What Would You Do With Your First Wall Street Bonus?O
It’s the end of August and if you work at- 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 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- , 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.)'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?