David Drake Chairman, LDJ Capital There’s a growing trend on Wall Street that’s keeping everyone on edge: an exodus of talent. For better than a century, those with dreams of working in the world’s most massive, dynamic market have flocked to Wall Street. But in the last decade, the standard compensation package at most firms -- 20 years of 100 hour weeks in exchange for increasingly large bonuses -- has lost its appeal. For the last few years, Wall Street has watched helplessly as some of its finest people have packed up and left. All estimates say Wall Street is still running strong, but losing valuable human resources to other ventures greatly weakens its standing. So what gives? The recent recession hit some big businesses hard, including banks. Even now that we appear to have weathered the financial crisis, Wall Street is
WALL STREET DISAPORA SEEKS NEW FAMILIES
still struggling to rebound from the widespread criticism and negative public image the recession left with big banks and financial firms. Hatred has a long shelf life. The working atmosphere at many Wall Street firms only adds insult to injury. The young talent that Wall Street attracts -- aggressive and driven -- won’t stick around long for “redundantly routine” work. If they’re miserable, they won’t stay. Not surprisingly, many of Wall Street’s best and brightest are leaving for startups. They promise excitement in the form of innovation and constant risk. And they pay. Success at a startup means more money in the pockets of innovators and less going to maintain a corporate hierarchy. And then there’s the fame. Successful startups make the front page news in every media venue from the Wall Street Journal to the tiniest blog.
85 FAMILY OFFICE ELITE MAGAZINE
My decades of experience in the financial sector tells me the exodus from Wall Street is about personal exploration. More than money, they’re seeking the satisfaction that only comes from personal growth. Some of the most successful ventures today are those that have found a way to offer both -- and they are a magnet for the flow of talent leaving Wall Street. Mark Dimont, for instance, left his Wall Street career with an investment bank a few years ago to join tech-startup, Dataminr. When Chelsea Clinton realized that Wall Street wasn’t giving her the motivation she was looking for, she moved decidedly into a spot with NBC News as a commentator. Oddly, one of the biggest destinations for the Wall Street diaspora is one of oldest and most traditional - the Family Office. Since