Sidoti & Company

  www.sidoti.com
  www.sidoti.com

Sidoti & Company Reviews

Updated December 17, 2014
Updated December 17, 2014
16 Reviews
1.7
16 Reviews
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Peter T. Sidoti
12 Ratings

Employee Reviews

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  1. 1 person found this helpful  

    Stable , entrepreneurial environment with good benefits and great people.

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Anonymous Employee in New York, NY
    Current Employee - Anonymous Employee in New York, NY

    I have been working at Sidoti & Company full-time (more than 10 years)

    Pros

    Management expectations are clear.
     Resources needed to build profitable long term relationships with the buy side are present and made readily available.
    Bonus fairly reflects employee efforts and firm profitability.

    Success at this firm is not complicated. If you are reasonably intelligent, work hard and do the right thing on a consistent basis you will be recognized and compensated.

    Cons

    A lot effort and time is spent quantifying underperformance in both clients and personnel.
    Not enough time is spent on quantifying the reasons outperformance in clients and personnel.
    Management tends to undervalue client/employee relationships.

    Advice to ManagementAdvice

    Be more outwardly focused on clients and less internally focused employee performance metrics.
    Figure out who your best people are and keep them happy. This will allow you to determine who stays.
    Manage relationships with clients and personnel for the long term.

    Recommends
    Positive Outlook
    Approves of CEO
  2. 4 people found this helpful  

    Glassdoor should create a zero rating just for Sidoti

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Former Employee - Equity Research Analyst in New York, NY
    Former Employee - Equity Research Analyst in New York, NY

    I worked at Sidoti & Company

    Pros

    If you cannot get hired anywhere else, this is your place.

    Cons

    Peter Sidoti is piloting a sinking ship. He realized this a bit late though and is trying to cash out via a very lofty IPO attempt. His plan as he stated to the entire firm: 1. Cut heads 2. Go public 3. Head to Texas to start a "hedge fund" with $3 million dollars. Unfortunately for him, he's driven this company too far into the ground. Equity research is a stagnant industry these days. It doesn't help when your CEO is a man who is more focused on his ego than evolving his business.

    Nobody got a bonus because the company is doing so poorly yet here's how the top did:

    2013 Salary Bonus Other Total
    CEO $840k $840k
    President $300k $720k $1m
    Head trader $250k $550k $800k

    President does nothing. She's paid to create havoc by attempting to scare analysts by berating them. The trading desk is carrying five traders....for NO VOLUME. Peter has said he can't cut any during the layoffs because they will all quit. Gutless.

    From the firm's S-1: "Our ability to retain our professionals and recruit additional professionals is critical to the success of our business, and our failure to do so, the likelihood of which may be higher than for our competitors, may adversely affect our reputation, business, results of operations and financial condition."

    Every. Single. Senior. Analyst. Has. Left.

    Again from the S-1: "We depend on Mr. Sidoti and the loss of his services would have a material adverse effect on us."

    CEO is in poor health.

    We should've seen the writing on the wall when the company stopped providing drinks and then coffee cups to save pennies. He also moved the company into a new office space and signed a month-to-month lease, showing that even he doesn't have confidence in the business.

    Advice to ManagementAdvice

    Start working on a time machine. See if you can get back to when equity research was a relevant part of The Street and cash out when you had the offers.

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO
  3. 6 people found this helpful  

    Peter Sidoti's Biggest Fear Has Been Realized: All of the Talent Has Left the Building

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Former Employee - Research Analyst in New York, NY
    Former Employee - Research Analyst in New York, NY

    I worked at Sidoti & Company full-time (more than 5 years)

    Pros

    If you are down on your luck and you can not get a job anywhere on the street, stop in. Sidoti will welcome you with open arms. I thought it was funny that one of the main qualifying questions was "do you have a driver's license."

    Cons

    The firm has turned over 80% in the past year and a half. The remaining 20% is not the top 20% of the firm.

    ANALYSTS: of the top 20 analysts at the firm (as of just 1 year ago), 17 have already left. At that time, Sidoti had 500+ names under coverage. That list has shrunk to 300. The remaining 3 are seeking to leave.

    SALES: Just 6 months ago, there were 6 regional sales managers. 5 of 6 have left the firm for higher quality shops and making considerably higher pay. The remaining 1 will not be able to get a job anywhere else.

    CEO: All of the reviews that you have read on this site are pretty right on. Instead of re-emphasizing those points, I will give you an anecdote that will provide deep insight. On the 3rd Friday in June of this year, Peter Sidoti stands up in front of the firm after the morning call. I will paraphrase this (and it is pretty close). "Guys, I am pretty pissed of for four reasons this morning. One, yesterday's volume on the desk was nothing to be proud of. Two, I found out this week that a salesman, a person that I treated very well, did his best to delete all of his files before leaving. Three, I went out of my way to keep a micro caps sales guy in a job (salesguy was saved from being layed off when Micro cap was being shut down) and he resigned this morning. And lastly, a female analyst decided to quit and I am really pissed off that I could not fire her first." This is a true story. Here is the best part. The female analyst, who was considered to be a good analyst by research and sales left the firm to be with her mother in South Korea who is dying. What kind of sick person would even say something like this? Nobody respects him. He tries to motivate out of fear only. He is not a leader.

    Advice to ManagementAdvice

    I would say to stop pushing your best people away, but there aren't any good ones left. You have suffered a bit of a break with reality and there is no one around you to keep you in check. Why does everyone leave without saying good bye to you? The answer is pretty simple, you command no respect. You harvest what you reap. If you treat your employees like crap, they will not stick with you.

    Doesn't Recommend
    Negative Outlook
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  5. 6 people found this helpful  

    1 star, at best

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Equity Research Analyst in New York, NY
    Current Employee - Equity Research Analyst in New York, NY

    I have been working at Sidoti & Company full-time (more than 5 years)

    Pros

    Access to c-level mgmt teams and the opportunity to build relationships with PMs (which could hopefully lead to job opportunities)

    Cons

    The CEO is an irrational, stubborn person who cares more about quantity (stocks under coverage) and puffing out his chest to clients than he does about the employees he verbally chides on a weekly basis. Turnover is extremely high and 90% of all the talent has already left; almost solely a result of the CEO's behavior and abuse. Upcoming IPO leaves much to be desired; a veiled attempt of the CEO trying to cash out of a dying business that he single-handedly imploded.

    Advice to ManagementAdvice

    We have good, talented, hard-working people here. Stop treating us like a commodity and then bad mouthing every person that is fortunate enough to get out of here.

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO
  6. 6 people found this helpful  

    Clueless Management, no executable vision

    Current Employee - Anonymous Employee
    Current Employee - Anonymous Employee

    I have been working at Sidoti & Company

    Pros

    None to speak of. Zero.

    Cons

    The owner's narcissism guarantees this company goes nowhere. Senior management doesn't care. Turnover is a religion here. Probably the only independent research company that is more interested in c-level access then the quality of the research. Failed I-banking attempts. Failed Micro-cap research attempts. What's next?

    Advice to ManagementAdvice

    If you can't grow your own small company, stop advising the buy-side on what small-caps they should invest in.

  7. 7 people found this helpful  

    Caveat Emptor

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Equity Research Analyst in New York, NY
    Current Employee - Equity Research Analyst in New York, NY

    I have been working at Sidoti & Company (more than 5 years)

    Pros

    Sidoti & Company used to be a good place to work, where analysts could get a start in the business and see their compensation increase as they ramped up coverage...

    Cons

    ...however, over the past few years the industry has been plagued by lower trading volumes and deflationary trading prices...and in Sidoti's case, incompetent management.

    Employees have been faced with lower bonuses as a direct result of the CEO's ego, longing to be the largest provider of small cap research, despite market conditions and firm profitability. The compensation destruction was accelerated by the CEO's decision to expand into micro cap research without any due diligence done to see how many analysts micro cap commissions could support.

    While the firm has always experienced a high level of turnover, Sidoti was unable to pay a bonus in 1H:14 and now it's SENIOR analysts and sales people are leaving. Although this may reduce costs near-term, the key factor will be the revenue fallout from the departures as clients realize the situation.

    Hard to imagine, but moral has hit a new low following the company's recently filed S-1 (available to the public on the SEC's EDGAR site). While the firm's failures have meaningfully weighed on employee pay, it appears the three listed executives (CEO, Director of Editing and Director of Trading) continue to enjoy high six/low seven figure compensation.

    According to the S-1, Sidoti is looking to raise $35 million of capital for a portion of the company. Brokerage firms tend to trade based on book value ($6 million book for Sidoti), with strong franchises enjoying a premium multiple and weaker firms a discount. Hard to argue for any premium (especially 6x book, which implies 100% of the business for $35 million) given management's track record and a business plan that calls for expansion into the micro cap asset management business without a track record.

    Analysis of the income statement begs the question of whether this firm can even afford to be a public company. The firm netted roughly $800k the past few years, while enjoying a 6% tax rate. Adjusting for a normalized tax rate, a $35 million price tag for 100% of the business yields an 80x P/E multiple based on annualized 1H:14 earnings. Then consider the cost of being a public company, paying board members, etc. Is there any profit left for shareholders??? Doesn't seem like a rosy scenario for you, the prospective employee. Caveat Emptor!

    Advice to ManagementAdvice

    Offering it would be a waste of my time. The CEO is incorrigible.

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO
  8. 8 people found this helpful  

    Barely Wall Street firm, terrible owner/CEO

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Former Employee - Institutional Sales in New York, NY
    Former Employee - Institutional Sales in New York, NY

    I worked at Sidoti & Company full-time (more than 3 years)

    Pros

    You get to travel a lot and being out of the office and in front of clients is the best thing for your career.

    If you are inexperienced, it is a good way to get exposure to buy-side firms and company CEO's/CFO's.

    Cons

    Lowest pay in the industry for both sales and research. Sidoti loyalists will play mind games to convince you every other sell-side firm is similar in commissions and bonuses (theyr're not).

    The research product is a joke, mostly company earnings release and preview notes. Most of the day to day work as an analyst is just checking the box to stay in the good graces of management (Peter). All of the good analysts except 1 have left in the past two years as the bonus pool continues to get cut.

    Sales people are paid a draw and the lowest commission rate on the street. Sidoti also plays this game where you only really get paid on an account if it is brand new money to the firm, or the account is up year over year. If an account pays one dollar less than the year before, the commission to the sales person is cut in half. If you have an account for more than 1yr and it continues to grow, theres a slight reduction in commission amount also, as Peter views the success being due to the firm and not the sales person. Every regional sales manager has quit in the last 6 months.

    Mangagement consists solely of the CEO/owner Peter. He has a couple deputies who carry out his wishes. His behavior is erratic and irrational. He has been known to go on tirades over non-issues and deny employees permission to expense regular business related items.

    Also, if you are in sales and travel a lot, you will be using your own credit card. Expenses will often run into the thousands of dollars, and as it takes time to get reimbursed, Peter Sidoti is effectively using your personal balance sheet to finance his roadshow expenses.

    Advice to ManagementAdvice

    Pay real money to attract real talent, and pay to keep that talent at the firm. The mass exodus of the past year should make that obvious. And stop verbally disparaging good research analysts and sales people who choose to leave to the rest of your staff. That is part of the reason you have a terrible reputation in the industry.

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO
  9.  

    Talented employees, great place to build a career

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Equity Research Analyst in New York, NY
    Current Employee - Equity Research Analyst in New York, NY

    I have been working at Sidoti & Company full-time (more than 5 years)

    Pros

    This is a great firm to build a career. As an analyst, you have freedom to build your own coverage universe; the director of research allows analysts to choose their own stocks to cover. You are encouraged to travel around the country to meet with CEO's / CFO's / tour the facilities of companies under coverage- which is an excellent opportunity to gain in-depth knowledge of companies and build relationships. The employees are talented and experienced; the firm only hires analysts with extensive wall street experience. Many of wall streets top funds ($1B-$300B+ AUM) are clients of Sidoti and ALL small-cap focused funds on the street recognize the firm as the industry leader in sell-side small-cap stock research. Analysts have unparalleled exposure to buy-side portfolio managers at an early stage of their careers and are welcomed to travel on roadshows / marketing days with management teams and meet with institutional investors at will. Analysts are also encouraged to regularly attend analyst days for stocks under coverage and are sponsored by the firm to take the series 7, 63, 86 and 87 exams. Management is very hands-off which means that analysts control their own schedule, coverage universe and work schedule. Considering the great work / life balance, salaries are considerably high for those employees who work hard and run a successful coverage universe compared to other research shops and investment banks on the street. On a typical day, you may be tracking earnings results, researching new investment ideas, or briefing fund managers on breaking news. Analysts have opportunities to present investment ideas to the sales force and interact with institutional investors on a daily basis. Sidoti is the perfect firm for anyone who is ambitious, hard-working, hungry, motivated, driven and loves to be in the middle of wall-street action.

    Cons

    Management team is ineffective at tapping into the tremendous talent and experience of employees at the firm.

    Advice to ManagementAdvice

    Listen to employees. Embrace change. Create incentives to retain your most talented employees. Fill management positions with experienced analysts at the firm. Peter Sidoti must be willing to delegate decision making responsibilities and listen to senior analysts.

    Recommends
    Positive Outlook
    Disapproves of CEO
  10. 4 people found this helpful  

    Avoid at all costs. Lousy pay. Lousy benefits. Lousy company.

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Equity Research Analyst in New York, NY
    Current Employee - Equity Research Analyst in New York, NY

    I have been working at Sidoti & Company full-time (more than 8 years)

    Pros

    The only positive of working here is that you make your own schedule. Once you're settled in, and if you have half of a brain, you don't even have to show up most days. God forbid one of your companies makes an acquisition, you take a quick cab ride to the office.

    Cons

    This is glorified investor relations work. Other shops don't have all of this nonsense maintenance work. The work here provides no value. Peter will tell you what you need to do to get x amount for bonus. Once you meet all of the requirements, he'll make something up out of the blue to explain why you're only getting half of x. The people here are miserable. People ask you if you're any closer to getting out every time you step foot in the kitchen or bathroom. On top of the mind-numbing busy work and miserable atmosphere, this place is going down the tubes. The company just went through big layoffs and will probably cut more. Many people are jumping ship as well.

    Stay away from a sales position here, too. The firm has the lowest commission on the Street and all they do is log fake calls all day when they are in the office. When out of the office, they are glorified chauffeurs, just driving management to meetings.

    Any positive review of this company was probably scripted from Peter himself and handed to someone to enter.

    Advice to ManagementAdvice

    Treat your employees like humans and stop lying to them. You have the worst reputation on Wall Street, despite of what you think of yourself.

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO
  11. 4 people found this helpful  

    stay away

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Culture & Values
    • Career Opportunities
    Current Employee - Equity Research Analyst in New York, NY
    Current Employee - Equity Research Analyst in New York, NY

    I have been working at Sidoti & Company full-time (more than an year)

    Pros

    it is a paycheck - albeit meager - and will gain you experience when no other door will open

    Cons

    it is soul-sucking, feedback is 95% negative, goalposts are constantly moved, and employees are publicly and privately humiliated regularly

    Advice to ManagementAdvice

    change everything about your management approach

    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO

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