Is Juniorization Driving Top Wall Street Talent In-House?

Is Juniorization Driving Top Wall Street Talent In-House?

Everyone knows that investment banking is a stressful, high-pressure field with high rates of burnout, which is why some major Wall Street firms are growing more sensitive to their employees’ work-life balance needs, encouraging them to take weekends off or introducing parental leave benefits. An obvious motivation for these changes is retention: These banks stand to make more money if they can avoid burning their young analysts out in a matter of two or three years.

Wall Street may have another new attrition problem on its hands, though, this time regarding star talent at higher levels. “Investment bankers are increasingly leaving Wall Street to work for the companies they advise,” Portia Crowe writes at Business Insider, “and it’s starting to hurt the banking industry in more ways that one”:

JPMorgan’s Alejandro Vicente, a managing director in consumer goods, is the latest to make the jump. … But he’s not the only one. Earlier this year, former Morgan Stanley banker Alban de La Sabliere joined the French drug maker Sanofi, which is now bidding to buy the pharmaceutical company Medivation. …

The departures are a double-edged sword for banks. Not only are they losing top talent, but they could begin to miss out on deals as companies turn to in-house experts rather than hire on teams of bankers.

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