Stuck in a second-tier institution?
Some banks are rumoured to have paid their junior corporate finance staff niggardly bonuses this year. But recruiters warn that moving out of a so-called 'second-tier' house to one with a little more 'oomph' can be hard going.
"If you're not well paid in a second-tier bank, you won't be in a very good position to switch to the bulge bracket," says Logan Naidu, a consultant at recruitment firm Cornell Partnership.
"Spending too much time at a low-ranking institution can hurt your CV," he goes on. "You'll certainly get an interview [with a bulge-bracket firm], but the more senior you get the more questions will be raised about whether you've had enough deal exposure."
Which banks are to be avoided? Those ranking low on the M&A league tables are a good place to start. According to Thomson Financial, the top three places for deals completed in the UK were occupied by Citigroup, Goldman Sachs and Deutsche Bank last year. BNP Paribas ranked 25th and ABN AMRO ranked 18th.
HSBC - which ranked 11th - is rumoured to have paid badly this year, with first-year associates outside its successful teams paid bonuses of just 75%, compared to what recruiters say is an industry average of between 100% and 225%. The bank declined to comment.
So what can you do if you're a junior banker looking to trade up? Recruiters say bulge-bracket banks may take you on, but will expect you to move down a level. It's therefore best to move as soon as possible. "Analyst and associate are the learning years," says Andrew Lynch at the Veni Group. "Once you're a VP or a director, you'll fall a lot further behind if you're working for a franchise where the deal flow is weak."
