Wall Street Putting Profits Into MBA Recruitment?

Investment banks and trading firms have had a very profitable year in 2006. Some of those profits are likely to go into bigger bonuses for bankers and traders -- the Wall Street Journal reports that even entry level analysts at some firms can expect year-end bonuses of $130,000 or more this year. But some of those profits are likely to go into increased MBA recruitment and hiring as well.

In fact, according to the WSJ, current Wall Street staff may see somewhat smaller bonuses than they might otherwise because firms have stepped up their hiring this year, meaning there are more employees to distribute profits to.

Some of this hiring is being done at the top U.S. business schools, where on-campus recruiting is more energetic than it has been in years. A personnel consultant told the WSJ that he expects to see that hiring continue into 2007. Financial firms were slow to hire additional staff following the cut-backs that took place between 2001 and 2003, but managers now realize that they need more talent on hand to take advantage of current opportunities for growth.

Source: "Bonuses to Rise on Wall Street," by Randall Smith, the Wall Street Journal, November 8, 2006