To outsiders, Wall Street was a good place last year, and banks still made profits during the collapse of the epidemic. ButFor insiders, Wall Street is also aIdealThe place of departure。
Tech upstarts and investment firms offer unusually attractive rewards for experienced Wall Street professionals, including doubling their salaries. Coupled with the fact that the banking industry is not generous with bonuses in 2020, the temptation for job-hopping is even greater. With bonuses winding down, the number of Wall Street departures began to surge.
The latest two cases are the partners of Goldman Sachs Group Group, one of whom is the founding father of consumer banking. They gave up their senior position in Goldman Sachs Group and joined Walmart Inc.The newly established financial technology subsidiary. A day later, Goldman Sachs Group lost another member, this time to Tiger Global Management, a hedge fund.
Walmart Inc is certainly not Wall Street, but recruiters and industry veterans say it is self-evident to be able to use sufficient resources to build high-rise buildings and challenge existing participants in the industry. Not to mention the potential wealth once a new business is successful.
Noor Menai, CEO of CTBC Bank of America, said, "these people are very motivated, they are very smart and set goals for themselves." They would say,'I built this, and now I'm going to build something else'.
Financial technology is now a hot area. Venture capital firms inject large amounts of capital into start-ups. Companies that specialize in cryptocurrencies, payments, financial advice and commission-free transactions are flying.
Menai says financial services companies need experienced people, not investment bankers or management consultants in general, but people who understand the complex and boring details of consumer banks, such as consumer protection and loan risks.
One senior executive estimates that a department head who earns between $10 million and $15 million a year at a top bank can double or triple his salary if he runs such a company, with more room to rise over time.
Omer Ismail, a banker in Goldman Sachs Group's consumer division, and his deputy, David Stark, have just been promoted in recent months to implement Goldman Sachs Group's biggest strategic reforms in decades. Therefore, it is not that Ismail is going to leave Goldman Sachs Group, but there is an opportunity to have a significant impact on him.
Walmart Inc announced plans to establish a financial technology enterprise with venture capital firm Ribbit Capital in January. Although they have disclosed few details other than revealing that they will provide services to Walmart Inc's shoppers and partners, the resources and credibility of these companies are enough to cause a throb on Wall Street. When asked about the competitive environment, JPMorgan Chase & CoCEO Jamie Dimon mentioned Walmart Inc in a Bloomberg television interview on Monday.
It is an old phenomenon for Wall Street bankers to move to invest in companies, but the trend is likely to accelerate this year, as senior managers also plan to start a new stove or reinvest the proceeds of the bull market.
On Monday, Eric Lane, who has been co-head of Goldman Sachs Group's asset management department for less than six months, is expected to join Chase Coleman's Tiger Global as president and director of operations.
Despite unexpected profits last year, Wall Street banks are still under pressure to boost shareholder returns by driving down costs, especially as some companies make provisions for loan losses. Tight pay controls have helped big banks report better results, with share prices hitting record highs in recent weeks.