Nomura loses 20 investment bankers in Asia after bonus payouts

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(Bloomberg) – Nomura Holdings Inc. lost around 20 mostly young investment bankers in Asia after bonus payments in May.

Resignations, all outside of Japan, included Greater China equity chief Alexandra Tong, said people familiar with the matter asked not to be named because the information is private. Tong confirmed her departure. A Nomura spokesman based in Hong Kong declined to comment.

Global banks are struggling to keep young investment bankers in Asia, where financial technology companies and investment firms can provide a path to faster advancement and prospects for higher returns. At Nomura, the fluctuation is comparable to that in previous years after bonus payments, people said. Nevertheless, the departures highlight the acute talent shortage in China and Hong Kong, where the turnover rates of young bankers have roughly doubled at some companies this year.

Read more: Even 30% Salary Raises Can’t Stop The Exodus Of Junior Bankers In Asia (1)

Nomura has also seen the departure of several prominent bankers in Asia in recent months, including head of healthcare investment banking, Vijay Karwal, who became CFO of biopharmaceutical startup AffaMed Therapeutics. Anshul Trivedi, head of the equity consortium for Asian equity markets, left earlier this month.

In an effort to improve its position, the Tokyo-based company recently hired Li Gao to head JPMorgan Chase & Co.’s Hong Kong financial sponsorships, Chinese acquaintances said. Sebastian Jones joined Macquarie Group Ltd. as Executive Director for the technology, media and telecommunications sectors in Singapore. Ashwin Narang has joined the debt team in India.

The investment bank is reviewing candidates for the position left by Karwal and will hire a new group of graduates from the end of July, people said.

Investment banks are raising junior staff salaries and hiring to prevent churn and alleviate long-term dissatisfaction and work-life balance issues during the pandemic.

HSBC, which is in the middle of an important step into Asia, promised a shorter career path for new employees in April and offered promotions after three years instead of four. It also promised to increase pay. The largest Swiss lender, UBS Group AG, has agreed to pay its global bank analysts a one-time bonus of USD 40,000 on their promotion.

© 2021 Bloomberg LP

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