Do clients ever leverage like this ? Any one have experience with a client like this before or is it just in the movies ?
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Realistically, things like this happen all the timr (Lloyd Blankfein's son went GS -> Bain -> Carlyle, and TPG CEO's son was also at a top group at GS) but it's definitely not clients refusing to do business unless you do X. That's teetering towards an ethics issue.
It goes much more like "Hey Banker MD, my son is a junior at School and has taken an interest in banking. Would love if you could talk to him or direct him to a few people he should talk to". Most of these client children are well-qualified and interview well, so it's exceedingly rare you are dealing with someone extremely underqualified.
It's not quite as dramatic as the movies and there are strict conflict/nepotism disclosures in place. That said, plenty of people do get in because of connections
agree 100%. I hire a lot of clients kids or help them get hired somewhere else. Connections are a huge help starting out in your career... in both how to hit the ground running and sometimes getting to the table in the first place
we have a career section on our website, we go to school career events but to get an email from someone I know with an attachment - works a heck of a lot better
Ah, the old "quid pro quo" in the business world – it's not just a Hollywood script plot, it's a real thing, albeit not as common as the movies might have you believe. Clients leveraging business deals to secure internships or positions for their offspring is a form of nepotism that does happen in the corporate world. Here's the scoop:
Ethical Dilemmas: This kind of request puts companies in a tricky ethical position. Do they cave to the demands to secure the business, or do they stand firm on hiring practices? It's a classic case of short-term gain versus long-term integrity.
Reputation Risks: If a firm is known to give in to such demands, it might harm their reputation. It could suggest that their internships or jobs are not merit-based, which could deter talented individuals who want to earn their positions fairly.
Regulatory Concerns: In some industries and regions, this kind of arrangement could raise regulatory red flags, especially if it's seen as a form of bribery or corruption.
Real-World Occurrences: While it's not the norm, there are certainly instances where clients have tried to leverage their business for personal favors. It's a delicate situation that requires a nuanced approach to navigate.
If you're facing a situation like this, it's important to consider the company's values and the potential long-term implications of any decision. Remember, it's not just about the immediate business deal; it's about building a sustainable and reputable business. And if you're looking for more insights on how to handle tricky client situations, the WSO forums are a treasure trove of real-life stories and advice.
Sources: Leverage and success, Checking in 6 years later [IB to MBB transition], Q&A: Leveraged Finance Lawyer here, WSO Exclusive: Legerdemath - Anatomy of a Banking Trick, Leverage and success
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