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CRE Finance Employment Trends Mimic Market

With debt shops closing on a daily basis, the employment market is flooded with talented executives, only some of which are making the jump to equity or other areas.

By Erika Morphy | Updated on May 11, 2008

NEW YORK CITY-There is precious little good news emanating from Wall Street’s human resource offices these days: with thousands of talented executives and financial engineers being let go quarter after quarter, there are not enough positions open to take them in. Furthermore, financial executives that do hold onto their positions will see a dramatic reduction in bonuses and possible compensation as well.

“Bonuses that were slashed last year could be even worse for 2008 – at least another 20% or more below 2007 levels,” Graham Michener, consultant at Russell Reynolds Associates for its Global Banking and Markets, and Real Estate Practice, tells GlobeSt.com. On average, last year bonuses were down by 40% to 50% last year. For people looking for a job, former CMBS executives are faring the worst right now, he says.

“For them there is a shell shock factor and they are trying to figure out the next step given the demise of this product. I have not seen a lot of professionals out there looking to make drastic changes in their employment – instead they are trying to stay on fringes of CMBS with hopes of rebound. A lot of folks are simply not willing to give up the leverage and credit they have built up over years in the community,” Michener says.

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