They call it the grind. The long hours and heavy workloads. Always on: rapid response and nonstop vigilance – head down and obedient. Bankers are the masters of appearances, Amid changing conditions and mounting demands, they operate with calm and certainty. They roll up their sleeves and cover every angle, boiling it all down to a 10-page pitchbook.
And they carry their loves lost, vacations missed, and weekends worked as their badges of honor.
Maybe that’s how banking used to be – the playground for technical wizards and wheeler-dealers, the overworked and overstimulated overlords who live to max their year-end. These days, bankers – associates and directors alike – are pushing back against this life. Forget money, they crave time and freedom. They seek a more balanced and relaxed approach, one where every client doesn’t call for all-hands-on-deck urgency. And the best banks are heeding this call according to the newly-released Vault Banking 25 ranking from Firsthand.
HOW BANKS PERFORM…FROM BANKERS THEMSELVES
For the fourth consecutive year, Centerview Partners reigns as the top bank to work for, widening its lead over runner-up Evercore in the process. Overall, it earned the highest scores from bankers in 15 of 20 quality of work and life categories. By the same token, Golden Sachs again earned the highest score for Prestige, while Loop Capital made a clean sweep of all four diversity categories.
Since 2007, the Vault Banking 25 has taken The Street’s pulse on everything from compensation to work conditions. The rankings are based on surveys conducted by Firsthand. An infobase platform that conducts professional coaching, collects employee reviews, and posts employment opportunities, Firsthand operates in industries ranging from consulting to law. In their latest banking survey, which was conducted in the fall of 2022, Firsthand received responses from over 3,000 banking professionals.
In the first part of the survey, respondents evaluated their employers in 20 workplace and 4 diversity dimensions, including Leadership, Internal Mobility, Hiring Practices, and Relationships with Supervisors. To do this, Firsthand employs a 10-point scale, where 10 is the highest possible score. Firsthand also conducts a second survey on Prestige. In this dimension, respondents rate firms they are familiar with using the same scale (excluding their own employer, of course). From there, the responses are tabulated using a weighted formula. Like previous years, Prestige enjoys the highest weight at 40 percent. Firm culture accounts for 20 percent of a ranking, with Compensation, Business Outlook, and Overall Satisfaction each garnering 10 percent. The remaining 10 percent is split evenly between Work-Life Balance and Training.
CENTERVIEW SETS THE STANDARD
What sets Centerview Partners apart from the rest? Start with the tale of the tape. Centerview Partners earned the highest average scores in three-fourths of the dimensions: Business Outlook, Compensation, Culture, Firm Leadership, Formal Training, ESG, Hiring Practices, Hours, Informal Training, Internal Mobility, Promotion Policies, Quality of Work, Overall Satisfaction, Wellness, and Work-Life Balance.
Not only did Centerview Partners dominate across the board, they also gained ground. They replaced 3rd-ranked Moelis and Company as the top firm in a stunning nine dimensions (Business Outlook, Firm Leadership, Hours, Internal Mobility, Overall Satisfaction, Promotion Policies, Quality of Work, Wellness, and Work-Life Balance). At the same time, Centerview again produced the highest averages in five dimensions: Compensation, Culture, Formal Training, Hiring Practices, and Informal Training. Oh and it knocked off Guggenheim Securities as the best bank for ESG. In fact, Center Partners finished among the five highest averages in every category: Relationships with Managers (2nd), Vacation Policies (2nd), Benefits (3rd), and International Policies (5th). The only area where it remotely struggled was Prestige, which carries a 40% weight. In this dimension, it ranked 5th among its peers.
In employee reviews collected by Firsthand, you’ll hear employees gush about Centerview Partners in a number of areas: “Small firm feel”, “flexibility”, clear path to promotion”, and (of course) “insane pay.” One anonymous survey-taker boiled the firm’s appeal down this way: “Unparalleled deal flow, extremely competent and experienced management, and ability to win large mandates means Centerview is always in a position to do well in any environment.”
And they do well by doing right by their employees, adds another employee who came to Centerview Partners from a different firm. “I moved from a platform that had protected Saturdays, which I thought was great. When I came here, and observed how senior people actively try to avoid having people work on weekends unnecessarily, I realized the protected Saturday thing is not necessary—you just need the right mindset/cultural framework.”
A LONG-TERM GIG
The perks don’t hurt either, adds another 2022 survey-taker. “Our meal and Uber policies are by far the best in the industry. There is free breakfast, lunch, and barista-staffed coffee in the office. There is also no cap on dinner (unspoken $50 cap), and they do not enforce any Uber restrictions regarding the time you leave the office. We are also encouraged to go on mentorship lunches and dinners where we have the entire meal reimbursed, and where most people choose to go to Michelin-rated restaurants.”
Even more, Centerview Partners invests heavily in its employees and sets them up to succeed. That’s because they expect hires to stay with the firm, rather than seek out opportunities elsewhere, Hence, the firm has developed a high touch, apprenticeship-driven culture. It includes regular training and one-on-one coaching, where employees are pushed to stretch their boundaries – or what is called “play up” at the firm.
“Centerview continues to make career development a priority,” notes one staffer. “The three-year analyst and associate programs are built around a commitment to develop an overall business skill set, not just a narrow functionality in finance. A Centerview banker understands the full strategic, operational, and financial suite of issues—which is a huge boost relative to peers in banking or PE as your career progresses.”
Evercore photo
LOOSENING THEIR TIES AT EVERCORE
Evercore again placed 2nd in the Vault Banking 25. The firm’s strengths? For one, Evercore is formidable in nearly every facet, posting Top 10 scores in 16 of 20 dimensions. It also produced the 2nd-highest score for Formal Training and 4th-best for Prestige. In 2022 surveys, employees laud “clear promotion pathway(s)” and regular performance reviews geared to help employees take the next step. Like Centerview Partners, Evercore takes a more “generalist” approach that exposes junior bankers to more industries and functions. That way, they can better tailor their work to their interests.
“The training is unparalleled,” explains one Evercore survey respondent. “I’ve heard from colleagues at other banks about the kind of training they’re given, and Evercore’s is a class apart. Senior members of the team are constantly giving me the chance to learn, grow, and take on additional responsibility. The sky is truly the limit.”
Quality of life is hit-or-miss at Evercore according to survey results. One respondent noted that vacations are respected, but staff is working Sundays “more often than not.” Another notes that “some of my colleagues will work 90-hour weeks, while some only 60.” Still, the compensation package is “generous,” notes one respondent who touts the heavy dose of equity and deferred cash as part of the bonus package. And the culture is a little less straightlaced than expected too, adds another employee surveyed by Firsthand.
“Best parts: Dinner is paid for each night; people don’t care if you wear casual shoes in the office, and everyone wears t-shirts on Zoom; and flexibility to work from home (policy is four days in the office and one day WFH).”
GREAT ACROSS THE BOARD
More than anything, Evercore respondents appreciate the firm’s patient, long-term planning that has made it the “bulge bracket boutique.” With that has come an aversion to layoffs, with the company instead placing a premium on flexibility to maximize talent and resources.
“Leadership works as hard as everyone else and is always focused and reflecting on ways the firm can improve,” adds another survey respondent. “Evercore has a great position in both M&A and restructuring, and can be dynamic about reallocating labor between the two practices.”
Rounding out the Top 3 is Moelis & Company. Despite falling behind Centerview Partners in several dimensions, Moelis & Company’s number was quite impressive in 2022. Out of 20 dimensions, the firm ranked in the Top 10 in 19 of 20 dimensions (with ESG being its lowest average – and that was still good enough for 11th-best among banks). Notably, Moelis & Company ranked 1st for Relationships with Managers and 2nd in 11 dimensions – including the all-important areas of Firm Leadership, Internal Mobility, Quality of Work, Satisfaction, and Wellness.
A LONG-TERM VISION
One reason for Moelis’ high satisfaction rate is quality of life. In a 2022 survey, a Moelis staffer noted that the firm mandates protected weekends and vacation time, along with the ability to work-from-home sometimes. That’s coincides with an enviable compensation package that is expanding rather than contracting.
“One new benefit added this year is family-building assistance, which is an important addition for anyone who needs fertility treatments or is building a family via adoption/surrogacy,” writes one survey-taker.
Another strength is how the firm’s growing its talent. That translates year-round classroom training, not to mention exposure to a variety of teams and deals. “Moelis is the only independent investment bank structured to develop talent internally and promote partners from within,” adds another staffer in a Firsthand review “We have promoted approximately 50 percent of our partners from the junior ranks at Moelis.”
Like Evercore, Moelis doesn’t sweat the highs-and-lows. Instead, as one respondent observes, the firm measures business cycles in years. “Sometimes it’s easy to forget how insulated Moelis is relative to the bulge brackets,” adds another employee. “I’m glad that the firm takes a long-term view toward talent and growth, because when financing markets clam up or deals slow down, I don’t worry about losing my job.”
LESS GRIND, MORE KIND
Today, investment banking is threatened by something more insidious than evolving regulations, technologies, and models. Instead, it is something more common: burnout. Fatigue produces mistakes and dissatisfaction fuels turnover. In response, banks have been installing programs that provide greater freedom and consistency. They include enforcing protected weekends and and rolling out mental health and wellness tools such as flexible arrangements. These efforts have made a ripple. According to Firsthand survey results, Vacation Policy scores have risen by 8 points in the past year, with satisfaction rates for Compensation and Work Hours inching up by 6.0 and 4.5 percent respectively. These improvements have been the biggest takeaway in the 2023 Vault Banking 25 survey says Derek Loosvelt, editorial director at Firsthand.
“Almost across the board, in all categories in our survey, satisfaction was up versus last year,” Loosvelt told P&Q in an exclusive interview. “In fact, the only category that we saw a decrease in this year was Business Outlook, which was no surprise given the macroeconomic outlook last fall when we administered our survey. In addition to the rises in scores in vacation policies, work hours, comp, benefits, wellness, and work/life balance, scores rose in training, quality of work, client interaction, and diversity. So, it seems clear that, in general, the top banking firms are improving initiatives in many areas, addressing what young professionals want (out of any role, not just a finance one): a good culture, better work/life balance, meaningful and challenging work, more diversity, more mentoring, early responsibility, and fair compensation (to match the intensity, stress, and workloads of their jobs).”
Overall, the Vault Banking 25 ranking remained relatively consistent. Morgan Stanley and Lazard again held the 4th and 5th spots respectively. Guggenheim Securities slipped from 7th to 8th, while Bank of America tumbled out of the Top 10 entirely after declining to participate in 2022. That left the window open for William Blair, which debuted at #9 after previously not being involved in the Vault Banking 25. Otherwise, Qatalyst Partners and Jefferies & Company returned to the ranking in 2023. They replaced Stifel, Nomura, and Credit Suisse in the Top 25. DC Advisory gained the most traction, rising from 20th to 17th. In contrast, Tudor, Pickering, Holt & Co. lost two spots to 19th. 14 of the 22 banks ranked in last year’s Vault Banking 25 posted lower scores, led by Tudor, Pickering, Holt & Co. (-.350) and Greenhill & Company (-.232). While Centerview Partners improved by .246 of a point, it was eclipsed by DC Advisory, whose score rose by .360. It ranked among the ten-bast in 6 categories (led by the 2nd-highest score in International Opportunities).
Goldman Sachs was the most popular bank for men and women, but failed to make the top ten most popular companies on the overall list. Courtesy photo
BIG BANKS COSIDERED THE MOST PRESTIGIOUS
True to form, Prestige commands the most importance in the Vault Banking 50. Here, Goldman Sachs is the gold standard. Like previous years, Goldman Sachs ranked as the top bank for Prestige with an 8.984 average. To put that number in context, it was .574 and .762 of a point higher than runners-up Morgan Stanley and JP Morgan. Goldman Sachs’ Prestige score also overshadowed Evercore (8.118) and Centerview Partners (8.113), the top performers in the overall ranking.
The Prestige average does represent a flaw in the Vault Banking 25. After all, the 40% weight enabled 8 banks that didn’t participate in the employee survey to be included in the ranking: Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America, Qatalyst Partners, Citi, Jefferies & Company, and Barclays. It also measures a perception of excellence – rather than an on-the-ground evaluation of employer performance. Still, Firsthand has collected many qualitative reviews from employees of these firms. Take Goldman Sachs. According to a couple of employees, the firm is pushing employees to cut hours and take time off to curb burnout. Problem is, the workload makes it an issue of “manpower” not willpower.
“There are active efforts to promote work/life balance. There is no shaming in taking vacation days. The firm, however, runs very lean, so there’s very little downtime at work and always a sense of urgency to finish and move on to the next pressing task.”
THROWING DIVERSITY FOR A ‘LOOP’
Strangely, the same firms comprise the most Prestigious list top-to-bottom – just in a slightly different order. The Top 13 remained the same, except for Qatalyst climbing three spots to replace Barclays. As a whole, 13 of the 25 banks averaged lower Prestige scores against the previous year. This includes Goldman Sachs, Morgan Stanley, and JP Morgan, whose averages dropped from .082 to .175 of a point. Credit Suisse plummeted by 1.239 points, followed by UBS Investment Banking at -.433. That said, several firms gained reputational capital in the past year. They include Lion Tree Advisors (+.482), Allen & Company (+.354), Centerview Partners (+.347), and Evercore (+.254).
Derek Loosvelt has a theory on why some larger banks dipped in their Prestige scores. “I think the largest banks had the toughest years,” Loosvelt asserts. “They made the deepest headcount cuts, and they were in the news as the “face” of the down year on Wall Street. So, that likely had much to do with some of the bulge bracket banks slipping in prestige. As for Credit Suisse, though, that’s a unique case, as they recently announced they were exiting certain lines of business in the U.S. (they might even spin off their investment bank and bring back the CS First Boston brand). This was huge, headline news. So, the perception must’ve been that, at least here in the U.S., the firm isn’t as prestigious as it once was. But that could certainly change after the firm reorganizes (if the reorg goes well).”
Although the Vault Banking 25 doesn’t include Diversity measures in its ranking, the data proves insightful. In this space, Loop Capital Markets bests all comers in all four dimensions, though Centerview Partners cracks the Top 3 in each one. A 25 year-old-firm located in Chicago, Loop Capital Markets notes that it averages $750 million dollars a day in average trading volume across 80 countries. While the firm is regaled for its diverse leadership and teams, it also ranks among the best in several dimensions, including Hours (2nd), ESG Practices (4th), Vacation Policies (4th), and Work-Life Balance (6th).
“We are led by true leaders, not executives who hide in offices and send down uninformed initiatives,” observes one employee in a recent Firsthand review. “We have people who are not afraid to enter the trenches to push the firm forward and who listen to rank-and-file employees’ inputs to develop business plans.”
BOA Global Banking and Markets employees in New York City
WHY BANKING MATTERS
Last year, banking focused on helping employees find a balance, so they could maximize their employees’ talents and stave off burnout and turnover. This issue has gained prominence as banking increasingly competes against consulting, tech, and entrepreneurship for talent. Question is, is money the only reason to enter banking?
For Derek Loosvelt, banking offers an array of benefits for young professionals, particularly with gaining experience early in areas that can pay huge dividends down the line in any industry.
“In recent years, many banks have pivoted from merely providing excellent entry-level programs (for young professionals to use to go on to other roles in private equity, hedge funds, tech, etc.) and now also focus on providing long-term career paths for new grads. That widens banks’ recruiting reach and makes banks more attractive to young professionals who want to build careers at a single firm, rather than use their first jobs (out of college or business school) as stepping stones. Add to that the ability to work alongside and learn from incredibly bright and talented senior professionals so early in their career, as well as work with some of the most high-profile companies (clients) in the world, and it’s easy to see why investment banking is still a very attractive career path.”
Click on the links below for more detailed rankings:
Goldman Sachs headquarters in New York City
Team meeting
1) William Blair
2) Moelis & Company
3) Centerview Partners
1) Centerview Partners
2) Moelis & Company
3) Guggenheim Securities
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2) Harris Williams
3) Moelis & Company
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2) Harris Williams
3) Moelis & Company
1) Centerview Partners
2) Solomon Brothers
3) William Blair
1) Centerview Partners
2) Guggenheim Securities
3) William Blair
1) Centerview Partners
2) Moelis & Company
3) William Blair
1) Centerview Partners
2) Evercore
3) Guggenheim Securities
1) Centerview Partners
2) Moelis & Company
3) Evercore
1) Centerview Partners
2) Loop Capital Markets
3) Moelis & Company
1) Centerview Partners
2) Moelis & Company
3) Perella Weinberg Partners
1) Centerview Partners
2) Moelis & Company
3) William Blair
1) Lazard
2) DC Advisory
3) Greenhill & Co.
1) Centerview Partners
2) Moelis & Company
3) Harris Williams
1) Centerview Partners
2) Moelis & Company
3) Harris Williams
1) Moelis & Company
2) Centerview Partners
3) William Blair
1) Centerview Partners
2) Moelis & Company
3) William Blair
1) William Blair
2) Centerview Partners
3) Moelis & Company
1) Centerview Partners
2) Moelis & Company
3) Solomon Partners
1) Centerview Partners
2) Moelis & Company
3) DC Advisory
1) Loop Capital Markets
2) Centerview Partners
3) Moelis & Company
1) Loop Capital Markets
2) Centerview Partners
3) William Blair
1) Loop Capital Markets
2) Centerview Partners
3) Moelis & Company
1) Loop Capital Markets
2) Centerview Partners
3) Evercore
DON’T MISS: INTERESTED IN INVESTMENT BANKING? HERE’S HOW TO LAND A JOB
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Source: https://finance.yahoo.com/news/best-investment-banks-2023-143628513.html