Why do people stay at Investment Banks?
New to this subreddit so not sure if this has been discussed before but why do people stay at IBs? Why did Lloyd Blankfein, David Solomon, and Jamie Dimon stay instead of leaving and starting something on the buy side (PE, VC, Hedgefund)
Seems like everyone that’s at their level of success on the buy side is an order of magnitude wealthier with better work life balance and other than Dimon has as much influence on the global economy.
Does Jamie or DJ Sol feel any sense of regret when they see the level of of wealth Schwarzman, Gray, Paulson, Kravis, Harris, Black, Rowan, or others that started in similar places like them achieve.
I know it’s all relative for normal people but the elite players really thought like everyone else they would’ve retired at the 8 or 9 figure level.
Anything I’m missing?
One response
It’s not uncommon for individuals in high-ranking positions at investment banks (IBs) to stay despite the potential for more wealth and better work-life balance in other sectors such as private equity (PE), venture capital (VC), or hedge funds. There are several reasons why people choose to remain in IBs such as Goldman Sachs, J.P. Morgan, or other large financial institutions, rather than pursuing opportunities on the buy side.
Job Security: Senior executives at IBs often have stable and well-established careers. They have worked their way up the corporate ladder and may feel a sense of loyalty to the institution that has helped shape their career.
Challenge and Prestige: Working at a top-tier IB comes with a certain level of prestige and reputation. The high-pressure environment and demanding work can be seen as a challenge that attracts those who thrive on competition.
Influence and Impact: Leaders of IBs like Lloyd Blankfein, David Solomon, and Jamie Dimon have significant influence over global markets and economies. They may value the opportunity to shape policy, make strategic decisions, and have a direct impact on the financial industry.
Personal Satisfaction: Some individuals find fulfillment in their work at IBs, whether it be through managing large deals, leading teams, or overcoming complex challenges. The sense of accomplishment and personal growth can be rewarding in itself.
Career Growth: Staying at an IB can provide opportunities for continued growth and advancement. Executives may choose to further develop their skills, expand their networks, and take on new challenges within the organization.
Risk Aversion: Moving to the buy side entails a certain level of risk, as success is not guaranteed. Some individuals may prefer the stability and predictability of an IB career over the uncertainty of starting their own venture or joining a new firm.
Regarding the comparison to individuals in private equity or other sectors who have achieved greater wealth, it’s important to remember that success is subjective and can be defined in different ways. While some may prioritize financial gains, others may value factors such as job satisfaction, personal growth, and influence in the industry. Ultimately, the decision to stay at an IB or explore opportunities on the buy side is a personal choice that varies from individual to individual.