Debate: MDs Most at Risk of Cutbacks?
Are MDs most likely to get the chop if layoffs take hold? Brad Hintz, analyst at Sanford Bernstein, thinks so.
In a separate Guest Comment on eFC today, Hintz, who's also a former CFO of Lehman and treasurer of Morgan Stanley, says the average MD lasts only five years and is highly unlikely to retire due to natural causes. The short lifespan at the top is partly because MDs are expensive, but also because they need to be regularly culled to make way for thrusting young vice presidents and associates who are eager to fill their shoes.
If banking jobs are axed, therefore, Hintz thinks it could prove good news for junior bankers, who are likely to be promoted into newly vacant senior roles faster than they might otherwise have been.
Do you agree? Will top bankers feel the pain and do juniors stand to gain? Leave your comments below, and (if you're lucky) Brad will come in and respond.