For Recruiters
The golden goblet may be going around again at SocGen.

SocGen's researchers could sup at the lucrative severance pot

If you're going to lose your job anywhere, you probably want to lose your job at Société Générale. While other banks piffle around with a couple of weeks' payouts for every year served, SocGen is known for its lavish treatment of everyone it's had enough of. Past payments have been to known to reach €340k.

Following today's announcement of its joint venture with Bernstein Research, there are suspicions that SocGen will soon be bathing its unwanted people in money once again. This time, it's equity researchers at the French bank who could be on the receiving end of the generosity.

There's no mention of job cuts in SocGen's announcement. It says the joint venture will combine, "Bernstein Research Services’ premier global equity research and execution platform with Societe Generale’s equity research and execution capabilities to form a leading global cash equities and equity research business." Slawomir Krupa, the head of SocGen’s investment bank, told the Financial Times that the geographic diversity of the two businesses means that jobs cuts should be minimal: Bernstein is strong in North America and Asia; SocGen is bigger in Europe. 

However, the strong suspicion is that the JV won't need all its combined staff. 

If this is the case, SocGen's equity researchers are likely to come out worse off. As Bernstein itself points out, it's ranked top for European companies and industries for the past 10 years. SocGen's best sector teams, by comparison, ranked 6th, 7th, 9th and 10th this year. Many of those teams are based in Paris, where severance is at its most generous.

"Bernstein has some of the best deep dive research in the market," says one headhunter. "A lot of their people come from the corporates they cover and have excellent insights and a good network. SocGen's research isn't nearly as good."

SocGen didn't respond to a request to comment on the likely implications for its equity researchers. Some may be spared, however: Bernstein doesn't cover some sectors, like real estate. 

SocGen's researchers could also benefit if Bernstein's researchers decide they don't like the JV and look for new jobs elsewhere. However, it's not really clear where they would go now that Exane and Redburn have also been subsumed by larger outfits.

If SocGen's researchers are let go, they could find themselves adrift in an unfriendly market: nearly 20 researchers have been ejected from Credit Suisse in London in recent weeks. However, French banks are notoriously slow to make cuts, so things could have picked up by the time they find themselves sending out CVs. And with payouts that big, they may feel inclined to spend some years on the beach anyway.

Click here to create a profile on eFinancialCareers. Comment ANONYMOUSLY on articles and make yourself visible to recruiters hiring for top jobs in technology and finance. 

Have a confidential story, tip, or comment you’d like to share? Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

Photo: eFinancialCareers/Dall-e

 

 

 

 

author-card-avatar
AUTHORSarah Butcher Global Editor
Cancel

Apply for jobs

Find thousands of jobs in financial services and technology by signing up to eFinancialCareers today.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Jobs
Pearse Partners
Hedge Fund Equity L/S Analyst
Pearse Partners
London, United Kingdom
Capstone Investment Advisors (UK) LLP
2023 Investment Graduate Rotation Program
Capstone Investment Advisors (UK) LLP
London, United Kingdom
Selby Jennings
Managing Director - Investor Relations
Selby Jennings
London, United Kingdom
Selby Jennings
VP/Director Investment Banking
Selby Jennings
London, United Kingdom
ParagonAlpha
Quantitative Developer
ParagonAlpha
London, United Kingdom