And now for you nostalgia buffs, an artifact of the Ancien Regime.

Here we have a very young recruit to Salomon Smith Barney’s Investment Banking Division, barely 23, telling his bosses how they need to get on the stick and give the SSB kids the same favors and freebies that their ex-classmates at Lehman and Goldman Sachs are getting. Unlimited expense accounts, no responsibility for T&E reports, and free black-limo rides to work are some of these routine perquisites.

This Paul Leung, an Oriental who had gone to Stuyvesant and Cornell, had been working for SSB for less than a year. Nevertheless his aggressive advice spooked Managing Director Hans (“Harry Potter”) Morris, and soon led to one of the most diastrously morale-sapping innovations of the era: the non-stop casual-dress policy. No longer would suits and ties be de rigeur Mondays through Thursdays, let alone Mondays through Friday. The new uniform would be Dockers and golf shirts, or…whatever. But no jeans or cutoffs, please.

The Age of the Slob was now in full flower. But it would not last long. The economic downturns of 2000-2002 put a brake on any further loosening-up. SSB axed a quarter of its Investment Banking department and jobs were suddenly hard to get. By 2004 the suit was back, even on Fridays.

And here we go. The following text was copied from a now-defunct website seven or eight years ago. Read contemporary commentary on it here in the New York Observer.

The Brutal Salomon Memo
By: Paul Leung, Analyst

Editor’s Note: Salomon Smith Barney (April 2000), puzzled by the significant turnover of analysts, asked Paul Leung, a young analyst himself, to compile a list of analyst concerns in an effort to reverse the problem.
The following is a copy of that list, now famously known as the “Brutal Salomon Memo” (April 3, 2000). In the days following its circulation, someone “leaked” the memo to the media, resulting in front page coverage by the New York Times, The Wall Street Journal, The New York Post, and given mention by every major financial news outlet. Paul Leung has graciously allowed JamesSong.com to reprint the memo for the benefit of our readers and the interested public.

Ed,

The following e-mail is the compiled list of analyst concerns/suggestions regarding quality of life and employment issues. This list was put together in response to concerns related to the record number of departures of analysts within the past year. We feel it is in everyone’s best interests to address this issue before it becomes even more serious than it already is. We are addressing this issue because frankly, senior management and firm management seem to be ignoring this problem, perhaps thinking it will go away. The fact of the matter is that the number of analysts that have left in recent months has been increasing, and after bonuses are given, even more will probably leave unless something is done. Management does not seem to be taking the issue seriously, and is so far removed, that they seem either ignorant or indifferent to the underlying factors/problems that are driving analysts to leave Salomon Smith Barney. While much of this attrition can be attributed to the New Economy opportunities that have emerged and anre pulling analysts away from SSB, one must understand the push factors that are internal to SSB that drive analysts to seek these opportunities. To this end, we have attached the following list. As we discussed previously, other staffers, Howard Goodman and HR personnel should be made aware of this and the issues need to be addressed. As you can see, the items listed below span across a variety of arenas. We recognize that some changes would be more feasible than others, but we have elected to include all suggestions, in order to give a fair indication of the issues that affect us. From reading the following list, one can extrapolate certain recurring themes that are prevalent among analyst concerns. Chief among them seem to be:

General Disrespect of Analysts – This happens within the group and from a firm management level. Oftentimes, senior officers and associates view analysts as nothing more than “resources” to be used and abused as they see fit. While we understand that as analysts, we have extraordinary responsibilities, our efforts are often unappreciated and our input is often ignored. Too many times have analysts in this group heard “I’m not doing this. That’s analyst work.”

Another analyst has been referred to as a “contractor who is here for two years” and therefore does not deserve the same amenities that are due to “real” employees. Moreover, officers sometimes have no regard for the personal lives of analysts, paging them to come in to send a fax, calling them at home to do formatting edits, and most often, asking for work to be completed overnight when it is not necessarily needed that early.

In addition, from a firm management perspective, analysts are viewed as second-class citizens though they often take on first-class responsibilities. For example, analysts are often asked to incur extraordinary expenses on roadshows and travel. Yet to be reimbursed for these expenses is an incredible hassle, often delayed by months. We find this illogical and unfair, given that analysts have the deepest financial concerns. In general, the general perception of analysts as inferior creatures only invites further abuses. Other examples are given below.

Learning – while it is often said that we only process, and don’t see the big picture, this is a direct result of senior officers keeping us out of the loop and constantly working us to the point where we simply do not have the time to step back and understand what we a re doing and learn. It is perhaps one of the most misrepresented things about banking, that people have a vested interest in your learning. Very few officers take the time to explain something or tell you why we are doing what we’re doing. Moreover, few officers take the time to talk to you unless they want something. To this end, there is no team building, career development, nor cooperative work atmosphere. We’d like to stress that the following list is just a few examples of what could be done, but the major factor behind it all is the need to review how this firm treats its analysts, and a need to understand that analysts are indeed resources, but should be valued resources.

1. Laptops – Analysts at many competing firms, and many lesser firms, have laptops issued to them by the company that has network, dial-up access. This makes travel and working from home much easier. It is also not a good sign to clients at drafting sessions when these other banks have laptops and are doing research or checking e-mail, and we are forced to call our assistants for information or faxes because we are unable to print directly from a laptop. M and A is getting laptops apparently. Examples – Goldman, Banc of America, William Blair, DLJ, SG Cowen.

2. Casual Attire – Many other banks have gone from casual Friday in the summer to casual summer to casual Friday year round to casual year-round. We are still at step 1. Even one casual day a week would be a start. JP Morgan, Morgan Stanley, Goldman Sachs, etc. are casual 24-7. Update: DLJ went casual on March 1st, 2000.

3. Expense Reimbursement – Turnaround time is slow, especially on travel items, making it very difficult to manage personal expenses.

4. Weekend Vouchers – We do not know of any other firm that has pre-printed vouchers. It is a big hassle to have to pay to come to work on the weekends.

5. Expense Flexibility – Allowing analysts to expense things like toothbrushes, underwear and personal items when travelling.

6. Associates should be coached on what to expect from analysts, be it too little or too much, and that as an associate they should not consider certain work “above” them.

7. Senior officers should have to spend five minutes per week educating one analyst. At the weekly meeting, one analyst should be pointed to and asked what he learned last week and who from.

8. Having to apply to get supplies is inefficient and wastes time. Analysts often need supplies at night and now have no access to them.

9. Emergency write-in car vouchers for times when analysts need to send packages and don’t have a pre-printed voucher. Sending books to multiple locations can cost hundreds of dollars. Old Salomon Brothers policy allowed analysts to obtain package vouchers from security.

10. Dinner Allowances Should be Raised – Many other firms don’t even require receipts. Morgan Stanley gives $25, and perhaps $50 on weekends. In addition, allowing us to spend the weekend stipend on one meal if we so choose, rather than a $20 per meal cap. What’s the difference?

11. In light of all the recent departures, management should be made aware of this, understand that our group is not immune to this, and should be asked to be more considerate of analysts.

12. Analyst Outings – Total since first years have arrived = 0.

13. Discussing the analyst situation at the March 28th meeting.

14. Senior Management needs to keep analysts more in the loop as opposed to simply talking to analysts regarding task-specific items. We would like to see the bigger picture.

15. More analysts – from Schroder’s perhaps?

16. True Corporate Cards, where the analyst never sees the bill, especially to be used when traveling. Goldman does this. To make a point, INTERNS at Lehman get their own credit cards and never see the bill.

17. Corporate Cards that allow you the full benefits of the credit card, i.e. allowing you to accumulate rewards points, cash back, etc.

18. After pulling an all-nighter and wanting to leave in the afternoon, we must get MD approval for a car voucher. The response has always been that the firm cannot send analysts home in the afternoon. We find this inefficient and a hassle after a night and morning of intense work.

19. Cellular phones – CSFB and virtually all other firms fully or at least partially reimburse for cell phone purchases and bills.

20. Petty Cash Fund – Goldman gives their analysts petty cash before leaving on a trip. Travel can, in general, become very expensive, and the reimbursement policies are horrible.

21. More analyst assistants.

22. Friday Staffing – Senior Officers should be made aware of the implications for analysts of improper prior planning.

23. Internal Memos – less emphasis. Most other banks have less. Clearly, the firm probably will not reduce the number of memos, but perhaps we can thin them down a little, telling officers that we do not need to rewrite the prospectus and throw in the kitchen sink into a commitment committee memo.

24. Friday Staffing Rotation – M&A divides their analysts into 3 groups that rotate on a weekly basis. Each group is “on call” and if any project comes up after 12pm, that group is responsible for staffing.

32. Fewer Internal Projects – This group seems to do more internal studies than others – examples – Data Tel. and ISP Weekly updates, the IT Book, the New M&A IT Book, the recently concluded Internet Project, the B2B prject, the Cash EPS project and the consistent analysis of research coverage at OTHER banks. While we recognize that these are important, it is difficult to be responsible for the study fo technology across the bank, as it covers so many industries.

33. Investment Restrictions – the 60 day rule. Most banks are 30 days.

34. A better messenger service, with more than 2 IBD runners to help us deliver things like institutional books and committee memos.

35. Opening the Gym on weekends. This prevents analysts from having to pay for two gym memberships, when more than likely they are

36. Analysts should be allowed to more easily invest in deals. This would make people have more incentive.