First the not-so-good. According to a recent article by the Financial Times, job cuts at the largest US banks this year are on course to exceed 11,000 in 2023. Include a smattering of cuts at the middle market and boutiques and the number is likely around 12,000. Based on our data collection from firms across Wall Street, just-paid mid-year Investment Banking Analyst bonuses are down on average 30-60% from 2022. This is a precursor of what to expect for the rest of the Investment Banking world’s fiscal year-end bonus numbers.

Given the recent lack of deal flow, over-hiring from 2020-2022, and big jumps in base pay (Analyst/Associate level in particular), the carnage is not surprising.

Now the good. Despite the market turmoil, some investment banks have seized on the opportunity to land potentially otherwise unattainable talent, likely at a significantly discounted compensation number. And for good reason, during the 08-09’ recession, investment banks, such as then recently established Moelis and Centerview, took advantage of the dislocation amongst their competitors to hire aggressively and quickly establish themselves as major players amongst Wall Street’s more established firms.  

Instead of large, multi-year guarantees… “Opportunity-focused,” “upside” and “stability” are the en vogue buzzwords amongst candidates looking to potentially greener pastures this year. Firms on the list below focused heavily on offering these attributes to win over burgeoning and established calling officers to take their respective FIG verticals to the next level of success.