"Banks are forcing 50 year-old MDs to take early retirement and it's devastating"
It's the end of the year and with an eye to bonuses, banks are looking at who they can get rid of. I have many friends, good people, who are finding themselves caught up in the phenomenon of early retirements.
Get Morning Coffee ☕ in your inbox. Sign up here.
It can be devastating. People who were loyal to a single bank for years and who presumed this bought them some job security are finding they were wrong. As banks clear out 'pale, stale, males' and diversify, it's the experienced male MDs who often get asked to retire. Many are years from retirement age and never expected that it would happen to them. They're suddenly left without a sense of purpose and are bequeathed a sense of betrayal: they've been taken for a ride by the banks they trusted.
These forced retirements aren't always obvious. It's not uncommon for banks to ask those afflicted to become "special advisors" or "executive vice chairmen." These sound like good jobs, but they are not. They usually mean that you're no longer an employee and that you no longer draw a salary. Instead, you 'eat what you kill.' You get a percentage of deal fees and your expenses covered (within reason). Being an executive vice chairman can be highly pressured as a result. It can also leave you a lot worse off. You lose the prestige of your former job. You also lose your executive assistant and your office.
No one wants to do these jobs. Therefore, when you see someone with the title, you can usually presume that it was not their intention. It might be OK to become an executive vice chairman aged 65, but when you're 50 you still need to work and to earn money. When this is taken away from you, it is a big blow. My condolences to all who are suffering.
Robin Underwood is the pseudonym of a retired MD
Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, WhatsApp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.
Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libellous (in which case it won’t.)
