Moelis response to junior concerns

Call lead by Navid Mahmoodzadegan and Jeffrey Raich (co-presidents, just below Ken)

General initiatives:

  • Buy-in from seniors to sign off on a shell before actual work is done on content to avoid wasted time
  • Shorten pitchbooks for non-live deals
  • Minimize weekend work, and especially Saturday work
  • Hire more laterals to fill gaps and increase incoming class sizes

WLB policy changes:

  • Pencils down policy (sounded like Friday evening/night and Saturday evening/night)
  • Weekend meal stipend increased to $60
  • $2,500 quarterly payments for 2021, retroactive. So $5,000 / $2,500 / $2,500. Meant to be used on things to improve mental/physical health, but no restrictions on use.
 
Controversial

said it below but I'll repeat it here since this is the top comment -- 

They specifically said on the call there is no framework for accountability and they "trust their bankers" -- meaning, this will not have any real or lasting impact to how the work gets done / culture 

That said, the only tangible benefit really is the $10k "stipend" - which is paid out quarterly, and is only half of the $20k bonus portion that CS is paying out in lump sum

Plus CS is giving raises and an unspecified "health benefit" (peloton?) 

There's no actual limit on pitchbook length, it's a soft suggestion to "try to limit length" -- same for weekend work "unless it's a live deal or client request, try to avoid weekend work" -- the bankers who were scheduling 8am catch up calls Saturday morning for meetings weeks away don't view weekends and non-essential work the way the rest of us do and that won't change 

Again, no real standards / limits = worth nothing, and no accountability for those vague and flimsy standards = doubly worth nothing. 

0 * 0 = 0 

I don't post a lot but was curious to see if there was any reaction online to the initiatives and felt I had to respond to this. I think you are spreading significant misinformation and as another analyst pointed out below, your cynicism threatens to undermine any real attempt at change. I'm not an MD but I'm fully on board to doing my part to support the initiatives, as are the many MDs, directors, VPs, associates, AND analysts who all had significant input. I can only speak for the LA/NY offices but the banker committees all had input in forming a solution forward as did subcommittees prior to that.

I'm not sure where you heard that there was no input from junior bankers - that is completely false. There was wide input across a number of meetings with bankers at all levels and executive team members. I somewhat agree Navid/Jeff can sometimes come off as a little insincere, but they are on board with shifting the culture/actively involved in the process and there have been separate MD meetings to set new expectations as well (the call was not the first time they were briefed). 

I've talked with a number of bankers across multiple levels and they expressed optimism around the things being put in place. Time will tell if it holds true but I hope you're willing to defer your cynicism and actually work towards improving things. You're right though, nothing will ever change if people don't want to even consider it

 

Odd to have two different timezones. Are you sure its not 7pm on Fri to Sat at 12pm regardless of office timezone? 

 

Actually think this is kind of brilliant - introduces some information uncertainty on the side of the MD's (are they really away or just the status?) that I imagine leads to less meaningless pings / option to defer work to when its convienient.

"one for the money two for the better green 3 4-methylenedioxymethamphetamine" - M.F. Doom
 

Also saw on the litquidity post that they’re turning off if you’re online or offline on Skype. I find that’s been a major issue in my group. It’s impossible to step away for an hour without the dread of appearing away and getting called out. We’ve all resorted to leaving a book on the spacebar and hoping no one messages us. If that’s real that Moelis is turning off Skype status, that is biggest quality of life improvement for an analyst. Even if I have a free moment during the week I’ve found it very difficult to go out for a run, or go to the grocery store. Even just stepping away without appearing to look busy has become not an option. If this is actually enforced at Moelis I hope all firms adopt a similar stance.

 

Associates and VPs certainly look analysts' statuses.  My Skype status has been "away" for 6+ months - I assumed everyone had been doing this and if they're not they should.

I come from down in the valley, where mister when you're young, they bring you up to do like your daddy done
 

Moelis is the GOAT bank of sweatshops.  Dont believe this will do anything.  If an analyst jumping from the 30th floor apartment after multiple 100hr weeks wasn't enough, zero chance this will do anythjng.

 

To jump off their 30th story apartment?  Yes this option is available to them too

 

The initiatives are mostly across all bankers, which differs from some other banks. 

 

This package is overall pretty promising, but in reality, I think there's only so much you can promise. You can't promise a deck will be shorter because it's situational; turning comments up until the meeting is pretty common (don't expect this to go away); you can't really enforce pencils down policy if you work in a group with great deal flow. 

Do I think senior level bankers will become more aware and sensitive to overworking juniors? Yes. Will that fizzle out to some degree over time? I think so. 

The money is just a "here, this should make dealing with the pain a little more worth it"

Sadly, I think the most promising item listed on this package that will actually produce meaningful change to WLB is increasing headcount with laterals. My group recently increased headcount, and my job definitely felt easier in most ways relative to the year before. Just having an additional person to knock something out simultaneously or to handle the more administrative tasks really does help. Unfortunately, you also have to think about how this will affect staffings, performance reviews, bonuses, etc. 

 

Strongly disagree. Laterals are not for double staffing deals, it is so there are people available for excess dealflow. Plenty of groups are turning down deals.

I think the interesting thing here which is TBD on if it produces meaningful change is that the policies apply to all bankers. If VPs and EDs are forced to be pencils down as well Friday night and Saturday morning, a few might realize things can just wait or are not ASAP. The acknowledgment of an MD having to sign off on the shell of decks can also help prevent ambitious hardos from imagining anything and everything the MD may want to see.

 

Increasing headcount helps regardless whether that's a double staffing (which happens), excess deal flow (to your point), or any BS one-off tasks from a VP that's non-deal related. 

To your second point, I don't think most seniors will be thrilled to change up their work flow, so I don't see much change happening or sticking around

 

Moelis pays a lot more than CS. Much more than $20k more even at the analyst level.

Your pessimistic take likely has a lot of realism and truth in it. I think there is some optimism warranted though. I can only speak from my experience, but part of the book length trimming initiative is being done for purely business purposes due to some research indicating clients are less receptive to longer books delivered over zoom.

 

re book length, the people who took comfort in book length until now are still going to want to take solace in having lots of pages. Maybe it won't all be walked through on a call, but you can bet it'll show up in the appendix or in a separate addendum sent to the client as follow up reading materials or just for the MD's "back pocket" reference 

 

They didn't laugh it off at all. They repeatedly emphasized that they were committed to the guidelines being followed and would monitor the situation and adjust as necessary. They also said that they don't want to implement a bureaucratic big brother system because there are absolutely situations where shit just has to get done. The point is to shift culture, not stick it to seniors.

If anyone wants to know why most banks basically shrugged all of this off - read this guy's posts in this topic. There's virtually zero reward for making an earnest, relatively thorough, and well thought out attempt to address concerns. You're still going to get shit on and people will still whine. So if you're a senior at some other bank, you sit back and think "maybe they're just whiny little bitches, I bet it's just their generation". Not true, but that's the thought process. And it should be obvious as to why. Honest efforts to fix shit need to be met with an appropriate, measured optimism. Cynical bitching helps literally nobody, and actively hurts the cause for everyone.

 

At the end of the day this is all fine but if the client is hard driving the analyst will be working whenever requests come in. I have yet to see our team request something and a bank say "sorry, Saturday's are protected".

 

So, exactly the status quo but increased weekend meal stipend and $10k? I don't believe any of the other changes because they're not tied to any oversight. I laughed when I read this first on Instagram... and people are taking it seriously? It's just "promising to do better."

Not trying to shit on Moelis, they pay a lot better than my bank. But this is a common theme I see across a lot of banks' "response" to the Analyst survey and I think it needs to be called out everywhere.

Compare the Moelis proposals to the original GS13 deck proposals, such as:

* Client meetings requiring materials should be scheduled at least 1 week in advance of the meeting date

* For client meetings, teams should be pencils down 12 hours before the meeting

* Junior bankers should not be expected to do any work after 9 pm Friday or all day Saturday without a pre-approved exception

... see how the GS13 proposals are like SMART goals: specific, measurable, achievable, realistic, and time-bound? Now compare it to "shorten pitchbooks for non-live deals" and "minimize weekend work." You have to measure what you want to improve.

There would of course be exceptions to the above, but if EVERY deal is an "exception" what you actually have is a systemic problem. 

Be excellent to each other, and party on, dudes.