The thread title is self explanatory. All the other promotions in banking seem more or less automatic. You simply need to sacrifice the time/effort and meet a minimum threshold of competence. Most don't become VPs or Directors because they've opted out of the industry.
MD is another matter. How difficult is the leap from Director to MD? Does it involve satanic rituals with weird chants and animal sacrifices? Is it anything like the partnership process in law firms (ie highly political and requiring a vote from other MDs)?
How do they evaluate your capacity to eventually generate business? If that's part of the formula, do you basically need to start originating deals as a director?
I specifically asked about BBs because they're not partnerships - a new MD won't necessarily dilute the earnings of other MDs. So it wouldn't surprise me if other MDs don't have much of a say.
Please shed light on this for me
As always, I speak only for my bank and I'm based in London, so while I can't exclude satanic rituals, I haven't at least come across them. Oh, and important to disclose that I work in coverage, not a product team (I expect it's broadly the same, but maybe the evaluation criteria are a little different).
In short, there's a committee that decides whether you get promoted or not.
You need to apply / petition to be promoted to MD, and you'll have appointed a secondee who seconds your bid. Beyond that, you will need to have a handful (6 - 8) of other MDs who will support your petition - so in that sense, it's important to be liked, although that isn't everything (for example if you have an Industrials ED / SVP who is a genius rainmaker but doesn't get on particularly well with the Germany coverage MD, but who clearly brought in 50% of Germany's budget, ask yourself whether that Germany is going to say "no, not supportive").
So you have a secondee and a group of supporters. Your case also needs to come (to answer your question) with clear evidence of being able to source and manage deals. At my bank that means, during your ED / SVP (whatever terminology your bank uses) years, you've brought in around 5 or 6 deals (depending on size, visibility, etc.). That does NOT mean having been the 4th ED staffed on a deal and tagged along to a few meetings. That means "this deal, this revenue. That would not be here without me, and these guys and girls agree with that".
So that's it - you need to bring a case and have the support of several MDs. You can try a couple of times and while some people will make it first time, it's not unusual to need to try a couple of times (although maybe after the 3rd decline you need to read the writing on the wall).
Hope this sheds a little light on what is a very obscure process.
This is incredibly helpful. Thank you.
This fits my observation that people spend different periods of time as directors/SVPs - I guess you remain there till you either successfully petition for MD or are fired.
I'm in a product group and i've seen several MDs be promoted solely based on their capacity to execute deals brought in by coverage. At least this is my perception anyway.
I'm a VP3 (soon to be SVP) and the notion of petitioning for MD anytime soon seems completely preposterous. I've never generated a dollar of fees. The idea of having to generate 5-6 deals for a promotion is scary, but i intend to make it a priority in the new year.
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