Add investment banking to the list of things that could be dangerous to your health.
A University of Southern California researcher found insomnia, alcoholism, heart palpitations, eating disorders and an explosive temper in some of the roughly two dozen entry-level investment bankers she shadowed fresh out of business school.
Every individual she observed over a decade developed a stress-related physical or emotional ailment within several years on the job, she says in a study to be published this month.
Investment banking has long been a beacon for ambitious people who crave competition, big money, steak dinners and paid-for town-car service. The 100-hour workweek, these ironmen and ironwomen tell themselves, is just the opening ante in a high-stakes game.
But investment bankers, salespeople and traders are only human. Under the immense stress of their jobs, many suffer personal and emotional problems that escalate into full-blown crises, with some bankers developing conditions that linger long after they have left the industry.
Of course, no one is being drafted into high finance. Aspiring Wall Street stars sign up for the punishing hours with eyes open. What’s more, the study’s small size and the lack of a control group raise questions about how closely the findings apply to the broader population of roughly 267,000 would-be masters of the universe.
The USC study began a decade ago at two Wall Street banks that granted access on the condition they remain anonymous. The study will be published in the next issue of the Administrative Science Quarterly, due out later this month.
During their first two years, the bankers worked on average 80 to 120 hours a week, but remained eager and energetic, she says. They typically arrived at 6:00am and left around midnight.
By the fourth year, however, many bankers were a mess, according to the study. Some were sleep-deprived, blaming their bodies for preventing them from finishing their work. Others developed allergies and substance addictions. Still others were diagnosed with long-term health conditions such as Crohn’s disease, psoriasis, rheumatoid arthritis and thyroid disorders.
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