The good times are back for Wall Street bankers.
Wall Street firms are aiming to bolster up their personnel balance sheets after the cuts caused by the banking crisis over the last two years.
Companies are now offering guaranteed payouts in order to grab the best staff they can get. According to Bloomberg Morgan Stanley, JP Morgan, Goldman Sachs, Citigroup, Nomura Holdings and Jefferies Group are amongst those that have been spending to get the best candidates.
The managing director of eFinancialCareers, Constance Melrose, said there had been a 75% increase in investment banking jobs over last year on its website.
It is reported that some firms are offering 30% to 40% more than the potential employees are expecting in order to lure them away from other banking institutions.
Morgan Stanley has added 400 to its number, Citigroup has added 15 with another 115 in the pipeline and Goldman Sachs has increased by 600.
Bloomberg reports that the most aggressive hirer has been Jefferies Group, which has seen its ranks swell by over 25% from 2,241 in 2008 to 2,821 today. Their chief executive, Richard Handler called this “a once-in-a-lifetime hiring opportunity”.
There is such a high demand for investment bankers that some recruiters are offering breathtaking packages as high as $8 million. These include non-performance related guaranteed bonuses.
Overall it looks like Wall Street is not only out to replace lost people, it will also increase its pay bill to new highs. This is despite Obama administration paymaster Kenneth Feinberg saying “It will be very tough for Wall Street to go back to the good old days.”
Well, it seems that the Wall Street bankers and hirers are not listening.