Jefferies' presentation on its massive managing director hiring
While some banks are cutting staff and trimming managing directors (MDs), others are hiring them. Citi, Credit Suisse and Goldman Sachs are in the first category. Santander, Deutsche Bank and Jefferies are in the second.
Jefferies' enthusiasm for adding managing directors is no secret. CEO Richard Handler said earlier this month that the bank has added 111 MDs to its investment banking team alone this year, both through promotions and internal hiring. By 2024, Handler predicted that Jefferies will have 360 MDs, a 70% increase in four years.
Today is Jefferies' investor day, and the bank is elaborating further on all the new MDs. In the presentation to investors, Jefferies explains that...
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Proportionately, the biggest increase in Jefferies MDs is in APAC
More than half Jefferies' current MDs weren't around in 2019
But Jefferies has been hiring below MD level too
In 2019, Jefferies had 954 investment bankers at all levels. Now, it has 1,489.
All the new MDs (plus technological investments) are paying off in increased overall revenues per head
This is where you'll find all Jefferies' investment banking MDs
And the new MDs are covering all these new sectors...
The implication is that if you're an out of work managing director, or director, or maybe even a vice president hey, then Jefferies might want to hear from you. It will probably be especially enthusiastic if you're in any of the new or expanded sector coverage areas (healthcare technology, medical technology, agriculture, buildings, chemicals, industrial distribution/services/technology, content production, digital media, fintech, payments, security software, sports, supply chain, telecoms, luxury goods, apparel, energy transition and more!).
Whether Jefferies' existing staff are happy with all their new colleagues is less clear, particularly after complaints about bonuses last year. Handler says, however, that he's alert to the assimilation issues and is acting to mitigate them. “If we are not able to blend our teams in a unified manner, we will create many of the problems some of our competitors are currently suffering,” he reflected in his recent letter.
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