Many of the best and brightest are still headed to Wall Street and taking jobs in consulting. They just don’t plan on staying there very long.
On the surface, Harvard’s annual senior survey doesn’t say anything all that illuminating when it comes to the career paths of Ivy Leaguers. Roughly 16% of graduates have accepted jobs in finance, up from 15% last year. Another 15% have taken jobs at consulting firms, down from 16% last year. Nothing earthshattering. Then you glance down at the “where you hope to be in 10 years” chart.
Just 5.7% of graduating seniors plan to be working in finance in 2024, meaning two-thirds of young bankers won’t even put a decade of work in before ditching the industry for something else.
Even more eye-opening, 0.68% of graduates hope to be working in consulting in 10 years. To put that in simpler terms, just one out of every 22 new consultants plans to remain in the industry for at least a decade. No other category comes even close to the disparity seen in finance and consulting. Nearly two-thirds of Harvard grads who took a job in technology plan to stay for the long haul, for example.
To be fair though, investment bankers and consultants have often used their first career stop as a stepping-stone to something else. But you would figure more than just a handful would look to make a career out of it. Banking and consulting recruiters be warned: life is going to get awful busy in the coming years. You’ll have plenty of holes to fill.
Best Small Schools for a Career in Banking (eFinancialCareers)
As one would expect, hedge funds, private equity firms and banks pluck heavily from Ivy League schools and large state institutions. Still, there are some small liberal arts colleges that are highly popular amongst asset managers.
Goldman on Pay and Hiring (eFinancialCareers)
Goldman Sachs just laid out its strategic plan for the year. The short of it: compensation is likely to be cut and computers will continue to replace humans.
Fewer Cops on Patrol (WSJ)
If you’re walking down the hall of a big bank next month, you’re likely to see fewer discerning looks. Regulators are reducing the number of examiners who have physical offices in major U.S. banks.
Steel Back on the Street (NY Times)
Former Goldman Sachs exec Robert Steel has been named the new chief executive at investment advisory firm Perella Weinberg. Steel, the former deputy mayor of New York City, is taking over for co-founder Joseph Perella, who is moving to the role of chairman.
Meditate Your Way to Millions (Bloomberg)
The key to making millions on Wall Street? Transcendental meditation, so says hedge funders David Ford, Paul Tudor Jones, Ray Dalio and many others.
Why Hedge Funds are Stinking It Up (Bloomberg)
Hedge funds are having a lackluster year, in part, because the sandbox they are playing in has shrunk, according to Goldman Sachs’ David Kostin. There just isn’t enough volatility within consumer discretionary stocks, which is where hedge funds usually make their money.
Record Sentence (TODAY)
Former SAC Capital portfolio manager Matthew Martoma could be sentenced to as many as 20 years after being convicted of insider trading. It would mark the longest sentence ever handed out for the crime.
Buzz Around the Office
It’s Five O’clock Somewhere (Sun Sentinel via Dealbreaker)
A district court judge was arrested this week for driving under the influence after striking a patrol car and repeatedly slamming her BMW into the gate outside her own courthouse. This was at 8:45 a.m.
Quote of the Day: “We need to recognize the tension between pure free-market capitalism, which reinforces the primacy of the individual at the expense of the system, and social capital which requires from individuals a broader sense of responsibility for the system. A sense of self must be accompanied by a sense of the systemic.” – Bank of England Governor Mark Carney on the moral role bankers must play