A new trend is overtaking Wall Street. Traders who excelled at the biggest banks are finding their way to hedge funds and investment firms that can afford to compensate them the way they want.
Nearly two dozen of the top-producing credit traders over the past 13 months have fled Wall Street's banks, Bloomberg reports. Increased regulation, tightened risk appetites and lower compensation packages are the culprits for this latest exodus. John Silvetz, for example, a trader who made $700 million for Deutsche Bank over five years, left to go to hedge fund BlueCrest Capital last September. The portion of his bonus paid in cash had decreased to 20% from almost 70%.
While bonuses have been capped at some firms, hedge funds are luring away traders with heady options, like $200,000 salaries and bonuses that could reach up to 12% of traders' profits. Hedge funds are willing to pay as much as half of bonuses in cash. It's no surprise then traders are willing to move on to smaller firms.
It's not just hedge funds that are profiting. Jefferies Group has brought on at least seven corporate debt traders.
Where there's a will, there's a way. And the way leads directly to hedge funds' doors, it seems.
Many former MF Global employees have been able to land safely at new jobs. Others, however, are facing the most brutal job market in years.
HSBC cut 3,500 staff since December 2011 and 14,000 since the first quarter of last year. It says it is still recruiting in "target areas."
Cuts in France (Financial News via Dow Jones)
Both BNP Paribas and Societe Generale said they would nearly halve employee bonuses this year from last year's payout. European austerity just took on a whole new meaning.
If it turns out an old college friend's father owns the company you want to work for, you need to work that connection. Even if you haven't spoken to the "friend" in six years.
Getting the Courage (BuzzFeed)
When asking your boss for a flexible work arrangement, make clear how you plan to get everything done that you need to do.
If it's been years since you've been promoted, you may want to ask what the deal is. Also start crafting an escape plan.
Buzz Around the Office
Call Me Maybe (YouTube)
The popular song is reimagined by Harvard's baseball team.
List of the Day: Landing the Job Quickly
In case you've been stressing what to wear and how your resume looks, don't forget the subtleties that help with every job pursuit.
1. Get recommended by somebody on the inside.
2. Show up ready to talk to several people.
3. Show why you're an excellent match for the position and the company.
(Source: Glassdoor.com)
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