How Much Extra To Move Jobs?

That's the conundrum I have been faced with this morning, following another headhunter call. Of course, the salary levels they claim are usually best-case and designed to hook you into taking it further. This one dangled the prospect of an extra £50,000 increase in my base salary if I moved.

However after about 5mins deliberation, the answer is going to be 'no'. It is certainly tempting from one perspective, but one problem is that the bank in question is terrible: without naming names, one of those suffering from merger pains, combined with being incompetently run for years - hence is on government life support and has made huge losses.

Most of all though, there is more to this than just money. Let me just reassure you that there is no loyalty for the bank, or love for the 'unique team culture' - every bank spouts waffle about it being a giant family and that they are the best. Unfortunately the brutal culling of staff in the last year merely illustrated the fallacy to those corporate clones too stupid to see it before.

Working for yourself is the only place to aim for in life. So yes, an extra £50k now would be nice, but the cost is all of the hassle and risk of a new job. When I factor in work on my business ahead of the launch later this year, I realised what is much more important to me. At present I have got time to work on this almost daily, but that could easily change with a new boss on my shoulder, and needing to forge a reputation at a new place.

Anyway it's an interesting question, and highlights to me how my priorities have changed so significantly since I mentally made the jump towards my aspirations being out of the sector.

Although not yet announced, Pershing Square are about to submit a counter-offer on the DIP financing. It is unsurprising because without the innovative equity conversion option they had included as the DIP financier, they lose a valuable hedge against their significant existing holdings. This will be good news for GGP again, as any competition around terms of financing benefits the firm - I am just hoping to see the equity conversion option dropped, but matching the other loan terms with a lower interest rate is a more likely sweetener.

Otherwise Reuters reported last week that Simon Property Group have raised more capital in another significant stock offering. They cite the reason being for "general corporate purposes", but pointedly there is no longer a denial of interest in future acquisitions, just citing timing.

Due to the market saturation (in the US) of mall owners, all of the REIT's need to expand their market shares through acquisitions. As such, and despite denials, Westfield are also lining up to compete with Simon and Vornado (who have openly admitted interest) for any asset sales that GGP decide to put out there.

As with DIP financing, it is much better to have competition in a sale like this. On an unrelated rumour, the Court will reconvene tomorrow to review the DIP financing options and progress further. For now this is a side show to the bigger issue relating to creditors and the SPE inclusions discussed in my last post.

The Price of Advice

With the long Easter weekend now upon us, I am going to use this as an opportunity to plug on with the business plan.  Otherwise though, a quick observation on life at the bank, which has become amazingly boring since I got back from Egypt last month.  It almost feels like the quiet after a hurricane has passed over.. we rats are only poking our noses out of the hiding holes we have been in for essential activity.  

The good news is that, as of last week, all of those I know who have been fired from my bank have now all landed new jobs.  It's a great sign that they have been able to cash in on the ill-justified prestige associated with this place, and secure decent roles even in these tough times.  By chance I had a quick coffee with another headhunter myself mid-week - as I say to all of them, while I am not actively looking, I am always "open to opportunities".

In this case, he spent half an hour ignoring me and pitching a near-identical role to me over at one of the other banks down in Canary Wharf.  I have no desire to increase my commute from West London by another half an hour or more a day, I remember from living down there that Docklands is a gigantic, soulless wind tunnel without any of the charm or benefits of the City.

I explained to him several times that I have no interest in taking the risk of a move to do the same role somewhere else.  As and when I move next (and this is all based on the assumption my web business has not fully taken off by then), I want to use it to make a move into a related but different area.  

A good example was one of the guys on the desk who left last year to join a Venture Capitalist firm - no, not junior trader - he's ended up at that crappy little French bank Calyon, so that hedge fund claim was all bullshit.  Sadly it also means my 10mth punt in the office sweepstake didn't come up.

In one sense I dislike VC's and their predatory, short-termist nature (all they are really interested in is taking a firm to the market as quickly as possible to realise quick returns).  However the entrepreneurial aspects are hugely appealing to me, and his move has made me realise that I do not have to continue with a role that I can do with my eyes closed, and can look to make a move across into something new and fresh going forwards.

Of course, who knows with these times what is or is not possible.  I am a great believer in persistence when told no.  You need to have vision and see opportunities rather than closed doors.  No direct experience in the area?  So what?  I had none in my current role here at the bank when I joined - instead blagging through the countless interviews through a combination of being personable, articulate, some juicy white lies and by not being clueless.  If it worked here, it can work anywhere.

On an unrelated topic, I am going to get up on my soapbox about the quality and impartiality of research reports. I have access to so many as you would expect, and and am constantly amazed by how insubstantial the actual research often is. Whenever I go up to research, those fucking clowns are usually surfing the web - their technique is to cut and paste observations of others before rewording, and otherwise calling up investor relations to get the latest key financial figures to add to their reports.  

The end result looks great, when shoed into a professional research report template.  If ever you needed proof that presentation goes a long way, analyst reports by the banks are it.  The actual content is usually woefully inadequate - weeks behind, or offers little if any meaningful insight and usually regurgitates old news or views.

They almost always go with the mainstream consensus, or safe view as well, rather than even discussing different strategies depending on investor risk tolerance.  A good example is GGP, which naturally is one I know a lot about.  Reports out now do not even consider many of the issues I have discussed on here in their recommendation - just a sweeping generalisation of the REIT market prospects in 2009. 

To anybody who doubts it, believe me that if you take the time to do your own research on any company with information available in the public domain, you can easily put yourself well ahead of those who place their trust in crappy, overpriced analyst reports just because they have a bank's brand name stuck in the top corner.

Itchy Feet

No, I've not got fungal spores growing down there, but I must confess that despite the downturn I have been continuing a quiet look around despite a secure position. There is no real need, besides feeling that I have got everything out of this job that I can - and get called most days by one slimy headhunter or another.

I started looking around in December as a hedge given the uncertainty of my position at the bank. Now, rather than turn down any potential opportunities before they presented themselves, I went along to a final round interview with a fund management group last week, to get a sense of what else is out there on the job front. After the positive reactions from my quick look around, I really don't get a sense I would need to look too hard to find more work.

I know plenty of people who have been out of work now for as much as 18mths now, many of whom are now retraining and looking for a career outside the City. Fair enough, most of them weren't that great in terms of work ethic or skillsets, so perhaps that goes back to why recessions are arguably healthy for the economy in the long term.

When I think of the uncannily accurate stereotype of the modern Essex-boy trader in the City, I think of excessive coinfidence, excessive compensation, and excessive lifestyles - and no sense of understanding the value of money. Many appeared to have all the morals of footballers as they frittered away cash on coke fueled evenings and God knows what else - strip joints seemed to be a favourite from what I can gather of various lewd comments I have heard on the Desk over the years.

Anyway, the interview itself was fairly boring - a final round with a 40-something partner who probably makes more in a month than I do in a year. Unfortunately he spent more time talking about himself than asking any questions, in particular wanting to find out whether there was potential business I could bring in from my current bank. I discounted him and the role within 10mins, despite him starting to lavish praise on me towards the end.

"Well, you're obviously very bright and articulate" he said, beginning his ring-licking closing speech.

"I think with your background and skills you'd make an excellent addition to the group, and I'll be in touch with Helen to arrange to take this further".

I loved the assumption on his part that I must be interested.

It has however made me start to wonder whether a strategic move would be a good idea in around 6mths time. Perhaps even to a bank in the Far East for a while. I have gained about everything that I can from my time here, and change is beneficial despite us naturally shying from it. I think a well-timed hop would reap great rewards. However this one needs to be very carefully timed, so as to not enter at a low base (now crucial), and a role with enough upward potential. Before you wonder, I consider this an aside to mull over while I work on the business plan.. and anyway, I've got a wedding and honeymoon to factor in for later this year..

I'm very much now in holiday mode. It's 2pm and I can't bring myself to get back to the office.. that's right - my previous meeting 'overran'. I don't leave for another couple of days, but am purposely doing as little as possible in the meantime and delegating. I'll be out of here at 6pm tonight on the dot for a change, and need to start planning what to do with L. Two weeks off - what bliss!