What if recruiting was like sports?
All applicants are subjectively ranked according to GPA, School, Major and then they are assigned draft numbers. The best of the best is the #1 draft pick. The less prestigious firms get the higher picks, while the tops get the bottom of the pool. Eventually it will make every firm on an identical talent level. There can be trades but there will be a deadline and then the playoff/championship season will be who makes the most money.
Maybe Obama will like this
I think you'd have a shitload of Marques Colston stories. Guys drafted in the back of the pack who go on to dominate.
Conversely, the inevitable Jamarcus Russel stories (guys drafted top ten who end up shitting all over themselves) would be epic to watch.
so wouldn't everyone purposefully do really poorly in school on purpose in the first 1-2 years until the talent evens out?
higher draft picks get paid more money but play for weaker teams
but when the analysts want to move on in 2 years to PE I think the money really isn't important to them. Most people here would work rather work for GS TMT for $80K than a midmarket boutique for $150K the first year
What a laugh. Anyone stupid enough to pass on $150 from a boutique to make $80 at GS is just a fucking moron.
And we'd have plenty of David Carr/Cedric Benson/Tim Couch/Ryan Leaf/Jamarcus Russell performances too.
This is completely flawed. Because the difference in terms of what the #1 ranked recruit and the number #150 ranked recruit actually contribute to the success of an organization is minuscule... if anything at all. Less so because of the sheer # of people at a bank (although thats true also) and more so because what analysts/associates do is pretty commoditized and insignificant.
The best analysts aren't going to produce work that helps Piper Jafray win more mandates. And the worst analysts aren't going to cause GS to lose key mandates they otherwise would have won.
Banks performance is also very clunky. So a bank that "drafts" the top bankers, even BSD senior bankers, won't see itself at the top of the league tables for some time to come.. if at all, because there is a shit ton of execution risk involved. Sports teams on the other hand, can literally dominate by poaching the top athletes in the league. Sure there are chemistry issues there as well, but not at all to the same degree.
Not all about GPA and where you went to school. That's why we have interviews
BTW, if you take a cumulative total of 10 year post-college total comp the track of the person choosing GS TMT @ $80K vs the $150K boutique would be significantly outisized.
I think that it would require some serious assumptions on what you were able to do post GS. I agree that it would hold as true if you were able to continue to a top spot at another top place, and then another, etc. I don't think that is going to happen for everyone though. I actually think this would be an extremely interesting study and am curious as to what it would show.
what boutique pays 150k in base salary? Piper Jaffray does not pay that much, Lazard doesn't pay that much, and Jefferies certainly doesn't pay that much.
all-in comp for 2010 was 120k MAXIMUM at many boutiques, and i have friends who worked at much better boutiques - who were payed less, and if you wanna talk about pre 2009... you can forget the bonus.
I think it was more theoretical and not that anyone was talking about a specific opportunity or anything.
lifesgreat it was a hypothetical situation, no bank pays 150k in base for a first year
huh
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