Why bankers quit?

[Andy Nguyen]

NYMag ran an article recently using survey result from 74 current/former finance workers. The result is this infographic.

 

[Cary Ferguson]

1) What ex banker rolls on a fixie? Haha (Any Portlandia watchers out there??)
2) Only 3% want to be artists? Does selection bias imply that bankers aren't creative?

 

[Andy Nguyen]

50% of these people make less than 100K/year. Probably they quit after realizing Wall Street isn't a get rich quick path they always dream of?

 

[Nicolas Lopez]

Its pretty easy to make an infographic based on the opinion of 74 frustrated financiers. Funny how they mention food trucks. If you ever get time to watch a documentary on the start of the current food truck trend, 70% mention coming out of careers in finance.

 

[Andy Nguyen]

Finance people have an undying love for food
http://www.nytimes.com/2012/04/01/business/ahmass-fakahany-from-merrill-lynch-to-restaurants.html?hp

 

[ThinkDifferent]

50% of these people make less than 100K/year.

this survey is not about bankers then. who on earth can make 60K or less working on Wall Street?

 

[Ken Abbott]

this survey is not about bankers then. who on earth can make 60K or less working on Wall Street?

There are plenty of entry-level positions at or below this level, depending on the type and size of firm.

 

[Eric Zhang]

A lot of bankers wanna get out, but actually more guys want to get in. It's like an endless cycle?..

 

[Jayanthan]

they make still less than 60K, and still work around the clock.
Let's suppose
Average work 70 hrs/week
Total hrs in a yr = 70*52= 3640
Avg pay/hr = 60000/3640 = $17.48

Wall street employees are working for $17/hr. Is that even possible?

 

[Ken Abbott]

Where do you get 70 hours per week? While many junior investment bankers work those kinds of hours (not necessarily engaged in productive pursuits during that time), I have 29 years of empirical data at five firms that suggests that 50-60 is more realistic.

 

[Jayanthan]

Thank you @ Ken Abbott fro the reply

I've just come up with that 70hrs from what I have heard and read. Sorry about that.
Lets say 2 weeks vacation-- to boost up the number
Average work 55hrs/week
Total hrs in a yr = 55*50 = 2750
Avg pay/hr =60000/2750 =21.81 (excluding tax)

Are they working for $21.81? Would they (Single guy) be able live with that in NY? What about the life style they want to have or intend to have?

I am sure, fresh engineering graduates will at least match this while they are living in OH ( working for GE) or IN ( Rolls Royce). Just an example.

I've heard that Bankers are very driven. What are they driven by? what they motivate them? I am just curious to know !!

 

[alain]

I've heard that Bankers are very driven. What are they driven by? what they motivate them? I am just curious to know !!

usually? $$$

 

[Andy Nguyen]

A lot of young people get into banking with the belief that if they put their heads down and do the grunt work after a few years, they will be able to retire after making their millions or so-called "walk away" numbers.

 

[Jayanthan]

Thank you Andy Nguyen and alain !!

Having read the above article, $$$ is just pure perspective. Isn't it?

 

[Eric Zhang]

A lot of young people get into banking with the belief that if they put their heads down and do the grunt work after a few years, they will be able to retire after making their millions or so-called "walk away" numbers.

I definitely agree with this idea. As one of this kind young people, I always think: is it worthy to do that? Before we earn enough money for retirement or "walk away", we may lose too much time or too many chances to live a better life. Maybe that's why so many bankers want to quit.

 

[Jayanthan]

I definitely agree with this idea. As one of this kind young people, I always think: is it worthy to do that? Before we earn enough money for retirement or "walk away", we may lose too much time or too many chances to live a better life. Maybe that's why so many bankers want to quit.

does that mean, they don't make money

 

[Andy Nguyen]

It's a target that keeps moving further and further. So they end up in a job that they hate but still have to slave away to afford the lifestyle.

 

[Eric Zhang]

does that mean, they don't make money

They do make a lot of money. But the utility of money seems not to be so high as they expect

 

[Ken Abbott]

Some do well. Others less so.

The ones that do well tend to be the ones with a genuine interest in finance and/or economics, not the ones chasing the $. For too many, the business ends up being something to which they devote their waking hours in a passionless pursuit of earnings.

 

[Jayanthan]

appreciate your response Ken Abbott. Thank you