8/20/12

It's the end of August and if you work at Bank of America-Merrill Lynch you know what that means,...year end bonuses! By now I'm sure you've got a list a mile long to spend it on, like high fashion in sporting new Hugo Boss suits or more practically as a hardcore analyst, to further pay down your student loans thereby releasing future cash-flows which you will use to build your financial empire! Or you could just say, "to hell with it all," and blow it on a gambling habit in Vegas but before you make any plans you first better see how much you can expect to receive and some options...




Based on a Business Insider article on first year corporate and IB analyst bonuses from BAC-ML, I've added an economic twist in relation to my article, Want A Career On Wall Street, Plan On Moving From New York City by deflating their total NYC compensation to realize the differences in taxable income from second-tier WS venues. Here's a breakdown of the numbers...

1.) ML's base pay is $70K, which according to my source, is at the low end of the range for first year IB Analysts. Assuming this is in NYC dollars, here's its equivalent in the other cities:

* Durham, NC: $41,095.47
* Jacksonville, FL: $43,038.80
* Salt Lake City, UT: $43,010.74

2.) It was reported that this year's bonus range from $25K to $70K with the median being about $50K. Again, deflating this from NYC dollars you would have:

* Durham, NC: $29,353.90
* Jacksonville, FL: $30,072.00
* Salt Lake City, UT: $30,721.96

3.) Now, what matters to you monkeys is the latest total compensation figures as an analyst and here's how that $120K looks living outside of New York. Yes, living because these are only dollar amounts but if you adjust them against a cost of living index almost all major categorical expenses will be lower than living in NYC.

* Durham, NC: $70,449.37
* Jacksonville, FL: $73,110.80
* Salt Lake City, UT: $73,732.70



Well, that's my perspective on the matter but enough of the technical stuff. What we'd really like to know is if you are / want to be an IB Analyst...what are you expecting from your first bonus?

If you had a choice, which city would you spend it and what would you buy?

Comments (25)

Best Response
8/19/12

Definitely equities in Dallas.

8/19/12

You do realize that analysts in other cities (aka Charlotte, Houston, etc) get paid the same as analysts in NYC for the most part. Thus, you shouldn't be deflating numbers to figure out comparable pay in regional cities, but rather inflating numbers. Good try though.

8/19/12

I remember reading this on vault years and years ago: http://www.vault.com/wps/portal/usa/vcm/detail/Car...

You can tell how dated it is by their use of the phrase "e-money."

In reply to eaglehead03
8/19/12
eaglehead03:

You do realize that analysts in other cities (aka Charlotte, Houston, etc) get paid the same as analysts in NYC for the most part. Thus, you shouldn't be deflating numbers to figure out comparable pay in regional cities, but rather inflating numbers. Good try though.

He's seems to be trying to show how much New York sucks for non-ballers. He wasn't belittling people who work in other cities.

In reply to holla_back
8/19/12
holla_back:
eaglehead03:

You do realize that analysts in other cities (aka Charlotte, Houston, etc) get paid the same as analysts in NYC for the most part. Thus, you shouldn't be deflating numbers to figure out comparable pay in regional cities, but rather inflating numbers. Good try though.

He's seems to be trying to show how much New York sucks for non-ballers. He wasn't belittling people who work in other cities.

Dually noted, I've just run into lots of people in my time that seem to think that working for a BB in a regional office while still in an IB role means that you get paid like 20% less than you do in NYC when it's just not true at all. I can remember back during training thinking "How the fuck are any of these NYC guys gonna save any money at all their first few years?"

8/19/12

Oh yeah - the guys in our NYC office all rent apartments with roommates, and the guys in Cleveland and Detroit (consulting) are buying places.

8/19/12

btw, Houston was rated the best "city for your dollar" in a recent article, though I am not questioning GMngmt's methodology or anything. I believe it was in the Houston Business Journal if I am not mistaken. And with the Shale play/Fracking boom that's happening, there's plenty of opportunity to get in with some IB's or AM's or an energy analyst/ trading position. Houston is hot! and not just because it's August! of course I'm from there so I'm plenty biased in that regard...

"Everything comes to those who hustle while they wait."
-Thomas Edison

8/19/12

i would tithe, then i would allocate a small portion for fun purposes, then i would save the rest. i'd probably spend it in Texas, Houston metro area. or buy some hunting gear. of course, i still have one more year of undergrad. but it's good to dream! i'm really looking forward to graduating and getting out there.

"Everything comes to those who hustle while they wait."
-Thomas Edison

8/19/12

Buying Houston bal life.....

Your 120 in NYC is 120 in Houston but goes even further

I see 78 cents of every dollar in Houston

8/19/12

Jacksonville, Durham, and Salt Lake City? Are we talking about bank tellers? Are you a real person or some sort of link generating bot?

Your source is quite possibly retarded because 70k is base for every BB 1st yr analyst.

No idea on BAML bonuses but I recall someone in that DB article about Wells commenting that there were 2 tiers below what was reported as "bottom"..but no one knows what they got. Thus 25k might be a standard double-secret bottom bucket across the board.

As an aside, I would rather eat my own dandruff than visit Business Insider.

8/19/12

So which is better Houston or New York City?

In reply to charlie 09
8/19/12

Having been born in Cleveland - and still having friends there - I was envious of their grills, in-ground pools, and spacious two-bedrooms. But then again, they don't live a 5 minute walk from Broadway, or a 10 minute cab ride from the Doughnut Plant (great place...Grand and Essex), and they certainly don't live anywhere near a world capital of politics, finance, culture, cuisine, fashion, dating...etc.

Life is about trade-offs. You can't have it all. But you can have more if you live in New York.

P.S. Cali isn't bad either.

8/19/12

ah here it is...wasn't the houston business journal. even better- forbes
http://www.forbes.com/sites/joelkotkin/2012/07/09/...

"Everything comes to those who hustle while they wait."
-Thomas Edison

8/19/12

you rent a top notch apartment in the swankiest part of town with over 1000 square feet for less than $1500/month in Houston.

apparently Houston's pretty cool right now too. i can see why, being from there and all...
http://www.forbes.com/sites/morganbrennan/2012/07/...

"Everything comes to those who hustle while they wait."
-Thomas Edison

8/19/12

ScotchMonkey:
Having been born in Cleveland - and still having friends there - I was envious of their grills, in-ground pools, and spacious two-bedrooms.

Leadership can be defined in two words: "Follow Me"

In reply to SmoothMove
8/20/12
Schmoove28:

Definitely equities in Dallas.

I quit.

In reply to WreckEmFinance
8/20/12
WreckEmFinance:

you rent a top notch apartment in the swankiest part of town with over 1000 square feet for less than $1500/month in Houston.

apparently Houston's pretty cool right now too. i can see why, being from there and all...
http://www.forbes.com/sites/morganbrennan/2012/07/...

Good luck with that. Rental market is on fire. $2/ft is the low end in desirable areas. And forget trying to rent a house. My friends were offering over asking and 18 month leases and still losing out.

We still have it better than most, of course.

In reply to PossumBelly
8/20/12
Cartwright:
WreckEmFinance:

you rent a top notch apartment in the swankiest part of town with over 1000 square feet for less than $1500/month in Houston.

apparently Houston's pretty cool right now too. i can see why, being from there and all...
http://www.forbes.com/sites/morganbrennan/2012/07/...

Good luck with that. Rental market is on fire. $2/ft is the low end in desirable areas. And forget trying to rent a house. My friends were offering over asking and 18 month leases and still losing out.

We still have it better than most, of course.

my buddy is trying to rent his townhouse if anyone is looking

In reply to PossumBelly
8/20/12
Cartwright:
WreckEmFinance:

you rent a top notch apartment in the swankiest part of town with over 1000 square feet for less than $1500/month in Houston.

apparently Houston's pretty cool right now too. i can see why, being from there and all...
http://www.forbes.com/sites/morganbrennan/2012/07/...

Good luck with that. Rental market is on fire. $2/ft is the low end in desirable areas. And forget trying to rent a house. My friends were offering over asking and 18 month leases and still losing out.

We still have it better than most, of course.

cartwright, you are definitely right. the rental market is on fire in Houston right now. and rents are going up with no end in sight for the time being. However, having spent many hours on apartmentdata.com doing research for my MD and VP of development, i can say with definitive accuracy that many of the upscale areas, i.e. galleria, kirby area, greenway, montrose, medical district, etc. still of have rents below $2/ SF. The average is more around $1.70-$1.90/SF Of course you are right about the super duper swanky areas, they are pushing 2.20/SF, especially in the central business district. of course, with the way the market is, that indeed could have changed over the last week since I completed the internship

"Everything comes to those who hustle while they wait."
-Thomas Edison

8/21/12
In reply to iamamonkeybanker
8/21/12
8/21/12
In reply to eaglehead03
8/24/12

eaglehead03:
You do realize that analysts in other cities (aka Charlotte, Houston, etc) get paid the same as analysts in NYC for the most part. Thus, you shouldn't be deflating numbers to figure out comparable pay in regional cities, but rather inflating numbers. Good try though.

The base pay is relative but what I'm trying to show implicitly is the purchasing power. The reason for deflating the numbers is because the cities used have a cost of living lower than NYC. I suspect that Charlotte and Houston, if they do pay the same, don't have the same costs of living as NYC. If you want to verify this for yourself, click on the cost of living hyperlink in the article and enter the numbers.


WreckEmFinance:
i would tithe, then i would allocate a small portion for fun purposes, then i would save the rest. i'd probably spend it in Texas, Houston metro area. or buy some hunting gear. of course, i still have one more year of undergrad. but it's good to dream! i'm really looking forward to graduating and getting out there.

Glad to hear that and I hope you enjoy the fruits of your labor down in Houston!


Cartwright:
Jacksonville, Durham, and Salt Lake City? Are we talking about bank tellers? Are you a real person or some sort of link generating bot?

Your source is quite possibly retarded because 70k is base for every BB 1st yr analyst.

No idea on BAML bonuses but I recall someone in that DB article about Wells commenting that there were 2 tiers below what was reported as "bottom"..but no one knows what they got. Thus 25k might be a standard double-secret bottom bucket across the board.

As an aside, I would rather eat my own dandruff than visit Business Insider.

No. Read my previous article, Want A Career On Wall Street, Plan On Moving From New York City and you'll see the relevance of these cities. I only used the BAC-ML reported base salary plus I have salary ranges from an IB alumnus of mine that corroborated similar numbers so I don't see the issue. Could you clarify it better? Also, I didn't use the WF pay as that wasn't the focus of the article nor mine but I agree that is a possibility.

As far as the Business Insider is concerned, I too take it with a grain of salt.


Taylor Sandoval:
I would buy a new wife.

Laugh out loud!

Who Am I? | See what GMngmt is all about at About.Me

In reply to GMngmt
8/24/12

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8/25/12

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