Talent Bank

Walk onto a business-school campus during recruiting season, and you will see lots of junior executives from banks, consulting firms, and the like -- all trying to woo candidates. But Thomas Weisel Partners LLC, one of the fastest-growing investment banks, does things differently. Its founder and CEO, 59-year-old Thomas Weisel -- the founder and the former chairman and CEO of Montgomery Securities -- comes to campus himself and dines with potential recruits. Yes, there are lots of things that a powerful CEO like Weisel could be doing back at the office instead. But in the long run, he says, there's nothing more important than attracting good talent to his firm.

So far, that hands-on approach has paid off spectacularly. Although Weisel Partners is just two years old, the San Francisco merchant bank has grown to nearly 800 employees and boasts a steadily rising profile in the hotly competitive world of high-tech investment banking. It has participated in public offerings for such fast-growing firms as Akamai Technologies, Art Technology Group, and RealNetworks. In the first nine months of 2000, it broke into Wall Street's top-10 rankings for high-tech merger advice -- displacing a flurry of much older firms.

Most striking of all, in the money-mad world of investment banking, Weisel Partners has recruited top talent without throwing its cash around. "We aren't looking for people who are just trying to take the last nickel when they come in the door," Weisel says. His firm's biggest selling points: a fast-growth culture, potent teamwork, and the chance for people at his firm to be part-owners in both the investment bank itself and in some of the most promising young high-tech companies that Thomas Weisel Partners advises.

That package is alluring enough that the firm's partners work for guaranteed salaries of only $60,000 a year -- with the expectation that if they turn in a good year, their compensation can rocket to $500,000 or more. In an interview with Fast Company, Weisel talked about his firm's approach to recruiting and about what it takes to get the best people in your industry working on your team.

Who's responsible for recruiting at your firm?

Everyone is. You're only as good as your people, and the war for talent is intense. It's in everybody's interest to recruit the absolute best. And that's why, at all levels of our organization, people are expected to go out on the front lines and identify the people who should be working here.

The best way to make that attitude stick is to lead by example. I visit the Harvard and Stanford campuses every year. I initiate our presentations to students -- but I make sure that other partners are involved too. It's important for candidates to see more than one person from the firm. Then I'll do an awful lot of recruiting, either dinners or cocktail hours or lunches, with smaller groups of students. Once candidates come here, and come back for second, third, and fourth rounds of interviews, then I'll sit down with them one-on-one.

Isn't it easier to let headhunters do the work for you?

We didn't use any headhunters at all during this firm's first two years. Most of us know who the quality people are. We've been around the business for 35 years, so it shouldn't be too difficult. And if you don't know who the top people are, then you should at least know how to find them. Say you're looking to hire a research analyst in a certain industry. The best way to do that is to pick up the phone and call five of your smartest clients -- portfolio managers that invest in that space. Just ask them for the top-three analysts in their area. Then go out and get those analysts. And keep your eyes open as you compete with other firms.

In this competitive job market, where talented people can get job offers from a dozen companies, why should the good ones decide to work for you? What are your best selling points?

We've got a very clear strategic position in the marketplace. We specialize in the hypergrowth areas of transformation in this economy. Having a clear mission statement -- and having a track record that backs it up -- counts for a lot. We've got strong leadership and a positive culture. People generally have fun working here.

We're competitive on current compensation, but what really makes us stand out are our equity-incentive programs. If you come in as a partner, you'll be part of a group that owns much of the firm. We also have allocated roughly 10% of the enterprise for all employees below partner level. In our opinion, you build real wealth by getting a stake in the enterprise. You pay very high tax rates on ordinary income, and after you've paid your living expenses, there isn't a lot left over.