Irish banker-bashing is driving front office talent to London

By tarring all bankers with the same brush, Ireland is in danger of driving away some front office talent it can ill afford to lose.

Increasing numbers of corporate financiers, traders and capital markets professionals - working in divisions of banks that have remained profitable throughout the crisis - are looking for new job opportunities overseas. Primarily in London, but also in Asian and Middle Eastern financial centres, according to numerous sources.

Part of the motivation is financial. The angry public reaction to Bank of Ireland's decision to pay certain key staff retention bonuses and AIB capital market's rescinding of deferred compensation dating back to 2008, shows that neither the government nor regulator is likely to allow much in the way of variable compensation going forward.

But it's also down to the fact that more, and better, career opportunities are on offer overseas.

"Senior bankers are seeing their pay packets shrink, and new job opportunities dry up here, and so are seeking work in London where the career progression looks more appealing," says Greg O'Hanlon, partner at GHI Consultancy in Dublin. "Traders, capital markets professionals and corporate financiers, many of whom had little to do with the property bubble that has led to the banking crisis, are increasingly disenchanted with the way they're being treated in Ireland."

AIB capital markets, for instance, is rumoured to be losing staff at a fairly alarming rate, with a 20% turnover of traders in recent months, according to recruitment sources. AIB declined to comment on this, however.

Many are looking for new opportunities in London. Even if they attempted to transfer internally, something AIB says it doesn't encourage, they'd find their service more highly regarded. The bank has paid nearly €1m in retention payments to 30 capital markets staff in London and New York because of what it called "stronger job markets in those locations".

But the City jobs market is not as buoyant as it was at this point in 2010. Recruitment volumes are generally down on last year, and some large investment banks are currently in the midst of hiring freezes.

Nonetheless, Irish financial services professionals who have looked to gain employment in front office positions in London in recent months have found success, suggests Paul O'Reilly, senior consultant - banking and insurance at Robert Walters in Dublin.

"There's not a stigma attached to working for an Irish bank when candidates have looked for a new position in London, as you might expect," he says. "Most people are not moving for bigger bonuses or greater earning potential, but for enhanced job opportunities. Outside of the large domestic institutions, there are not many options for them locally."