The Financial Times (FT) has an interesting article today. The newspaper reports that several leading investment banks have rather ambitious hiring plans next year, on the back of record profits in 2005. Well, we already know that (and reported on it last week), but the FT has some stats.
According to the newspaper, Bear Stearns and Lehman Brothers plan to boost headcount by between 5% - 10% next year. And, so the story goes, Goldman expects to increase its payrolls by around 8%.
Lehman Brothers, which has doubled headcount in the last 5 years (though two or three thousand were added because of the Neuberger Berman acquisition), grew by 17% in fiscal 2005 alone. And Dave Goldfarb, Lehman's CAO, has confirmed that the firm will be on the hire 'across all business segments and regions' in 2006.
Barclays Capital (never one to be left out in the hiring stakes) is also said to be looking to increase headcount by 15% next year. In truth, even though fixed income revenues are likely to be further knocked back next year, with M&A income expected to really come on stream, every major investment bank is likely to be in the market in 2006 for talent. The likes of Deutsche Bank, Merrill Lynch, Morgan Stanley and UBS will not be shy in getting out their cheque book.
2006 looks set to be a bumper year for recruiters.