The troops were revolting!
Bloomberg reports that Morgan Stanley has abandoned an attempt to block first-year bankers from talking with recruiters for outside firms after employees complained, two people with knowledge of the matter said.
Morgan Stanley had required investment-banking analysts, a title given to entry-level bankers who typically just graduated college, to swear off interviewing with other firms until October 1st, said the people, who requested anonymity because the policy wasn’t public. Morgan Stanley reversed course last week after the analysts, who typically work under two-year contracts, complained they were at a disadvantage to their peers at rival banks, the people said.
Wall Street firms, forced to shrink analyst programs amid a revenue slump, are trying to guard the best of their recruits from poaching by rivals such as private-equity funds. Analysts are also under pressure, as they vie for fewer long-term openings at the banks and stiffer competition for admission to top business schools after their contracts end, said Alan Johnson, founder of compensation consultant Johnson Associates Inc.
'There’s not as many slots as there used to be, and not as many slots turn into first-year associate or third-year analyst promotions', said Richard Lipstein, managing director of New York-based recruiting firm Gilbert Tweed International.
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image: © Matthew Rutledge