to cull 3000 – or roughly 5 per cent – of its global workforce. Others, from Goldman Sachs to Credit Suisse, have all reduced their workforce this year.While activity is slow, there are still some big deals, and banker fees, on the cards.Origin Energy’s $18.2 billion takeover by BrookfieldA deal involving an investment-grade company such as Brookfield typically garners about 1 per cent to 2 per cent – of the $18.2 billion enterprise value – in fees for the financial advisers.
The pressure on senior bankers to win business and justify their salaries, therefore, is at a knife-edge, especially when transaction volumes dip. It’s almost impossible to get exact figures, but Macquarie is the biggest employer with about 150 people in its investment banking and capital markets businesses.UBS and Goldman Sachs supply about 125 apiece, and Morgan Stanley, Citi, BofA and Barrenjoey employ between 75 and 85 bankers each.
“Client boards are also seeing a rise in shareholder activism, not just from the traditional self-styled activists, but from active fund managers,” Hersey says.