior customer experience to our expanding customer base throughout the northeastern United States.
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Columbia. Headquartered in Cherry Hill, N.J, Commerce primarily provided commercial banking services to small and midsized companies. In 2007, Commerce reported assets of $50 billion, but said it aims to increase its assets to $104 billion by the year 2011. Besides its popular retail banking products, Commerce offered investment management, brokerage, private banking, commercial banking and wealth management. Its Commerce Capital Markets unit provided fixed income, asset management, brokerage and wealth management services, particularly to clients in the health care and education sectors. In May 2007, Commerce launched its virtual private bank, an award-winning online wealth management solution provided by Commerce subsidiary eMoney Advisor. More acquisitions seem unlikely for TD right now. Clark told Canadas Globe and Mail that he likely wouldnt be interested in more acquisitions in America because the potential targets would take so much money to fix. TD also owns TD Banknorth, which has about 600 branches in the United States and became a wholly owned subsidiary of TD Bank Financial Group when it went private in April 2007. This new acquisition makes TD the seventh-largest banker in the United States.
Easing fears
Not wanting to alarm investors, TD Financial issued a statement in January 2008 to confirm that its finances had not been negatively impacted by the U.S. sub-prime mortgage market. The statement added that the companys latest acquisition, Commerce Bancorp, had not been exposed to the mortgage crisis, save for slight exposure in its loan portfolio. Earlier, in December 2007, TD told investors in its annual Investment Outlook that things were on the up and up. The biggest question facing investors at the moment is whether the five-year-old global bull market will see a sixth year, or whether the subprime lending crisis will tip the U.S. into recession and cause a bear market, Bob Gorman, Chief Portfolio Strategist, TD Waterhouse, said in the report. But there has been so much coverage of the subprime crisis that we believe its already embedded in current market prices. Therefore, other strong fundamentals, when combined with the stimulative effect on markets of the presidential cycle, will outweigh the subprime impact and keep the economy out of recession territory. The report also suggested that TD believes that fixed income will increase its earnings in 2008, and that Canadian markets while weaker than the U.S. marketwill continue to produce single-digit returns.
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Good year
TD had a wonderful 2007, thanks to growth in the U.S. and Canadas banking industries. TDs stock was up 3 percent, outperforming all of Canadas large banks. Net income for TDs fourth quarter rose to $1.09 billion Canadian dollars, up from $757 million Canadian dollars one year ago. TDs personal and commercial banking business in Canada grew by 14 percent from the previous year; that same business on the U.S. side skyrocketedearnings grew by 97 percent. The firm also had a great year in M&A, as it was ranked No. 3 in announced Canadian deal volume by Thomson Financial (now Thomson Reuters). TD leaped five places from its No. 8 ranking in 2006, thanks to advising on 39 deals worth a total of $107.2 billion.
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Non-Core Dollar Bonds. In August 2007, market research firm Synovate said that TD ranked No. 1 in customer service among the top five Canadian banks for the third consecutive year. Later, in October, Macleans magazine selected TD Bank as one of Canadas Top 100 Employers. That same month, the Financial Post lauded TD Bank, calling it one of the Ten Best Companies to Work For in Canada. Being chosen as one of the Top Ten Companies to Work For is something were very proud of because it speaks to our constant focus on making TD a great place for our employees, Teri Currie, executive vice president of human resources, said in a statement. Additionally, Euromoney named TD the Best Equity House in Canada in 2007.
GETTING HIRED
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Limited availability
TD Securities has a very selective screening process, hiring on a smaller scale from target schools. The firm has a clear idea of what they are looking for, and due to its small size, TD does not extend as many offers as do some bulge bracket banks. There are not many open positions, so the firm hires on need basis only, making it extremely competitive. The firm run a very lean organization so it does not recruit widely. This can make it a bit more difficult for nontarget school graduates. During the interviewing process, fit matters most. A contact says, It is assumed that you are qualified if you are being interviewed at all. TDs limited recruiting schools include top Canadian schools and U.S. schools in the northeast. Examples in the U.S. include NYU, Columbia, George Washington and Georgetown. In Canada, the firm looks to University of Toronto, Queens, McGill and University of Western Ontario. In addition to top undergraduate schools and MBA programs, the firm also gets candidates from top competitors.
No surprises
TDs is a tough interview process involving multiple interviews with challenging, dynamic questions. Most candidates have several rounds of interviews. The first is normally on-campus with a managing director. These interviews are pretty much behavioral, with questions such as, Why investment banking? Candidates may also be told, Walk me through your resume. The second interview is an on-site Super Day during which candidates have between five and seven interviews. During the second round, candidates meet with a mix of HR and bankers, ranging in seniority from analyst to managing director. Expect the usual mix of quantitative and qualitative questioning, although interviews tend to be less about specific qualifications and more about whether you fit into the organization. Technical questions typically focus on balance sheet, income statement, cash flow, options and debt. There are no real surprises during the interview process, and everyone is very professional.
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name basis. At TD, communication runs freely between groups due to the firms small size. Some complain that TD Securities is more on growing its branch network than its investment banking business. And at times, reporting lines are not always appropriate or clear. Overall, the firm employs professional and hardworking people who are happy that TD does not foster a pressure-cooker type work environment.
Mixed on compensation
TD insiders give average marks to their compensation. One contact says, Better comp would make this an ideal job. But others feel the firm provides an ideal mix between compensation and work. TD offers a generous 401(k) match and contribution, and equity awards are given to officers as a mix of cash comp at bonus time. Theres also corporate rate gym memberships to high-end gyms such as Sports Club/LA and Equinox. And employees get a dinner allowance after 7 p.m. and taxi vouchers after 9 p.m.
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No handholding
TDs mostly informal approach to training requires self initiation. The firm does offer a six-week training program for all new employees, which includes accounting, credit and financial modeling. Insiders say this training is up to par with the bulge bracket banks. Initial training weeks usually involve small classes of only 10 people and normally involve a visit to TDs corporate headquarters in Toronto. After the first six weeks, most skills are acquired on the job. And the formal training that is offered is not very job specific. The informal training on the job is more relevant. But keep in mind, you need to seek out the right mentors and be proactive in asking questions in order to train and learn. At TD Securities, no ones holding your hands.
No tie, no problem
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TD Securities official dress policy is smart business casual, but the look varies from person to person. Some people prefer to wear a jacket and tie, but others do not. No matter, because both are acceptable. Investment bankers usually wear suits, although some never wear ties except for client interaction. A contact says, You can get away with wearing no tie, except of course when dealing with a client. Some departments have casual Fridays, and in the summer, its a bit more casual. Overall, its very relaxed, with a deal of variety in what people wear. This is not a strict dress to the nines kind of place. The firms New York office is nice and open and was recently renovated. This great Midtown location has big cubes and is very technologically advanced. A contact says, The analyst cubicles are big. I have the same size cube as my VP. Although most describe the office as spacious, some senior bankers say there is not enough space for VPs. The firms new trading floor has comfy seats, although for some, the desks are slightly too high for the chairs.
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ThinkPanmure LLC
600 Montgomery Street San Francisco, CA 94111-2702 Phone: (415) 249-2900 www.thinkpanmure.com
KEY COMPETITORS
Burrill & Company Canaccord Adams FBR Capital Markets
EMPLOYMENT CONTACT
www.thinkpanmure.com/about/careers.html
THE STATS
Employer Type: Subsidiary of Panmure Gordon & Co. Chairman & CEO: Michael Moe No. of Employees: 180 No. of Offices: 6
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition ThinkPanmure LLC
THE SCOOP
Flying high-net-worth
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Extending its mission statement to focus on growth sectors in the last couple years ThinkPanmure has branched out its business to include one of the fastest growing and most profitable areas of business available today: managing the finances of high-networth clients. The wealth management portion of ThinkPanmure called ThinkWealth caters exclusively to high-net-worth families, partnerships and nonprofit organizations. ThinkWealth was launched in 2004 and covers a wide range of services, including asset allocation, portfolio construction, investment advisory services, consolidated reporting, equity and fixed income trading, cash management, and hedging and monetization of concentrated equity positions. One special quality that ThinkPanmure offers the high-net-worth clients in is a peer-to-peer networking forum called Visible Path. Visible Path is a relationship capital management platform that helps ThinkPanmures partners, staff, close advisors and VIP clients to network with each other under the veil of virtual privacy.
Transatlantic merger
ThinkEquity went from being a boutique startup to an international multiservice operation when it was purchased by Panmure Gordon Company in March 2007. Panmure was attracted to ThinkEquitys meteoric growth over the short six years it had been in business, including its revenue jump from $12.2 million in 2002 to $64 million in 2006. The buying price for the U.S. firm was $62.3 million, plus $27 million for the assumption and repayment of debt and liabilities and the recapitalization of the company. Panmure kept founder Michael Moe and his co-founder Deborah Quazzo onboard in their current job capacities as well as giving them the distinction of becoming Panmure board members. The merger is a powerful partnering for ThinkEquity. Panmure Gordon was established in 1876 and is one of the oldest stockbrokers in London. As of February 2007, it had a capitalization of 116 million ($229 million) and was the stockbroker to approximately 85 companies. In the U.S., the company will be known as ThinkEquity, a Panmure Gordon company, and will assume the name of Panmure Gordon in the U.K. and Europe.
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Vault Guide to the Top 50 Banking Employers 2009 Edition ThinkPanmure LLC
GETTING HIRED
Think it over
Thinkpanmure.com is your portal to employment with the firm. There, you can go to the careers section and peruse the search jobs function. You can also look up jobs by keyword and build your profile to be saved for later use on the site. The firm also features certain current openings by highlighting them under its hot jobs section on the search page. Its preferred that positions such as a research associate already have an MBA in their possessionnot to mention the ability to be a self-starter who can initiate and complete his or her own projects. Those who can cultivate extreme attention to detail and penchant for perfection are probably going to be looked on favorably as well. But if no posted positions meet your current needs, ThinkPanmure encourages you to take matters into your own hands by submitting your resume and cover letter to them directly at thinkjobs@thinkpanmure.com.
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437
KEY COMPETITORS
American Express Bank of America Citi ING Wachovia Corporation Wells Fargo
THE STATS
Employer Type: Public Company Ticker Symbol: UB (NYSE) President & CEO: Masaaki Tanakak Revenue: $2.6 billion (FYE 12/07) Net Income: $608.09 million No. of Employees: 9,820 No. of Offices: 336
RANKING RECAP
Quality of Life #5 Hours #5 Training #7 Offices #11 Best Employers to Work For #16 Overall Satisfaction #17 Compensation #19 Treatment by Managers Diversity #2 Diversity with Respect to Women #2 Diversity with Respect to Minorities #5 Overall Diversity #6 Diversity with Respect to GLBT
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UPPERS
Great hours Very good upward mobility Industry leader in diversity
DOWNERS
Pay is low in entry-level positions Very conservative corporate culture High turnover
unionbank.com/careers
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Vault Guide to the Top 50 Banking Employers 2009 Edition Union Bank of California
THE SCOOP
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Vault Guide to the Top 50 Banking Employers 2009 Edition Union Bank of California
California predecessor banks Mitsubishi Bank and the Bank of California. At the same time, Mitsubishis deputy president, Norimichi Kanari, was named chairman of Union Bank of California. Kanari had been Union Bank of Californias president and CEO from 2000 to 2005.
Bad business
A questionable relationship with a Mexican currency house, Ribadeo Casa de Cambio, led to a huge fine for Union Bank of California in 2007. In October, Forbes reported that the president of Ribadeo was shot to death, which was just one event in a series of others that led Mexican authorities to shut down the exchange. U.S. officials then reported that drug traffickers used Ribadeo to launder millions of dollars$300 million, to be exactthrough U.S. banks. What does this have to do with Union Bank of California? Forbes reported that Ribadeo had an account at Union Bank of California. Drug traffickers testified that they used the Ribadeo account at Union Bank to transfer drug money between Mexico, the United States and Colombia. Union Bank reportedly closed its Ribadeo account sometime in 2006, but feds estimated that at least $22 million of laundered money had been through the Union account. That fall, Union Bank settled with the U.S. Department of Justice, agreeing to forfeit $21.6 million to the government in order to settle claims. In addition, Union Bank had to pay a $10 million fine because it violated the Bank Secrecy Act (which insists that banks implement an effective anti-money laundering program), bringing the banks total financial burden to $31.6 million. According to the firm, these events have led to significant compliance and regulatory improvements throughout the bank, including procedure, software and training changes.
Bright spot
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In brighter news, Union Bank received a whopping four awards in September 2007 from Greenwich Associates, a Connecticut consulting and research firm that focuses on the financial services industry. Two of the Excellence in Business Banking Awards were for overall customer satisfaction, and the other two were due to the banks excellent cash management services. Both awards reflected the business at a regional and national level. Greenwich gives a biennial survey to key decision makers at more than 20,000 businesses with sales of $1 to $10 million. Results determine the winners of the Excellence in Business Banking Awards. Earlier in 2007, market researcher Phoenix-Hecht also lauded Union Bank for its customer service, giving it an A+ rating.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Union Bank of California
million it booked in the first quarter 2007. Revenue, though, came in $713 million, up 19 percent compared with the second quarter 2007. In addition, Net interest income was $513 million, up 7.7 percent from the same period a year earlier primarily due to strong loan growth, lower rates paid on interest bearing liabilities.
GETTING HIRED
Group effort
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The hiring process at Union Bank typically starts out with an online application, followed by a screening call with the recruiter. Those who make it through the screen participate in several interviews. The interactive nature of these interviews provides an opportunity to demonstrate skills not listed on a resume. Candidates may also face one-on-one interviews with their hiring manager. The process can be tough, and typically, the last two are the hardest. Questions can range from why you want the position to what can you contribute to the institution. Candidates may also be asked to provide examples of past customer service or sale experience. A contact recalls, They asked me questions about my ability to sell, and my potential to multitask and to participate in a fast-paced professional environment. Candidates should be prepared to sell themselves to get the job.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Union Bank of California
business-orientated, people are fun and lively, with a family-orientated attitude. A contact says, As large as the corporation is, relationships and communication are as open as a small, mom-and-pop company. It is important to remain disciplined and professional, however. You can have fun, but you also have to produce and show the numbers. Fortunately, when you do something great, the whole bank knows it and you get notice. Indeed, Union Banks flat management structure provides endless opportunities to move upwards. Some say there is potential for self-promoters to succeed over hard workers, but overall, Union Bank is a firm based on integrity, honesty and goodwill to clients and employees. Insiders dont seem to mind the firms very conservative corporate culture, which emphasizes pristine personal appearance and professionalism. The bank is a diverse company that takes care of its employees. For that reason, people work at Union Bank for more than just a paycheck.
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Supportive nudging
Union Bank managers are very approachable and understanding. They recognize hard work and reward accordingly. The firms leaders emphasize and demonstrate good communication, and are good at transforming visions into results. On the whole, managers are extremely fair, professional, and treat employees with respect and appreciation. Supervisors can be demanding when it comes to deadlines and being able to grasp concepts, but they are supportive in every step. In addition to direct supervisors, the firms upper management is highly visible within the organization. Access to top dogs is offered through company literature and monthly meetings. Although some complain of staffing shortages that prevent people from taking time out for training, most insiders say Union Banks training is exceptional. Many classes are offered to benefit the employee personally, not just for business. And the firms retail banking training program is one of the best in the industry. A participant in that program says, I have been very humbled and astonished towards how the training program is going. Union Bank provides great teachers and great materials to learn the concepts.
Tip-top shape
Inspired by its Japanese parent, the dress code for trainees in the retail banking training program is formal always. Trainees must wear a suit and tie at least four days a week. Business casual is acceptable only on Fridays and weekends. A contact says, I always have to wear a suit when in the office or training, or when going to see a client outside the branch.
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Vault Guide to the Top 50 Banking Employers 2009 Edition Union Bank of California
Most offices at Union Bank are remodeled, and they are well kept and clean. The Los Angeles office offers an adequate amount of workspace with an acceptable comfort level. The location provides all the necessary amenities. Things in Laguna Niguel, Calif., are clean and welcoming, and the San Jose outpost maintains a friendly environment. Sacramento, meanwhile, could use some improvements.
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CAREER LIBRARY
443
KEY COMPETITORS
Cowen and Company Stifel Financial Corp. William Blair & Company
UPPER
Open communication with management
THE STATS
Employer Type: Public Company Ticker Symbol: WBS (NYSE) Chairman & CEO: James Jim C. Smith Revenue: $508.19 million (FYE 12/07) Net Income: $110.7 million No. of Employees: 3,000+ No. of Offices: 177 (Worldwide)
DOWNER
Office space could stand some sprucing up
EMPLOYMENT CONTACT
Follow the work for us link at websteronline.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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Vault Guide to the Top 50 Banking Employers 2009 Edition Webster Financial Corporation
THE SCOOP
Yankee banking
With $17.2 billion in assets as of March 2008, Webster Financial Corporation is the holding company for Connecticut-based Webster Bank, the largest independent bank headquartered in New England and one of the 45-largest in the U.S. Its four lines of business are retail banking, commercial banking, consumer finance, and wealth and investment services. Webster was founded in 1935 by Harold Webster Smith, then 24 years old. Smith borrowed from his relatives to open First Federal Savings of Waterbury, a lending institution dedicated to providing home loans at low rates to Connecticut citizens. It soon focused on expanding its commercial business, and in the process grew beyond Connecticut. Today, the Webster footprint extends to the suburbs of Boston, through southern Massachusetts and Rhode Island and into New York. The bank offered its first shares to the public in 1986. First Federal was renamed Webster Bank in honor of its founder in 1995; 10 years later, in March 2005, Webster acquired the Wisconsin-based State Bank of Howards Grove, which it now operates under the name HSA Bank. In just two years, HSA Bank has become the No. 1 bank custodian of health savings accounts in the United States. Then in October 2006, Webster closed its stock-for-stock acquisition of Connecticut savings bank NewMil Bancorp, in a deal valued at $172.5 million. In 2006, Websters CEO James Jim Smith (son of the banks founder) vowed to complete our transformation to a commercial bank balance sheet and earnings stream, which he did by repositioning the banks mortgage-backed securities portfolio and reducing borrowings significantly. In the beginning of 2007, as part of an effort to refocus the bank on fee-based businesses like insurance and investment services, Smith ordered a companywide strategic review. The concept is pretty simple, actually, Smith wrote in his 2006 annual letter to shareholders. We intend to concentrate on the businesses were best at. He added that he plans to target Rhode Island and Massachusetts operations as key growth areas in coming years, and that a presence in Boston proper is not far offas New Englands bank, Boston is in our future.
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445
Vault Guide to the Top 50 Banking Employers 2009 Edition Webster Financial Corporation
restructuring efforts CEO Smith launched at the close of 2006; like many American banks in the weak mortgage market, Webster vowed to reduce its reliance on residential mortgage loans and focus on commercial or nonresidential consumer loans. To that end, in April 2007, Webster closed its Peoples Mortgage unit, taking a $2.3 million pre-tax charge and selling the business to Baltimore-based First Mariner Bank. That loss, along with other restructuring and realignment costs, cut deeply into the bottom line, but Webster took the position that the moves would pay off down the road, and CEO Smith continued with his strategic review, bringing a team of consultants in for advice. There was some good news soon after the quarterly earnings announcement, however. In May 2007, Webster Banks expertise in small business banking earned it the U.S. Small Business Administrations (SBA) 2007 Excellence in Lending Award. Thanks to Websters 2006 acquisition of NewMil Bancorp, its portfolio of SBA loans surpassed $100 million and currently makes up more than 10 percent of the companys business and professional banking loan portfolio. But even before NewMils assets were brought onboard, Webster had consistently ranked as the No. 1 SBA lender in Connecticut.
Closing day
In December 2007, Webster decided to shutter its wholesale mortgage business entirely. The Hartford Courant reported that the unit had caused the bank to increase by fivefold the amount of money it set aside for bad loans during the summer. (The reorganization was completed in the first quarter of 2008.) In a press release, Webster noted that the decision would result in job cuts, but didnt say how many employees would be affectedonly noting that the layoffs would mostly center on its operations in Connecticut. Media outlets reported that the cuts affected about 100 people. In addition, 65 people were laid off earlier that fall when wholesale mortgage offices in Phoenix, Seattle and Chicago closed because we had a strategic review a year ago and we decided ... that we would focus on core franchise businesses, and we will favor direct businesses over indirect businesses, Smith told the Courant. Webster continues on with its retail mortgage lending business, which it expects to thrive in the coming year. The companys wholesale mortgage loans were issued through brokers or another third party; retail mortgages will allow the company to focus on direct lending.
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Year-end loss
Webster posted an $8.7 million loss for the fourth quarter of 2007. That number included $40 million, which the company had set aside to compensate for loss on home equity and residential construction loans made through its shuttered whole mortgage unit. The Courant reported that Webster set aside an additional $22 million, $14 million of which was linked to the companys former insurance unit. For the full year, net income came in at $96.7 million, a drop from $133.8 million it booked in 2006.
Helping at home
Webster Financial devotes most of its charitable activity to causes and organizations in its home state. In addition to providing major support to the Connecticut United Way, Webster has developed a mentoring program in conjunction with the Connecticut Mentoring partnership. Websters program began in 2002 with nine employees serving as mentors to kids in the Hartford and Bristol school systems. In 2006, the program included over 70 mentors in 25 towns throughout the state. Following the spirit in which it was founded, the bank also works closely with New England low-income housing organizations to provide funding, affordable mortgages and education for first-time homeowners. But Websters biggest community pledge is to the Palace Theater in Waterbury. CEO Smith spearheaded the effort to create a $5 million endowment to keep the performing arts center alive, chipping in $1 million from Webster and the Harold Webster Smith Foundation.
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Celebrating a milestone
In January 2008, Websters HSA Bank became the first health savings account administrator in the U.S. to exceed $500 million in HSA deposits. Reaching a half billion dollars in overall HSA deposits is not only a remarkable milestone for HSA Bank, but for the HSA industry as a whole, Kirk Hoewisch, president of HSA Bank, said in a press release. HSA has a presence in every state. In October 2007, it even launched a Spanish-language component on its web site in order to reach more customers.
Mixed quarter
For the first quarter of 2008, Webster brought in net income of $24.4 million, down from the $35 million it recorded in the first quarter of 2007. Meanwhile, the firms total revenue came in at $172.7 million, a slight decrease from the $175.4 million it brought in during the first quarter of 2007. Steadily worsening credit conditions were mostly to blame for Websters declines, not to mention a $2.1 million loss the firm took for discontinued operations when it sold its insurance arm to USI Holdings Corp. for an undisclosed amount in February 2008. As part of the deal, Webster Financial retained Webster Risk Services, its workers compensation unit.
GETTING HIRED
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Go to the top
For college students, Webster offers both full-time positions and internships, with internships usually leading to regular employment for top performers. Although the company considers applicants from all fields of study, it typically recruits students in one of four majors: finance/accounting, marketing, computer science and liberal arts. For each concentration, the firm provides a list of departments that match up with the particular skill set and knowledge base. For example, according to Webster, a good fit for a marketing major might be product management, retail banking or, of course, marketing. The company participates in campus recruiting through career fairs, open houses and online job postings, and also provides a simple application page through the career site. The firms interview process usually starts with an on-campus interview, and second-round interviews are granted to those individuals who appear to be a good fit for the culture and needs of the bank. On-site interviews are the final step in the process, and often include contact with members of Websters leadership. And expect several rounds of interviews, some of which might take place over the phone. By the time one contact was extended an offer, he had spoken with a hiring manager, treasurer, HR manager and team member.
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All clear
In the realm of Webster culture, theres fairly open communication with management and its not too hierarchical. One insider enthuses that the work is pretty intellectually stimulating and keeps me busy. Others laud the employee stock purchase plan (under which employees receive a 15 percent discounted rate), a 5 percent match on 401(k) and a strong health savings account medical plan. And there arent too many complaints when it comes to pay, either. I get compensated relatively well. Hours get positive feedback from employees, too. Working 45 to 55 hours per week is the norm, and theres no billing pressureand even though one insider admits several instances of working on weekends and late into the night, he adds that its not a common occurrence. Adds another, Right now I work about one weekend a month, but that is not the norm. Usually it is only a couple of times per year.
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WR Hambrecht + Co.
539 Bryant Street, Suite 100 San Francisco, CA 94107 Phone: (415) 551-8600 Fax: (415) 551-8686 www.wrhambrecht.com
UPPER
Entrepreneurial culture
EMPLOYMENT CONTACT
www.wrhambrecht.com/about/employ/index.html
THE STATS
Employer Type: Private Company Chairman & CEO: William R. Hambrecht No. of Employees: 125 No. of Offices: 4
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM
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THE SCOOP
In September 2006, Hambrecht named Gordon Rusty Johnson as the new head of the firms investment banking group. Johnson, who joined the firm in 2002, was previously the head of the investment banking health care sector group. Clay Corbus, then co-CEO of the firm, noted that Johnsons appointment was part of an overall effort to increase the investment banking groups business. Meanwhile, former investment banking head Brian Bristol was appointed head of Hambrechts capital markets division. Bristol came to the firm in 2004, following stints as head of technology banking at Solomon Brothers and head of investment banking at SoundView Technology Group.
Clean getaway
Clean Energywhich completed its first IPO through Hambrechtdecided that it liked the firm so much, it would hire one of its top execs. Clay Corbus, recently co-CEO of Hambrecht, left the investment bank to become senior vice president of Clean Energy in September 2007.
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Done deals
Hambrechts M&A team had several successful transactions to celebrate in late 2006 and throughout 2007. These included advising Netonomy on its $19 million acquisition by Comverse; advising Master Replicas on its merger with Corgi International and Cards; advising DesktopStandard Corp. on its acquisition by Microsoft; and advising Bristol Technology on its acquisition by Hewlett-Packard. In April 2007, Hambrecht took a break from technology to do a tastier transaction, advising Oregon-based Harry & David (the seasonal fruit basket guys) on the $49 million sale of their Jackson & Perkins fresh flowers subsidiary to a group of private investors. Hambrecht also managed several prominent IPOs in 2007, including those from Clean Energy, Interactive Brokers Group and Net Suite.
Touchdown!
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Theres more to Chairman and CEO Bill Hambrecht than investment banking. Hes also a savvy businessman whose latest project has more to do with football fields than Wall Street. Hambrecht and his partner, Google exec Tim Armstrong, have each pledged $2 million to start the United Football League, which will serve as a rival to the NFL. The pair has lined up the UFLs first owner, Mark Cuban of the NBAs Dallas Mavericks, and theyre still looking for seven more investors, Portfolio has reported. If all goes well, Hambrecht estimates that the newly formed teams will play their first preseason games in August 2008. There are quite a few good-sized non-NFL cities that can support a pro team, Hambrecht told The New York Times in June 2007, adding that he plans to add franchises in Los Angeles, Las Vegas and Mexico City. According to the Times, each owner will put up $30 million to own half the team, and the league will take ownership of the other half. In time, fans will become shareholders, as the league plans to sell shares to the public. More information can be found at www.ufl2008.com. The well-rounded Hambrecht also made headlines in early 2008 when it was announced that he was a partner in the C. Donatiello Winery near Healdsburg, California.
GETTING HIRED
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Moreover, one source says, We do not recruit on many campuses, explaining that any campus recruiting is centered on the alma maters of the firms current employees. Even so, one source cites most Ivies as well as Stanford and UC Berkeley as typical schools at which the firm recruits. Still, she does admit, We also receive and consider many incoming resumes from other schools. Other insiders say the firm goes to Penn, Harvard, Dartmouth, MIT, Georgetown and NYU, among others, to find employees. With respect to what the firm is looking for in a candidate, a junior banker explains that culture is the biggest obstacle for a candidate. You need to fit in and work well with the people.
According to an insider whos been with the firm for several years, the firms culture is very entrepreneurial and easygoing, as were focused on technology and based in San Francisco. He adds that while a lot is expected, face time isnt a requirement for success. Additionally, he stresses that people are given lots of responsibility quickly and more if they do well with it. The view from the rank and file is a little less optimistic. The culture is far more relaxed than at major banks, notes an analyst, but that is changing as the firm grows. The source adds, The firm is currently understaffed, especially at the junior level, which can make hours miserable at times. Another insider notes that the firms West Coast technology foundation allows for a less formal setting than bulge brackets given that everyone is more laid-back and easygoing. He adds that analysts get great exposure, and they participate in a lot of client meetings, get a lot of responsibility and have direct interaction with senior management. The consensus was that the hours and lifestyle are pretty desirable for an investment banking position, although one analyst notes that while she normally works until 7 p.m., on bad weeks, I consistently stay until 2 a.m.
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TOP
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APPENDIX
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