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A Tough Job in a Tough Job Market (BusinessWeek Online):

"Matthew Merrick sure has a keen sense of timing. The Harvard Business School MBA [class of '96] took the reins of his alma mater's career-services office in December, 2001 -- just as the worst MBA job market in years arrived. BusinessWeek Online's Brian Hindo recently spoke with Merrick about his placement experiences in the current tough environment and what he expects to face next year. Following are edited excerpts of their conversation:...

Q: Last year, Harvard placed about 60% of its students in the financial-services and the management-consulting industries. Those are two industries that have really cut back on hiring. How has that changed the dynamics of recruiting this year?

A: Consulting companies took the mid- to upper-30s [percent] of last year's class, and they're going to be in the lower- to mid-20s this year. Students are being more thoughtful and creative in their searches and are looking at other opportunities as well.

The number of general-manager opportunities and marketing opportunities have increased. Last year, about 10% of our students went into general-manager[-type jobs]. This year, the number is 15%. Marketing last year was about 8%. This year it's 12%.

Q: What other industries are hiring?

A: Mid- and large-size [corporations] are picking up some of the slack. And our numbers for venture-capital and private-equity firms won't be dramatically different this year. What has become much more popular is investment management, which is close to 10%, which I think is double last year.

When it comes to functions, I think that marketing [placements] increased by 50% this year, and so did general manager [placements]....

Q: Do you think MBA students have placed too much emphasis on landing consulting and finance jobs, simply because of the big payoff and the prestige?

A: It's a great question. Some people probably argue yes. But look at what those opportunities offer people -- not just compensation, but experience, exposure, association with smart people, a chance to learn about a variety of industries, and having good managers to work for, which we think is real important.

Those are attractive jobs, and they've been very popular with students because they help you in your career over the long run. There are a lot of senior leaders today in Corporate America who came from consulting and investment banking. It's a logical choice if you want to be a leader of an organization -- a really good stepping-stone.

Now, there are lots of other ways to get to the same place. Going directly to work for a big [corporation], and rising through the ranks is another way to do it.

Q: That said, do you feel that the current state of the economy has taken a bit of the luster off finance and consulting?

A: I don't know if I'd say that. I think that just as the venture-capital boom and the entrepreneurial and technology booms were attractive to students, there'll be other opportunities that will be very attractive."

Funds Give Up on 'Best Picks' of Analysts (Reuters):
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Wall Street's high-profile stock analysts once carried so much clout with investors that the leading investment houses proudly built mutual funds around their "best ideas."...

But now, Wall Street faces mounting scrutiny over allegations that juicy bonuses and pressure from executives have driven its analysts to issue overly rosy reports favorable to their firms' banking clients, or potential clients.

Mutual fund firms and other big investors lack those inherent conflicts. Compensation for fund analysts and managers depends largely on their stock-picking ability, not whether they steer profitable investment banking deals to their firms....

The Goldman Sachs Research Select Fund and the Morgan Stanley Competitive Edge "Best Ideas" Fund announced in documents filed with U.S. regulators that they are giving up on their original mandates, depending now on their traditional fund managers and in-house analysts, rather than brokerage analysts.