• Home
• »
• Insight

• Home
• Executive Jobs
• Features
  • Focus
  • Career Couch
  • Radar
  • Water Cooler
  • Insight
  • Podcasts
• Place an executive ad

The collapse of major banks and the resultant mergers and acquisitions in the United States, Europe and Australia have not only sent shockwaves through people's bank accounts and share portfolios but through their careers as well.

Investment bankers are feeling the pinch more than people realise, says David Williams, managing director of corporate adviser Kidder Williams.

"When things go bad, a lot of smart, hardworking bankers are on the street," Mr Williams says. "A typical investment banking team can go from 40 to six staff in a heartbeat; and along with the sackings go their high base salaries and bonuses."

Mr Williams became an investment banker after 10 years as a finance academic at Sydney University. He says the general route is to complete a degree in commerce or law, followed by experience at an accounting firm or in corporate law for about two years. Those with excellent academic results and work ethic can soon make their way into a high-paid career in investment banking.

But there is no guarantee of longevity, Mr Williams says.

"In the current financial climate, a 25-year-old could be earning a $125,000 base with a 100% to 200% bonus and driving a Porsche one day, but find himself on the street the next. His next-best alternative job is a very significant discount to this; back in a chartered accounting firm where he might earn $75,000 with no bonus."

Even if bankers can hold on to their jobs through the credit crunch, they won't be bankers forever. Mr Williams describes investment banking as "a young man's business", because the lifestyle is extremely "high maintenance", with long hours and intense pressure. He says there are few investment bankers who stay in the job past the age of 50.

The combination of the current economic climate and an eventual career expiry means bankers need to have a career plan that not only helps them succeed in the present, but ensures a career in the future.

Mr Williams says investment bankers need to think like elite sportsmen. "Like sportsmen, investment bankers can experience nasty shocks outside their control that can take away their super-charged income, lifestyle and image," he says. "There is often not enough thought put into developing the building blocks for a career outside banking, and not enough time spent investing for the future. Bankers need to develop a skill base that can carry them through the tough times, or give them an alternative employment option."

Taking the time to build your skills base will not only help you get a job after investment banking, but make you a better banker in the meantime, Mr Williams says. He lists a variety of financial management skills that are useful in many professions, such as valuation, modelling and accounting.

While acknowledging that it is a tough industry in which to find the time to study further, Mr Williams encourages bankers to make the effort, again pointing to the efforts of sportsmen.

"Today there are more and more football clubs encouraging players to go out and earn qualifications so that they will have a career after football. And these days, even though playing football is a full-time job, the players make time, because they know their careers won't last forever. Banking should be no different."

Mr Williams also cautions young bankers against falling into a series of "policing" roles.

"During a very large takeover, a young banker might act as little more than a traffic policeman, directing lawyers and accountants, but not actually practising and enhancing their technical skills," he says. "Ideally bankers should spend as much time developing their skill base as they do on the work itself."

As a final method of career preservation, Mr Williams also suggests that young bankers invest their bonus cheques rather than splurging.

"Most young investment bankers spend their first two bonus cheques on cars and lifestyle rather than making a wise investment," he says. "They should invest their money wisely from the start so that if and when they do need to leave - for whatever reason - they've got something to fall back on."

---

Building the career

David Williams' top tips for preserving your career:

• Build your skills: make time to learn new skills, and gain experience in other areas.
• Put your skills into practice: don't sit back and "direct traffic" - be sure to use what you have learnt.
• Invest your bonuses: cars, boats and electronic gadgets all lose value over time. Invest your earnings wisely to ensure you have a safety net if you find yourself out of a job. 

Search for executive jobs in Accounting, Banking & Financial Services