From DealBreaker’s source:
Goldman has been firing IBD first year analysts with buyside offers for next year. Senior people are calling up funds to ask if any analysts have received offers from them. A bunch have been cut so far.
cnbc
http://www.cnbc.com/id/47539157
They clearly read this website.
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It's interesting because everyone on this site keeps talking about exit opps. As for me, a current student, any firm that wants to hire me after graduation will get my respect. I'm a pretty strong believer in company loyalty and there's no doubt that I'll be immensely loyal to the first firm I work at post-graduation.
Will that attitude change once I start working? Maybe. Who knows. But as for now that is what I think.
My understanding is that GS wants to retain talent but this is a shitty way to do it. Why the funds gave them an answer, I don't know. The MDs doing the firing can get fucked...my guess is that they're jealous of the kids moving on to the promised land are are just being bitter and vindictive.
Your second year it will be "Ugh, all this work and only two weeks of vacation!"
Your third year it will be, "OK, I've put in my 24 months, they've made their money off of me. Is there something better out there?"
Fuck company loyalty. They can lay you off after years of service or without any notice out whenever they want. Why should we be loyal to any company?
Interesting. I wonder though, what compels a fund to answer Goldman's question?
the fact that you're so loyal is because you've never worked for a corporation... they'll slit your nuts for a dollar.
This might help you see the light (or rather darkness)... http://www.wallstreetoasis.com/forums/offer-rescinded-3-days-before
Company loyalty does not exist in an up-or-out environment. You are hired for a 2 year contract. You will be fired if they think they can get somebody better and your replacement cost is low.
They really, really do not care about you.
Really the same thing, just pointing out that your first year you are too worried to worry about how much they pay you. Your second year, that's when you want them to start paying you.
One thing is for certain, reality will hit these kids HARD given the current climate. There's a lot less parsing of words, and less money floating around lately as well. As for GS laying off jumpers, I still have yet to hear the reasoning behind it, I can't really understand why an A-List company is dicking around with some entry level grunts...I don't really understand the motive. How/why they're doing this is a rather relevant feature, and this topic comes up once in a while but still no answers. My only guess is that GS wants to cultivate more people for the long term, but firing them seems counterproductive.
Yeah I'm loyal. To myself.
They're just gonna have a harder time recruiting talents...who in their right mind would still take Goldman over an elite boutique or other top firm after this?
if a company wants loyalty, they should've hired a dog.
I'd love to see some analysis on the talent quality effect that this is going to have
aint surprise 2 see goldmans racistness against successful kids, why would anyone want 2 work 4 a hater like godlman
Read the article in its entirety. Those kids were in violation of a contract. You can't have your cake and eat it too.
I do agree though that there has to be something morally pressing (and maybe slightly illegal) about Goldman searching for and PE firms disclosing analysts with other offers. Also, this makes GS look like a bunch of sissy, vindictive, and jealous little school girls.
You guys are looking at this situation all wrong. Put yourself in the shoes of one of these recently fired first year analysts. Why did these analysts join Goldman Sachs? They joined Goldman Sachs to put in their two years so they could then jump to buy side. These analysts not only got their wish, but they were able to do it in a year's time. Instead of spending two years of their lives slaving away in the sweatshop on 200 West Street these analysts only have to spend one year.
Now the real question is what do these analysts do with their year off? Goldman Sachs thinks they are "punishing" these analysts for breaching contract when in reality they are rewarding by giving them a year to do whatever the fuck they want.
But what they want is to learn a shit load! snapping necks and cashing checks!
They don't wana turn up at their mega fund with only a years worth experience next to their bro from MS who has two, who is better, more able and will ultimately have a jump on him....
How common is this across BB firms? I thought it was assumed that most analysts will leave after their 2 year stint? Is it just Goldman screwing over the analysts?
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