It’s a 'terrible idea' to overstate the importance of revenue per managing director.
Bloomberg News reports that Wall Street veteran Ken Moelis said the benefit of hiring big-name bankers can be fleeting because established dealmakers may be content to rely on their relationships rather than build new ones.
His Moelis & Co. has preferred adding a “different kind of managing director, early in their career who really wanted to combine on a collaborative team effort and cover complex situations,” he said late Monday in a conference call discussing results for the period ended June 30. He contrasted that with “a ‘peak hire,’ somebody late in their career who only wants to cover their existing account.”
Moelis, the 59-year-old chief executive officer, highlighted on the call that the company made eight internal promotions to the managing director level this year, while hiring four with that title from the outside. He then responded to a question about whether he expects newly promoted employees to be as productive as those who come from other firms.
Hit the link below to access the complete Bloomberg News article: