JMES

1. How is the current recruitment environment?

Challenging. Platforms have high cost bases post the 09/10 wave of hiring with low volumes of trading and equity issuance. Hiring is happening for crucial hires mostly because of sell side analysts exiting to the buy side or to get back into corporate roles. Expensive Managing Directors and Directors are being made redundant, cheaper staff are being promoted from within and there are selective openings at the entry level. Most research staff are focused on staying busy as opposed to looking for another role.

2. Any trends observed in the last 12 months?

Select hiring in key areas including resources, energy, Oil & Gas and Infrastructure. Some demand in Asia for equities research in similar sectors. The trend overall for research teams has been to selectively shed staff or in the case of the bulge brackets, increasing coverage amongst existing staff on more mid cap stocks to take market share from the 2nd tier brokers.

3. Any views on the next 12 months?

Expected continued tough trading levels and further potential downsizing. 2nd and 3rd tier broking firms have yet to consolidate as many feel they must in an over-broked market. Highly paid Associate level staff who don’t cover stocks or have institutional relationships may see themselves cut to make way for lower paid, just as capable Associates to make the research functions more profitable.

4. Any particular interesting observations or case studies seen recently?

When hiring lead analysts, some clients are still willing to look at market competitive salaries to entice rated lead analysts to their platform. But most hiring managers have made the comment that they are more likely to promote from within and hire at the cheaper junior level.

Equities – Sales, Trading, & Research