THE STORY OF PAUL

This is the second story reporting how the market slowdown has impacted the career of a talented and successful professional with specific goals that he cannot achieve now.

Until he was laid off recently, Paul was an Investor Relations agency VP who found his niche through an indirect route, but once connected, realized this field was his calling. Paul controlled his destiny until the second quarter of 2000. He expected to find a corporate job to cap his career and move onto the "A" track. It was not to be.

Here is the path he followed and where he is today.

Paul’s Early Career

Paul was educated at one of the finest schools on the East Coast in preparation for an international relations career. He graduated with honors and spent one year as an undergraduate in Europe at the London School of Economics. Unfortunately, in the early 90’s, the job he sought was simply not available, and Paul was recruited into investment banking. It stuck.

His education and intelligence fit the analyst function and he began a classic track that would lead to a lucrative career as an investment banker and "deal maker." However, he had a strong intellectual bent and reentered academia and a PhD program after three years in the industry. This move says something about his character, willingness to take risk and "think outside the box." It was an important sidebar to his history because he discovered that he was miserable in graduate school. He eliminated that baggage and devoted himself to building a career in business.

Paul was an urban "junkie" and found major East Coast cities tremendously appealing for their pace and diversity. From the outside, it looked like he was leading a "charmed" life -- well educated, on the path to wealth and working in New York as a research analyst for a prestigious, top tier investment banking firm. However, as much as he saw the potential for financial gain along this route he knew that his heart was not in it. He just didn’t have the "thirst for closing deals" as he put it.

The Transition to IR

After seven years of building a successful track record, he instinctively knew it was time to move on -- and he had the good sense to act on that instinct. He was honest with himself and had the courage to leave a traditional path. Money, though important, was not a prime motivator.

Paul had had some exposure to the IR function, but had never seriously considered a career move until he realized he could put his analytical and relationship skills to use, without having to work the 80 to 100 hour weeks that deal making requires. Paul didn’t know then that a classic source of Investor Relations professionals is the analyst community -- well versed in the fundamentals, energized and (for the more junior types) not yet at an astronomical compensation package, so the transition was reasonable.

He contacted Public/Investor Relations agencies in New York and found that virtually every major firm was interested in talking to him. The fit at one top-rated consultancy was excellent and the IR group, solid. Paul immediately jumped in and found he was handling both the communications and Investor Relations programs for Fortune 1000 companies. He was a natural for the field and had both the analytic and creative tools to succeed. His innate intelligence was an asset in this fast paced, sink-or-swim environment. However, this transitional job came to a sudden halt one year later in the late 90’s when one after another client left the firm and the IR team decamped for other professional opportunities.

By now, Paul knew that a career in IR fit him and he quickly moved to another top 10 agency to build upon his first year’s experience. The firm had an impressive roster of Fortune 500 accounts. It was an excellent learning environment and Paul rose quickly to a Director.

Moving to the West Coast

He knew that he was under-compensated but well treated otherwise. Paul felt the experience he was gaining was excellent preparation for solidifying his career -- and well worth the financial tradeoff. He was with the firm for about two years when wanderlust struck and he decided to move to the West Coast to help take companies public. His company footed the bill and he arrived in a major city in the spring of 2000 when the market was red hot.

He was in his office about three weeks when the phone began to ring with calls from business contacts and recruiters all trying to interest him making a change. It was the first time Paul had experienced this pressure. He was tempted to start looking once he realized the premiums being paid IR Directors to join dot coms. I remember talking to him and saying, "give your employer a chance to fix the compensation problem -- otherwise a change would reflect poorly on you." He waited for several weeks and the agency was able to make an adjustment, but it was still below market and Paul knew it. His employer had given him a 20+% raise but the going rate was still 20% higher.

The Boom Time… and the Bust

Paul had hoped to move from his then current employer to a corporation, but he loved being in an urban setting and there were more top-paying agency jobs in this city. He had said he would be open to exploring both corporate and agency positions. Not unexpectedly, another major agency interested in launching an IR department was aggressively poaching talent from local firms. The offer to Paul was at the market rate and reflected a $25,000 increase over his just adjusted salary. In only one year, Paul had jumped his base by 50%. It was now well into the summer of 2000 and the dot-com balloon was beginning to deflate. But agencies hadn’t felt the change and their budgets were still looking solid. Forecasts were still sanguine and management did not see that the train was slowing down.

It was the wrong time to bring on highly paid senior executives to build an IR practice just when budgets were tightening and dot coms were not able to secure funding. Paul was in a vulnerable position and early in 2001, it was clear the department was not breaking even. As recently as the end of January, agencies did not expect the budget cutbacks that hit just a few weeks later. Paul’s employer announced layoffs summarily and he was let go with no severance. It was now mid-late February and Paul began an immediate job search with barely six-months in his most recent job.

His recent track record is spotty. He was brought in to help build a department and couldn’t meet that goal. Paul fears that potential employers will perceive him as a "job hopper." But how much can be accomplished in such a short period of time? How valuable is his experience in deflationary times?

Career Choices in a Shrinking Job Market

Paul would prefer to move to a corporation to better utilize his finance background and knows that a corporate IR position would put his career back on track. However, that may not be an immediate option. He has identified four corporate opportunities and is interviewing for them, but so are other excellent candidates who have corporate experience. (This would be his first corporate opportunity.) He does not know how he compares with the other contenders. One corporate opportunity is with a biotech company that is nearing critical point in the FDA approval process with its initial drug. But the company does not have any analyst coverage and may not have the long-term growth opportunities that Paul seeks. There are just too many uncertainties.

Given how flat agencies are, there is no safe haven. In assessing this picture, Paul is considering the long-term fallout of taking a lateral or high-risk job at a financially shaky company. He recognizes that he would damage his marketability if there were yet another six-month position on his resume.

He will not accept an offer knowing he would not be happy -- that is a sure formula for failure. Money, as it has in the past, is not a prime driver and he could consider a lateral or slightly lower salary without serious consequences. However, Paul should not consider a move that is too junior for him even at an excellent company because he will quickly lose interest. Also, there are no guarantees that he will be promoted despite verbal assurances at the offer stage. I have seen too many situations, where with the best intentions, (non-binding) promises cannot be kept.

Buying Time

Paul has been approached to do high-level freelance IR consulting, arranging roadshows and traveling with senior executives. He is seriously considering this interim work that will allow him the flexibility to continue looking for a good match while earning some income. He can also keep current in his field.

For Paul, this cutback comes at a time when he must make one of the most critical moves of his career. If he can find an excellent corporate opportunity, where he could expect to stay for several years, that would be the best choice. For now, freelance work would give him the time needed to find that match. If this downturn is short term, his talents and experience will be in demand within a few months. Patience to wait until the market turns may be the best strategy overall. We’ll see.