Earlier today it was rumored that Citi had “kicked off week three of a research department hiring binge that has unemployed sell-side analysts partying like its 1999,” starting with the signing of a multi-year, multi-million dollar guaranteed package for a mid-cap software analyst. Some people thought this was outrageous, due to the fact that the alleged money was coming from TARP. We just thought that, if true, it was an outrage that anyone would be getting this kind of contract before Vikram got his Zen Garden. So we were delighted to hear from a Citi spokesman, who assured us it wasn’t true.
Bess: Zen gardens aside, your source is wrong and so I cry bullshit to “And, Yet, Vikram Is Still Down One Zen Garden“.
1) We do not give multiyear guarantees.
2) We don’t cover CVLT.
3) In the US, we have hired only one analyst since September–hardly a binge. (We did hire one Latin America equity analyst who is based outside US and hired a head of Latin America research based in NYC. But he is a manager, not an analyst.)
Update: From the original tipster:
Point 1. According to everyone I know with knowledge of the situation, this is false in this case. I am not going into more detail but one of the key negotiating points was the multi-year guarantee.
Point 2. CVLT was one smaller name that he covered at his previous job that was mentioned jokingly. Part of what makes this hiring so funny is it APPEARS that Citi is paying for his Valley relationships, allowing them to compete for smaller M&A deals that would normally be handled by the little guys. Is their IB franchise that desperate these days?
Point 3. They have been doing Senior Analyst interviews for “three weeks straight across several sectors.”
That’s about as specious a denial as they come. On the other hand were the rumor even colorable Gasparino would have broken it. I call double bullshit.
Hey Bess,
Team Edward or Team Jacob?
Or is it Team Vik or Team Lloyd?
I’m binging on zebra cakes right about now.
-vickles
@1 it’s a terrible denial. original story’s for sure true. (and gaspo didn’t break it because he was too busy tweeting that blankfein no longer reads.)
Who’s your baby’s daddy?
- Dick Parsons
Point 3 from the tipster only states that Citi has been interviewing… if interviewing = hired, then where the hell is my paycheck from the firms that didn’t hire me, but interviewed me.
@6 true, but it’s a tough question, believe the guy who’s unclear on ‘hiring’ vs. ‘interviewing’ or CITI?
False on two counts -
First, nobody being offered a job – least of all an interview – from Shitibank is partying and second of all they are not hiring because they still have too many analysts.
@8 you realize we’re not talking about like 1/2/3rd yr analysts right?
erroneous!!
she was my first asian!
who’s the twit doing the hiring? who decided there was a gaping hole in research? big revenue driver, research…not
@7 – you have a point. However, tipster’s inaccuracies throw into doubt the balance of his/ her statements. Just sayin’
Sounds like Jeffrey Chiang is back.
seems the tipster has been trumped by the tipee. that said, appears our (wo)man on the t-line has some good intel. that said, I’m sure the analyst in question is about to get a big jo-boo from this dust up. as ton-loc said: “this is one more job that he won’t be getting.” damn! finally, can we get a show of hand from all those that have multi-yr guarantees from viky and the gang?
@5 – you better check yo-self, befo’ you wreck yo-self! then go examine your motives.
citi research is not on a hiring spree. they hired some software analyst from cowan to replace the previous analyst, who left with his team to go to ubs. they all got doubled up. citi’s lost several key analysts recently because they can’t match what everyone else is paying.
citi research is going down the shitter. half of the associates are in buffalo now and those in nyc are getting treated like shit. anyone who is good is out the door when things pick up. management’s saying they’re going to pay competitively this year. lol. they can’t afford what everyone else is paying.
i believe the tipster. citi lost brent thill (their head software analyst) to UBS when their’s jumped ship to a boutique. they’ll def need to replace him