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My Biggest Career Mistake to Date: Prestige
 

bankerella's picture
IB
(King Kong, 1,866
 
Points)
 on 5/22/13 at 10:30pm
intro1.jpg

Mod note: Best of Bankerella - this was originally posted 10/1/12

I occasionally get PMed by people at colleges I’ve never heard of before, asking if they have a shot at IBD.

Folks, why IBD? The finance world is broad and varied, and there are a million ways to make a buck. Why pick the one that’s going to be hardest for you in your situation? There are mutual fund companies, asset management companies all over the damn place. Hedge funds. Auxiliary businesses. Those folks will look beyond the name of your institution and your GPA in the hunt for quality. Why knock on the door of the one section of the industry that has built a massive recruiting machine designed to keep you out?

Time for me to share what is potentially the biggest career mistake of my life.

I’d been working for a small asset management company (~40 employees) during the school year in undergrad to pick up some spare dough. Reasonably laid-back place. Kind of place that’s run by a bunch of guys from state schools and hires all sorts of strange people.

So I get a full time offer from the bulge bracket I’ve been angling for. I go to the owner of the little asset management shop I’ve been working at and say:

“Hey, [BB] offered me a full-time IBD analyst role. I like it here and the idea of moving to New York is not a big plus. What can you offer?”

Guy thinks about it.

“Okay, what are they gonna pay you?”

I say,

“$55k salary and about the same bonus”

Guy says,

“Like hell they will. You got no control over that bonus.”

I say,

“I’ll take my chances.”

Guy thinks it over. Says,

“Okay, kid. I like what you’ve done for me so far. I’ll pay you $75k.”

I say,

“What’s the bonus?”

Guy says,

“Kid, that’s $75 guaranteed comp. I’ll give you the same $5k bonus I give everyone else out of undergrad at the end of the year. And I’ll let you buy an equity stake, up to a tenth of a percent. Now that’s an offer I’ve never made any kid out of undergrad.”

I say,

“I just told you I’m gonna make $110 next year in New York.”

He says,

“New York? You’re crazy, kid. You’re gonna starve on $110 in New York. You work for me, you’ll be in the same place financially in five years you would have been in New York , maybe better. Run the numbers. You stay here, you don’t pay $2k in rent, you don’t work 100 hours a week. In five years you’ll be running your own chunk of the business. No bullshitting with clients or kissing banker ass. Sky’s the limit on how much you can make.”

I say,

“Well, I’m gonna be a managing director some day.”

Guy says,

“You could also run this shop some day and do better than 90% of the managing directors at that shitty bank."

I folded my arms and waited....

Guy says,

"I’m done here. I just made you an offer that in my opinion is ridiculous for a kid still finishing up her senior year and I’m already starting to regret it. You want to go chase the name, go chase the name. Get outta here. I assume you’ll let me know if you want to work for me.”

I walked out. And I signed the bulge bracket IBD offer.

And honestly, I did it because I didn’t understand the way the world worked. I didn’t believe that some crazy guy from the middle of nowhere with a no-name education could build me as solid a career as the hallowed bulge bracket bank. I was worried he’d be out of business in a couple years. I wanted people to recognize the name of the firm I worked for. I wanted to be able to go to HBS. I wanted to do big deals that landed on the front page of the WSJ. (Ironically, my deals have had a history of never front-paging unless they die a grisly death and the front page is the death notice.)

That’s not to say I’m displeased with how my career has unfolded, and of course, the ride would have been bumpy either way. Just saying the decision itself was based on shoddy assumptions.

A better decision metric would have been: Fuck prestige, get money.

See my other WSO blog posts
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Comments

SlikRick's picture

You have an uncanny knack at

CO
 
Points)
 on 10/1/12 at 3:52pm

You have an uncanny knack at negotiating. A college senior getting an equity share out of undergrad? Jesus...

AndyLouis's picture

SlikRick: You have an uncanny

 
Points)
 on 10/1/12 at 3:54pm
SlikRick:

You have an uncanny knack at negotiating. A college senior getting an equity share out of undergrad? Jesus...

I bet b'rella was negotiating equity shares as early as 5th grade...

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Frieds's picture

bankerella: Fuck prestige,

AM
(Neanderthal, 2,530
 
Points)
 on 10/1/12 at 3:56pm
bankerella:

Fuck prestige, get money.

Damn Straight! There is eloquence in simplicity. Prestige is a fucking joke. It's some sense of keeping up with the Jones that we all want to do. Once you realize you don't need prestige, your better of. It makes it easier for you to focus on everything else that's important.

ladubs111's picture

Why capitalize Chase in your

IA
 
Points)
 on 10/1/12 at 4:02pm

Why capitalize Chase in your post unless your too used to capitalizing JP Morgan Chase on all your documents. hmmm.. slip up or innocent mistake.

DonVon's picture

ladubs111: Why capitalize

IB
(King Kong, 1,914
 
Points)
 on 10/1/12 at 4:04pm
ladubs111:

Why capitalize Chase in your post unless your too used to capitalizing JP Morgan Chase on all your documents. hmmm.. slip up or innocent mistake.

WSO automatically capitalizes Chase under certain circumstances to link to company page.

"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower

Check out my blog!

Tommy Too-toned's picture

You should be a lawyer

(Gorilla, 505
 
Points)
 on 10/1/12 at 4:04pm

You should be a lawyer Bankerella, you sound like that lady with the short hair who defends all those famous women...

Sandhurst's picture

Great point. The sooner we

IB
(King Kong, 1,242
 
Points)
 on 10/1/12 at 4:05pm

Great point.

The sooner we stop fucking around, and call it "Vanity," the better. That's all it is, and the sooner anyone gets that through his head, the sooner will be successful.

"There are three ways to make a living in this business: be first, be smarter, or cheat."

In The Flesh's picture

Thanks for sharing...no

HF
(Neanderthal, 2,812
 
Points)
 on 10/1/12 at 4:05pm

Thanks for sharing...no offense, but would this story go under your "douchiest moments" thread?

Head of Metal Website: www.headofmetal.com

https://twitter.com/headofmetal2012

BTbanker's picture

Come on guys. We're all

IB
 
Points)
 on 10/1/12 at 4:07pm

Come on guys. We're all victim to prestige, and when we fail, we just say, "Oh it wasn't that important to me anyways." Every thing we do is based on what other people will think of us. Am I the only one that would rather sacrifice years of my life to build my own wealth than win the Power Ball?

"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan

Frieds's picture

Tommy Too-toned: You should

AM
(Neanderthal, 2,530
 
Points)
 on 10/1/12 at 4:08pm
Tommy Too-toned:

You should be a lawyer Bankerella, you sound like that lady with the short hair who defends all those famous women...

Gloria Allred?

TheLastCall's picture

I'm not at all convinced that

(Baboon, 134
 
Points)
 on 10/1/12 at 4:11pm

I'm not at all convinced that you made the wrong decision. You probably came across as entitled and arrogant, but for the first job out of college, you want to pick the one that gives you the most opportunities going forward. I actually think the first post-college job sets the stage for the rest of your career and could really mess you up if you can't get the right job. For instance, knowing what i know now,i gladly would take MBB consulting out of college rather than a job for a no-name firm that pays me 2 or 3 times as much.

UFOinsider's picture

bankerella: Fuck prestige,

O
(Human, 10,349
 
Points)
 on 10/1/12 at 4:13pm
bankerella:

Fuck prestige, get money

FUCK YOU, PAY ME -> about the same?

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

Heist's picture

I applaud you for taking off.

(Baboon, 131
 
Points)
 on 10/1/12 at 4:13pm

I applaud you for taking off. Even if it wasn't the right move in retrospect, at least you won't think back on what could have been.

Spot on with the investment banker analysis too. There are wayyyy to many fish in the sea for talented, educated people.

Sandhurst's picture

BTbanker: Am I the only one

IB
(King Kong, 1,242
 
Points)
 on 10/1/12 at 4:25pm
BTbanker:

Am I the only one that would rather sacrifice years of my life to build my own wealth than win the Power Ball?

This is not preſtige. This is ambition and determination. Preſtige is caring what other people think along the way.

"There are three ways to make a living in this business: be first, be smarter, or cheat."

Babyj18777's picture

BTbanker: Am I the only one

O
(Orangutan, 283
 
Points)
 on 10/1/12 at 4:25pm
BTbanker:

Am I the only one that would rather sacrifice years of my life to build my own wealth than win the Power Ball?

Yes and that's the stupidest fucking thing I've ever heard.

ivoteforthatguy's picture

you didn't make a mistake,

O
(Neanderthal, 2,210
 
Points)
 on 10/1/12 at 4:26pm
Oreos's picture

Pete? Where's Pete? Maybe

HF
(Neanderthal, 2,459
 
Points)
 on 10/1/12 at 4:26pm
Babyj18777's picture

TheLastCall: I'm not at all

O
(Orangutan, 283
 
Points)
 on 10/1/12 at 4:32pm
Toronto's picture

I think this just goes to

 
Points)
 on 10/1/12 at 4:38pm
Toronto's picture

After his last words there I

 
Points)
 on 10/1/12 at 4:39pm
BTbanker's picture

Babyj18777: BTbanker: Am I

IB
 
Points)
 on 10/1/12 at 4:44pm

"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan

eac697's picture

In this country, you gotta

PT
(Chimp, 8
 
Points)
 on 10/1/12 at 5:05pm
Prestigious Pete's picture

Oreos: Pete? Where's Pete?

 
Points)
 on 10/1/12 at 5:53pm

Who am I? Read more here: http://www.wallstreetoasis.com/forums/prestigious-...

shark-monkey's picture

Bravo Bankerella.. I agree

HF
 
Points)
 on 10/1/12 at 5:20pm

Fear is the greatest motivator. Motivation is what it takes to find profit.

darety's picture

word

(Baboon, 109
 
Points)
 on 10/1/12 at 5:28pm
labanker's picture

UFOinsider: bankerella: Fuc

PE
(Orangutan, 330
 
Points)
 on 10/1/12 at 5:39pm
SirTradesaLot's picture

How has the firm done since

 
Points)
 on 10/1/12 at 5:46pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Relinquis's picture

how has the asset management

RE
(Neanderthal, 2,186
 
Points)
 on 10/1/12 at 5:49pm

relinquis... Killing the GMAT this December; Over/Under set at: 725 GMATs.

Falcon's picture

Toronto: After his last words

CF
(Gorilla, 512
 
Points)
 on 10/1/12 at 5:55pm

Just a sophomore looking for an opportunity to start up this dream of mine.

SECfinance's picture

I think he made you that

IB
(King Kong, 1,418
 
Points)
 on 10/1/12 at 6:00pm
wolverine19x89's picture

BTbanker: Babyj18777: BTb

O
(King Kong, 1,845
 
Points)
 on 10/1/12 at 6:09pm

If your dreams don't scare you, then they are not big enough.

"There are two types of people in this world: People who say they pee in the shower, and dirty fucking liars."-Louis C.K.

mlg321's picture

Refreshing post, thanks.

 
Points)
 on 10/1/12 at 6:16pm
Frieds's picture

Prestigious Pete: Prestige

AM
(Neanderthal, 2,530
 
Points)
 on 10/1/12 at 6:24pm
wolverine19x89's picture

After becoming addicted to

O
(King Kong, 1,845
 
Points)
 on 10/1/12 at 6:36pm

If your dreams don't scare you, then they are not big enough.

"There are two types of people in this world: People who say they pee in the shower, and dirty fucking liars."-Louis C.K.

MEvolutionToday's picture

SirTradesaLot: How has the

(Baboon, 127
 
Points)
 on 10/1/12 at 6:53pm
Prestigious Pete's picture

Frieds: Prestigious

 
Points)
 on 10/1/12 at 7:07pm

Who am I? Read more here: http://www.wallstreetoasis.com/forums/prestigious-...

Frieds's picture

Prestigious

AM
(Neanderthal, 2,530
 
Points)
 on 10/1/12 at 7:11pm
Austin.senna's picture

So where can I find these

(Chimp, 14
 
Points)
 on 10/1/12 at 7:24pm
Prestigious Pete's picture

Frieds: Prestigious

 
Points)
 on 10/1/12 at 7:29pm

Who am I? Read more here: http://www.wallstreetoasis.com/forums/prestigious-...

xqtrack's picture

I disagree - I think prestige

HF
(Gorilla, 600
 
Points)
 on 10/1/12 at 7:44pm

Financial Modeling Training
Guide to Finance Interviews

BTbanker's picture

Austin.senna: So where can I

IB
 
Points)
 on 10/1/12 at 8:45pm

"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan

Bearearns's picture

I thought you were going to

(Orangutan, 275
 
Points)
 on 10/1/12 at 8:52pm
JimmyDnFFX's picture

UFOinsider: bankerella: Fuc

O
(Baboon, 138
 
Points)
 on 10/1/12 at 9:03pm

80% of life is just showing up

-Woody Allen-

Tommy Too-toned's picture

Frieds: Tommy

(Gorilla, 505
 
Points)
 on 10/1/12 at 9:11pm
TheLastCall's picture

wolverine19x89: After

(Baboon, 134
 
Points)
 on 10/1/12 at 10:52pm
Silchasruin99's picture

Hey Bankerella, I'm curoius

(Monkey, 46
 
Points)
 on 10/1/12 at 11:17pm
BiotechBanker's picture

Made more ROI from swing

(Monkey, 48
 
Points)
 on 10/1/12 at 11:49pm

"Live as if you were to die tomorrow, learn as if you were to live forever."

veljones69's picture

It amazes me how stupid some

RE
 
Points)
 on 10/1/12 at 11:50pm
Marcus_Halberstram's picture

You, my friend, are a born

PE
(Neanderthal, 3,438
 
Points)
 on 10/2/12 at 12:55am

Financial Modeling Training
Guide to Finance Interviews
Banking Resume

monaco1's picture

Relinquis: how has the asset

 
Points)
 on 10/2/12 at 1:22am

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