What systemic factors within investment banking culture are highlighted by the Centerview lawsuit over mandatory sleep deprivation, and how could regulatory or corporate governance reforms mitigate talent attrition and mental health risks?
The settlement between Centerview Partners and Kathryn Shiber on February 22, 2026—reached on the eve of trial—concludes a lawsuit that exposed foundational contradictions in investment banking's relationship with human capitalInvestment Bank Settles Case That Put 100-Hour Workweeks on Trial - Business Insiderbit +1. While the confidential resolution prevents judicial determination of whether round-the-clock availability constitutes an "essential function" of the analyst role, the case crystallizes systemic failures that extend far beyond one boutique firmElite investment bank settles case that put Wall Street’s 100-hour weeks on trial – DNYUZdnyuz .
Shiber joined Centerview in July 2020 immediately after graduating from Dartmouth College and was assigned to "Project Dragon," an advisory mandate defending Duke Energy against Elliott ManagementCourt will decide if bankers can be fired for needing sleep | Financial Postfinancialpost . After working past midnight for several consecutive days, she disclosed a diagnosed mood and anxiety disorder requiring eight to nine hours of consistent sleep nightlyWall Street Work Culture Going on Trial As Centerview Case Beginsbusinessinsider . Centerview initially implemented a "guardrails" accommodation designed by Tony Kim—now co-president of the firm—excusing her from work between midnight and 9 a.m.Court will decide if bankers can be fired for needing sleep | Financial Postfinancialpost . In exchange, she agreed to remain available every other moment, seven days per weekA court will decide if bankers can be fired for demanding sleepfinancialpost .
Less than three weeks later, Centerview terminated Shiber during a video call, with the Chief Operating Officer reportedly chastising her for accepting an investment banking position given her sleep requirementsA court will decide if bankers can be fired for demanding sleepfinancialpost +1. The firm argued there was "no reasonable accommodation available" for someone requiring eight to nine hours of consistent sleep, asserting that the nine-hour window was intended only as a short-term solutionCourt will decide if bankers can be fired for needing sleep | Financial Postfinancialpost .
Court depositions revealed the structural demands imposed on first-year analysts. Tony Kim testified that weekly workloads range from 60 to 120 hours during active deals, with occasional periods described as "24 hours a day"Wall Street Work Culture Going on Trial As Centerview Case Beginsbusinessinsider +1. He stated that 24-hour days are "possible, but rare," and that juniors staffed on active deals are expected to check in before going to sleepThis lawsuit against Centerview is putting junior bankers' all-nighters ...aol . Federal Judge Edgardo Ramos found a "genuine dispute" about whether round-the-clock availability and long, unpredictable hours are essential functions of the analyst role, noting that Centerview had never formally codified working-hour expectations for junior analystsCourt will decide if bankers can be fired for needing sleep | Financial Postfinancialpost +1.
A particularly revealing detail emerged from court filings: on the same Duke Energy deal, JPMorgan deployed five analysts and seven associates, while Centerview staffed one brand-new analyst, one second-year analyst, and one associate—yet produced comparable deliverablesMy fave excerpt from the CVP analyst lawsuit: "Our co-advisors, JP Morgan produced the same or fewer number of slides for the board deck we were working on, with similar levels of analysis, and had 5 Analysts on their team and 7 Associates" Compared to the one brand new analyst who filed the lawsuit, one 2nd year analyst and one associate on the CVP sidex . This disparity illustrates how lean staffing models at elite boutiques systematically transfer workload pressure onto junior employees.
The Centerview case illuminates a culture where biological necessities are treated as incompatible with professional competence. As disability law professor Katherine Macfarlane observed, it would be "slightly absurd [to be] in court arguing that people have to be available 24 hours a day" given how many people such an expectation would exclude$5 million question: Can bankers be fired for demanding 8 hours of sleep? US court to decide - The Times of Indiaindiatimes .
The Goldman Sachs Working Conditions Survey of February 2021—conducted by 13 first-year analysts in the San Francisco TMT group—quantified the human cost. Respondents reported working an average of 95-98 hours per week and sleeping five hours per nightYoung Goldman Sachs bankers ask for 80-hour week capbbc +1. Before joining Goldman, analysts rated their mental health at 8.8 out of 10; afterward, that figure collapsed to 2.8Young Goldman Sachs bankers ask for 80-hour week capbbc +2. Physical health declined from 9.0 to 2.3Goldman Sachs junior bankers describe 'inhumane' working conditions where they don't have time to eat or shower in a brutal internal surveybusinessinsider +1. All respondents—100%—reported that work hours had negatively affected relationships with family and friendsGoldman Sachs CEO tells junior bankers working 95 hours a week that help is on the way | CNN Businesscnn . Seventy-seven percent said they had been victims of workplace abuse, and 75% had sought or considered mental health counselingGoldman Sachs junior bankers describe 'inhumane' working conditions where they don't have time to eat or shower in a brutal internal surveybusinessinsider +1.
One analyst's comment resonated across media coverage: "The sleep deprivation, the treatment by senior bankers, the mental and physical stress… I've been through foster care and this is arguably worse"Young Goldman Sachs bankers ask for 80-hour week capbbc +1. Another stated bluntly: "What is not ok to me is 110-120 hours over the course of a week! The math is simple, that leaves 4 hours a day for eating, sleeping, showering, bathroom and general transition time. This is beyond the level of 'hard-working', this is inhumane/abuse"Working at Goldman Sachs Suuuucks, Leaked Internal Survey Showsvice +2.
The human toll extends to fatalities. Leo Lukenas III, a 35-year-old former Army Special Forces soldier who joined Bank of America's Financial Institutions Group in 2023, died on May 2, 2024, from "acute coronary artery thrombus"—a blood clot in the heart's arteriesA junior Bank of America associate died—and it's ignited discussions about Wall Street's working conditions | Fortunefortune +1. He had allegedly worked approximately 100-hour weeks for several consecutive weeks while completing a $2 billion bank acquisition, which closed three days before his deathWall Street banker’s death at 35 ignites firestorm over alleged grueling 100-hour work weeksnypost +1. Lukenas had told a recruiter in mid-March 2024 that he intended to leave the bank because of treacherous hoursBank of America is making it harder for junior bankers to lie ... - Fortunefortune .
Two weeks after Lukenas's death, Adnan Deumic, a 25-year-old Bank of America credit portfolio trader in London, collapsed of a suspected cardiac arrest while playing soccer at an industry eventA 25-year-old trader at Bank of America dies suddenly, the second death this month of a young employee at the Wall Street giant | Fortunefortune . In January 2025, Carter McIntosh, a 28-year-old investment banking associate at Jefferies in Dallas, died of a suspected drug overdose while reportedly working up to 100 hours per weekJefferies Technology Banker, Age 28, Dies, Prompting Police Probe - Business Insiderbusinessinsider +1.
Medical research substantiates the link between extended work hours and cardiovascular risk. Sleep deprivation is associated with impaired prefrontal cortex function—the region governing executive decision-making, impulse control, and emotional regulationThe Role of Sleep and the Effects of Sleep Loss on Cognitive, Affective, and Behavioral Processes.nih . Studies show that the amygdala becomes approximately 60% more reactive under conditions of sleep deprivation, while connectivity between the prefrontal cortex and amygdala is severed, leading to heightened emotional reactivity and impaired judgmentHow sleep affects your emotions | Sleeping with Science, a TED seriesyoutube . Total sleep deprivation consistently reduces task-switching accuracy and cognitive flexibilityThe effects of sleep deprivation on cognitive flexibility: a scoping review of outcomes and biological mechanisms.nih . A Cambridge study found that sleep-deprived individuals making financial decisions in the early morning hours exhibit significantly higher default rates on loans—a 2.97 percentage point increase equivalent to 10.5% higher default risk—driven by increased heuristic thinking[PDF] Insufficient Sleep and Intra-Day Financial Decision-Makingcam .
The talent pipeline economics create perverse incentives. Junior analysts reportedly leave investment banks at rates reaching 85% within their first two yearsThe Talent Retention Crisis in Investment Banking: Private Equity's ...ainvest +1. Recruitment and training costs for junior analysts can reach 150% of their salaries, with JPMorgan estimating attrition-related losses exceeding $500 million in 2024 aloneThe Talent Retention Crisis in Investment Banking: Private Equity's ...ainvest . A 2023 Wall Street Oasis survey of banking professionals found first-year analysts working an average of 77 hours weekly while sleeping fewer than 6 hours nightlyA junior Bank of America associate died—and it's ignited discussions about Wall Street's working conditions | Fortunefortune .
Mental health data across the financial sector reflects systemic stress. Research indicates that 81.7% of finance workers have considered quitting due to burnout—the highest rate among all industries surveyedBanking on Balance: The Hidden Mental Health Crisis in Global ...linkedin . A peer-reviewed study of 1,181 finance workers found that 83.54% reported feeling performance pressure at work, with those expressing willingness to achieve results through illegal activities exhibiting significantly higher rates of suicidal ideation (adjusted odds ratio 1.63), suicide plans (aOR 1.75), and suicide attempts (aOR 2.72)Performance pressure and mental health among finance workers in Korea: a cross-sectional study.nih . According to the U.S. Centers for Disease Control and Prevention, sales representatives for financial and business services are 39% more likely than other workforce members to die by suicideMental health issues are becoming more prevalent in the financial ...worldfinance .
Industry observers identify a non-economic rationale for extreme hours. As one commentator noted: "There's no operational reason why junior bankers need to work long hours. They could simply hire more workers but that's beside the point. The point is to 'haze' new recruits, filter out those who don't fit in, and enforce ideology through sleep deprivation"@RenaudFoucart There’s no operational reason why junior bankers need to work long hours. They could simply hire more workers but that’s beside the point. The point is to “haze” new recruits, filter out those who don’t fit in, and enforce ideology through sleep deprivation. Jefferey Epstein.x . The hierarchy operates as a winnowing mechanism where pain tolerance substitutes for professional developmentGoldman junior bankers detail 'crushing' work loadyoutube .
The behavioral dimension reinforces cultural persistence. As one analysis observed: "Junior bankers don't just comply with long hours; they often internalize them as a personal imperative. This is driven by a mix of irrational incentives and cognitive shortcuts that prioritize short-term social signals over long-term well-being"Wall Street's Long Hours: A Trial of Culture, Not Just Complianceainvest .
The United States maintains no federal regulations limiting working hours for white-collar professionals. The Fair Labor Standards Act requires overtime pay after 40 hours but does not cap total hoursEmployee Hours & Overtime Labor Laws - OSHA Education Centeroshaeducationcenter . OSHA maintains no standard regulating extended or unusual shiftsEmployee Hours & Overtime Labor Laws - OSHA Education Centeroshaeducationcenter . Federal law permits employers to require employees to work 16 hours per day or more without breaksIf long hours cause fatigue-related injuries, can OSHA cite you?jjkellersafety .
OSHA can cite employers under the General Duty Clause for hazards "likely to cause death or serious physical harm," and the agency has "issued citations to companies when they ignored the human factor of employee fatigue from excessive overtime"If long hours cause fatigue-related injuries, can OSHA cite you?jjkellersafety +1. However, enforcement in white-collar settings remains effectively nonexistent, as the clause applies to hazards causing "death or serious physical harm"—a standard that fatigue-related cognitive impairment in office environments rarely meets under current enforcement prioritiesIf long hours cause fatigue-related injuries, can OSHA cite you?jjkellersafety .
Neither the SEC nor FINRA maintains regulations governing working hours, mandatory rest periods, or employee welfare standards for investment banking personnelFINRA Requirements for Investment Bankersyoutube . Financial industry regulatory bodies focus exclusively on market conduct, disclosure requirements, and fiduciary standards—not labor conditions.
The European Union Working Time Directive establishes a 48-hour maximum average workweek, with minimum rest periods of 11 consecutive hours per 24-hour periodExporting Services to the EU: A guide for Canadian business - Tradecommissioner.gc.catradecommissioner . However, employees may opt out of the 48-hour limit in writing, and UK data shows 41% of risk professionals in financial services work 50 or more hours weekly despite the directiveWorking hours stretched for risk professionals in financial ...strategic-risk-global . Most banks require employees to sign opt-outs as a condition of employmentMorning Coffee: 23 year-old's method of avoiding long ...efinancialcareers .
Beginning September 1, 2026, the UK Financial Conduct Authority will require over 37,000 regulated firms to report "serious, unsubstantiated poor personal behaviour" including bullying—a requirement previously limited to banks FCA Non-Financial Misconduct: What you need to know | Culture Shiftculture-shift . The regulation explicitly addresses concerns about "toxic work culture, from long gruelling hours, persistent cases of bullying, sexual harassment and discrimination hitting the headlines and more recently the deaths of three young investment bankers prompting concerns about mental health and inhumane working conditions" FCA Non-Financial Misconduct: What you need to know | Culture Shiftculture-shift .
Following Lukenas's death, JPMorgan instituted an 80-hour weekly cap for junior investment bankers—a first for the bank—with exceptions for live dealsJPMorgan just capped junior bankers' hours—at 80 per weekyahoo +1. The bank also created a new role: Ryland McClendon was appointed global investment banking associate and analyst leader, responsible for overseeing "well-being and success" of junior bankersJPMorgan investment bank creates new role overseeing junior bankerscnbc +1. CEO Jamie Dimon outlined enforcement priorities: ensuring accurate hour reporting, training senior bankers to distribute assignments earlier in the week rather than Friday nights, and tying bonus consequences to violationsMeet Ryland McClendon, JPMorgan's New Junior Banker ...businessinsider .
Bank of America implemented a new timekeeping tool requiring junior bankers to log hours daily rather than weekly, specify which deals they are working on, identify supervising senior bankers, and rate their capacity to take on additional work on a 1-4 scaleBank of America is making it harder for junior bankers to lie ... - Fortunefortune +1. This followed a Wall Street Journal investigation finding that BofA junior bankers were "routinely told by their superiors to lie about how many hours they worked in order to skirt restrictions on working hours"Bank of America is making it harder for junior bankers to lie ... - Fortunefortune . Gary Howe, who supervised Lukenas's team, was stripped of oversight responsibilities for the FinTech banking divisionBank of America Under Fire: 100-Hour Work Weeks Allegedly Linked to Employee’s Death Sparking Industry-Wide Scrutinylegalexaminer .
Goldman Sachs and Morgan Stanley maintain no formal hourly limits, though Goldman's "protected Saturday" policy blocks 9 p.m. Friday to 9 p.m. Sunday for junior bankersJPMorgan, Bank of America Set 80 Hour Week Limit: Overworkentrepreneur .
Industry observers express doubt that self-imposed caps will prove effective. An incoming analyst told Business Insider: "My concern is that it won't be enforced, that there will be too many dynamics within the office of not wanting to report to HR if a junior banker is being pressured to work extra hours"Wall Streeters Casts Doubt on New 80-Hour-Week Caps - Business Insiderbusinessinsider . A professor added: "You're not going to change anything with respect to how much managing directors work their analysts unless you change the culture"Wall Streeters Casts Doubt on New 80-Hour-Week Caps - Business Insiderbusinessinsider .
The history of Bank of America's prior policies supports this skepticism. The bank introduced protected weekend policies after a 2013 intern death, yet the 2024 WSJ investigation found systematic circumvention through managerial pressure to falsify timesheetsBank of America is making it harder for junior bankers to lie ... - Fortunefortune +1.
The SEC's 2020 amendment to Regulation S-K Item 101 requires public companies to disclose human capital measures "that the registrant focuses on in managing the business"Five Years of Evolving Form 10-K Human Capital Disclosuresgibsondunn . However, requirements remain principles-based rather than prescriptive, and the Commission's Spring 2025 agenda no longer includes more detailed human capital disclosure rulesFive Years of Evolving Form 10-K Human Capital Disclosuresgibsondunn .
Institutional investors including BlackRock, Vanguard, State Street, CalSTRS, and CalPERS have made human capital management a disclosure priority for yearsHow to Handle "Human Capital Management" Disclosureyoutube . ISS has opened surveys seeking input on whether human capital management metrics—including workforce diversity data, retention rates, and board oversight of human capital issues—warrant shareholder proposal supportISS Opens Survey for 2025 Policy Changes; Glass Lewis Seeks Informal Feedbackharvard .
Mandatory disclosure of analyst turnover rates, average working hours by role, and mental health utilization rates would create market accountability mechanisms currently absent. As State Street Global Advisors noted: "If corporate boards gain a better understanding of employee experience through employee voice mechanisms, they will be more effective in their oversight of the firm's human capital management strategy which we believe drives long term value"The Board's Oversight of Employee Voiceharvard .
Corporate governance frameworks increasingly recognize mental health as a board responsibility. Independent directors can "make a big difference in fostering mental health and emotional well-being at work," including "monitoring, supporting, advocating for, and promoting openness to the mental health and wellness of employees"Mental Health and Corporate Governance: The Board’s Role in Promoting Employee Well-Being directors-institute . A KPMG survey found 90% of directors held substantial board discussions about employee health and safety during COVID-19[PDF] Board oversight of workforce wellbeingkpmg .
HSBC's mindfulness program demonstrates scalable intervention: the initiative has led to a 30% increase in stress resilience and a 50% reduction in error rates within teamsReimagining today's workforce helps banks shape their ...ey . Board compensation committees increasingly tie executive pay to ESG goals including human capital metricsHow Boards Provide ESG Oversightyoutube .
The Centerview case centered on whether Shiber was a "qualified individual" under the ADA—someone who, with or without reasonable accommodation, can perform the essential functions of the position. The Second Circuit's March 2024 decision in Tudor v. Whitehall Central School District clarified that employers must provide reasonable accommodations "even if [the employee] can perform the essential functions of her job without one"Second Circuit: ADA Can Require Accommodation Even When Employee Could Perform Job Without It | Littlerlittler +1.
This precedent shifts the inquiry from whether an accommodation is strictly necessary to whether it is "reasonable and effective" and whether providing it would impose "undue hardship"Second Circuit: ADA Can Require Accommodation Even When Employee Could Perform Job Without It | Littlerlittler . Employers in the Second Circuit—covering New York, where most major banks are headquartered—"can no longer rely upon a per se rule that employees who can perform the essential functions of their position without accommodation are ineligible for required accommodation"Second Circuit: ADA Can Require Accommodation Even When Employee Could Perform Job Without It | Littlerlittler .
The interactive process requirement is critical. Under the ADA, employers must engage in "direct communication between the employer and employee to explore in good faith the possible accommodations". Centerview's argument that extreme hours are essential functions failed to survive summary judgment precisely because the firm "had never formally codified what the working-hour expectations were for junior analysts"Court will decide if bankers can be fired for needing sleep | Financial Postfinancialpost .
While unprecedented, OSHA enforcement targeting investment banking work conditions has legal foundation. The agency's General Duty Clause applies when: (1) an employer failed to address a hazard; (2) the hazard was recognized; (3) the hazard was causing or likely to cause death or serious physical harm; and (4) feasible abatement measures existIf long hours cause fatigue-related injuries, can OSHA cite you?jjkellersafety . With multiple banker deaths linked to overwork, peer-reviewed research establishing cardiovascular risks from sleep deprivation, and demonstrated feasibility of hour caps at major firms, the elements for enforcement may be satisfiedWall Street's Dangerous Grind - Workplace Reformonlabor .
California law already requires employers to engage in a "timely, good faith, interactive process" for disability accommodations and establishes this as a standalone legal requirementReasonable Accommodation | CRD - Civil Rights Departmentca . States could mandate industry-specific working hour disclosures, extend protected rest period requirements to exempt professionals, or create private rights of action for employees injured by fatigue-related working conditions.
The Centerview-JPMorgan staffing disparity on Project Dragon reveals how boutique firms' lean models create unsustainable pressure. Regulatory requirements for disclosing analyst-to-deal ratios, average hours per transaction type, and staffing adequacy assessments would illuminate practices currently hidden from clients, shareholders, and recruitsMy fave excerpt from the CVP analyst lawsuit: "Our co-advisors, JP Morgan produced the same or fewer number of slides for the board deck we were working on, with similar levels of analysis, and had 5 Analysts on their team and 7 Associates" Compared to the one brand new analyst who filed the lawsuit, one 2nd year analyst and one associate on the CVP sidex .
Tying senior banker compensation to subordinate health outcomes creates accountability currently absent. BlackRock has implemented internal policies where failure to achieve diversity and inclusion goals can impact executive compensationThe Institutional Investors engineering our corporate ESG / DEI scores & behaviorsyoutube . Extending this model to include analyst retention rates, working hour compliance, and wellness utilization would align incentives across the hierarchy.
Evidence-based interventions demonstrate feasibility. Mental Health First Aid England found that 83% of finance employees have considered changing jobs due to work's impact on mental healthA junior Bank of America associate died—and it's ignited discussions about Wall Street's working conditions | Fortunefortune . Programs providing confidential counseling, stress management resources, and leadership training on recognizing impairment can reduce both immediate harm and long-term attrition Navigating the Investment Banking Talent Shortage - Financial Edge fe .
Centerview's settlement—reached hours before opening arguments—avoids judicial determination of whether investment banking's extreme hours constitute essential job functions or modifiable cultural normsInvestment Bank Settles Case That Put 100-Hour Workweeks on Trial - Business Insiderbit . A Centerview spokesperson stated the firm was "confident we would have prevailed at trial" but opted to "put this distraction behind us"Investment Bank Settles Case That Put 100-Hour Workweeks on Trial - Business Insiderbit .
The undisclosed settlement terms prevent assessment of how courts would value disability accommodation claims in banking contextsInvestment Bank Settles Case That Put 100-Hour Workweeks on Trialbusinessinsider . However, the settlement itself signals recognition of litigation risk. Industry commentators noted the potential precedent: "If I am burned out, I can get a doctor's note and then ask for an accommodation and start sleeping 8 hours a night. And then what? Will they fire you?"This is just so interesting, so many thoughts: 1) I would never want to be a lawyer, but goddamn, such a cool job. Imagine taking a case that everyone considered a joke and getting millions in settlements for a girl one year out of school. 2) I am shocked Centerview did this. You literally set a disastrous precedent (for the entire industry). If I am burned out, I can get a doctor’s note and then ask for an accommodation and start sleeping 8 hours a night. And then what? Will they fire you? 3) As a result, HR will decide it’s safer not to hire someone who may later request accommodations or speak up about WLB. This will reduce diversity. 4) Even if you have a disability, you should be smart enough to read WSO and understand that working in investment banking does not allow 8 hours of sleep.x .
The case leaves unresolved whether sleep requirements are disabilities warranting accommodation or professional disqualifications. As one legal scholar observed: "It was incredibly unusual for an Americans with Disabilities Act case like Shiber's to reach a jury"—making the settlement simultaneously a missed opportunity for legal clarity and a reflection of how seriously banks now view these claims$5 million question: Can bankers be fired for demanding 8 hours of sleep? US court to decide - The Times of Indiaindiatimes .
The Centerview case exposes a fundamental tension: investment banking has constructed professional identity around practices that peer-reviewed research identifies as physiologically harmful, legally vulnerable, and economically counterproductive. The settlement forestalls judicial resolution but cannot suppress the underlying contradiction between human biology and industry expectations.
Reform pathways exist across multiple domains. Mandatory disclosure of human capital metrics would create market discipline. Board-level accountability for employee wellbeing would align fiduciary duties with stakeholder welfare. Strengthened ADA enforcement would establish that disability accommodation applies even to high-status professions. OSHA enforcement under the General Duty Clause—though unprecedented—has legal foundation where fatigue causes serious physical harm.
The core question remains whether regulatory intervention or continued reputational pressure will prove more effective. Goldman Sachs implemented protected Saturdays after public shaming, not regulatory mandateWall Street's Dangerous Grind - Workplace Reformonlabor . Yet Bank of America's decade of circumvented policies suggests that without external enforcement, voluntary reforms remain vulnerable to the same competitive dynamics that created the crisis.
Investment banking's talent pipeline depends on attracting candidates who will accept extreme conditions for high compensation and exit opportunities. But attrition rates approaching 85% suggest the bargain is breaking downThe Talent Retention Crisis in Investment Banking: Private Equity's ...ainvest . The industry faces a choice: reform working conditions to retain human capital, or continue burning through replaceable labor while bearing the reputational, legal, and occasionally mortal costs. The Centerview settlement offers neither resolution nor absolution—only a temporary silence on questions that Wall Street's own practices have made impossible to avoid.