Morning Coffee: Citigroup's budget method of enthusing analysts and associates. PE fund shares the love
Young bankers are not just interested in money. Yes, you get paid inordinately well as a 20-something in an investment banking division, but who cares if your job seems devoid of meaning? Anecdotally, this is one reason why so many young bankers quit: They want to give something back.
Citi has hit upon a means of scratching this itch. The bank has been tweeting a video clip about a new program it's running in EMEA. Twelve of the bank's highest performing analysts and associates from across the region got to spend a month in Kenya helping local entrepreneurs. In the process, the young bankers were a) given exposure to Manolo Falco, head of corporate and investment banking at Citi in EMEA, and a major sponsor of the program, and b) able to offer help to real Kenyans involved in real small businesses, be that selling gas cylinders or cattle feed to running a sewing service and a beautician.
Falco says the program's been a huge success: "All of them have told me they would like to stay longer!”
"It's a totally new culture, totally new people and a totally new business," confirms one analyst, enthusiastically.
"I think it’s something that’s going to be a catalyst for my personal and professional growth," says another.
The Kenyans helped by the Citi juniors are equally keen: "I open my heart, they open up their hearts and we go on a wonderful journey," says the gas salesman.
"What can I say, these guys are so great and wonderful," says the cattle-feed merchant.
Sometimes, keeping people happy is about more than salaries and bonuses. With all banks trying to engage juniors whilst keeping a lid on costs, Citi's program is likely to be the first of many.
Separately, private equity fund KKR has an interesting method of allocating carried interest. Financial News reports that carries interest at KKR is shared across funds instead of allocated to an individual fund or to individuals based upon their performance.
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