Complaints that new hires drained the Jefferies bonus pool (article)
The numbers that have come out were obviously terrible, but could this mean that it won't be quite that bad for everyone else? The argument basically is that over the 2021-2022 years the company poached a ton of seniors from other banks with high guaranteed money, locking up a big chunk of the bonus pool. They haven't brought in (or haven't had the time to bring in) enough revenue to pay for themselves, so with revenues/bonus pool way down it puts the squeeze extra hard on the rest whose bonus is discretionary. For people at the firm, does this sound correct?
also didn't Jefferies historically pay somewhere between bulges and EBs? they were underwhelming vs. street last year too
Cope. Numbers aren't going to be good this year stop trying to convince yourself otherwise.
yet BMO and PJT had solid numbers...
If those MDs, which were provided guaranteed comp, don't start bringing in money ASAP they are going to be fired af. It's actually not a situation you want to find yourself in lol. Corporate almost alwaaaays breaks even on HR investments one way or another...
Presumably it's a contractual guarantee and any bank worth their salt knows there's a period of time to ramp.
Yeah, agreed. I still do think that banks can be insanely short-term minded though and wouldn't be surprised to see a bank going from hiring people on guaranteed bonuses to firing those same people for not brining in deals in the first 12-16 months.
I mean shoot, you hear it semi-frequently where a bank has to cancel internships or let go of junior bankers they brought on as expansion hires because the powers that be changed from Bullish to Bearish over the course of a few short months. I would be very nervous if I were enjoying a guaranteed bonus but had yet to bring in any new revenue.
A lot are very short sighted, I've seen with commercial banks in particular they overhire and then cut. Particularly those without a real franchise will gut it or even exit or sell the franchise off wholesale. They just don't understand the volatility.
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