If you can be bought off in your late 20s for a chunky six figures, you’ve made your choice – it’s no good talking about work-life balance or ESG principles ten years later: people will just assume you’re asking to be bought off for seven figures. That message is that the stuff about sleep and disrespectful bosses and family time was mainly for show. If Apollo are sharing the wealth, should we be looking for more generous accruals in the Q1 accounts?īut most importantly of all, the money sends a message to the employees who take it. There’s been a tension in the industry since the 2020 bonus pools were announced, as CEOs across the industry were trying to tell one audience that business had never been better, but tell another audience who read the same newspapers to look forward to a mediocre payout. It also puts a bit of pressure on private equity competitors who might have significantly larger associate classes and who might have made promises about cost-cutting to their shareholders. It’s easy to say how great business is and to give enthusiastic interviews about the volume of business, but being able to deal with your junior staff problems by chucking a few million dollars at them is a significantly more credible signal. It’s interesting nonetheless that Apollo have offered money, rather than more weekend protection, shorter pitch books, Peloton bikes or a really special mindfulness podcast. Presumably they’re taking the opportunity to have a “we really care” conversation, as it seemed that a lot of the problem was not so much the physical discomfort as the growing sense among the associates that nobody respected their time. That might mean that they’re focusing it on people they want to keep, or it might mean that the program is being rolled out progressively – it appears that Matt Nord and David Sambur, the co-heads of private equity, are making the phone calls personally. It seems that after a bit of due diligence, they’ve conceded that there is an actual problem, and they were at risk of losing people they wanted to keep.Īccording to insiders, not all the associates have been offered the money - or at least, not yet. Then, the Apollo top brass were blustering that “some of the ones who resigned were underperformers” and making convoluted calculations to try and show that turnover was not out of the ordinary. The pay rises mark a change of tone on last week. I don't care how much you pay me.'" Nonetheless, the firm seems to have doubled down on pay under new CEO Marc Rowan: first year associates who were previously paid $450k, will now get $550k instead. One former associate told Business Insider he'd reached the conclusion that the lifestyle was just too toxic: "I thought, 'I don't want to be spending my time doing this. Apollo's associate departures didn't seem to be about a lack of money.
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