Investment bank Nomura loses 20 bankers in Asia after bonus payout in May

Nomura Holdings Inc. lost about 20 mostly junior investment bankers in Asia after bonus payouts in May, adding to a stream of departures from Japan’s biggest brokerage as financial firms vie for talent in the fast-expanding region.

The resignations, which all were outside of Japan, include the head of Greater China equity capital markets, Alexandra Tong, said people familiar with the matter, who asked not to be named because the information is private. Tong confirmed her departure. A Hong Kong-based spokesman for Nomura declined to comment.

Global banks are battling to keep junior investment bankers in Asia where financial technology firm and investment companies can offer a route to faster promotion and the prospects for higher earnings. At Nomura, the attrition was comparable to that in the previous years after bonus payouts, the people said. Still, the departures highlight the acute talent shortage in China and Hong Kong, where attrition rates this year of junior bankers has roughly doubled at some firms.

Nomura has also seen the departure of several prominent bankers in Asia over the past months, including the head of health care investment banking, Vijay Karwal, who became the chief financial officer for biopharmaceutical startup AffaMed Therapeutics. Anshul Trivedi, head of Asia equity capital markets syndicate, left earlier this month.

To boost its ranks, the Tokyo-based firm recently hired Li Gao as head of China financial sponsors in Hong Kong from JPMorgan Chase & Co., people familiar said. Sebastian Jones joined as an executive director for the technology, media and telecommunications sector in Singapore from Macquarie Group Ltd. Ashwin Narang was hired for the debt team in India.

The investment bank is reviewing candidates for the position left by Karwal, and will have a new group of graduate hires starting in late July, the people said.

Investment banks are raising pay for junior employees and adding staff to prevent defections and ease discontent over long hours and work-life balance issues during the pandemic.

HSBC, which is in a midst of a major pivot to Asia, in April promised a shorter career path for new associates, offering promotions after three years instead of four. It also pledged to boost pay. Switzerland’s largest lender UBS Group AG has agreed to pay a $40,000 one-time bonus to its global banking analysts when they are promoted.