I was wondering how much everyone is planning on tipping their MDs this year. Would $1000 each (my group has 6 MDs) be too low for an AS2? I don't want to seem greedy or ungrateful, although this year has been harder on me financially… For reference, my bonus last year was ~25% higher and I tipped $1250 each – and I figure there might be some leeway this year given this environment.
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My group is pitching in to make sure my group head's bonus doesn't go down from 2021, despite doing half as many deals this year. We are splitting it even so it's around 10 grand a person, the analysts actually took out personal loans which our bank was happy to finance - totally worth it to keep them happy.
I also recommend passing around a page with names and faces, similar to the doorman buildings, as I didn't even know several of our MDs still worked here and it really helps when you're not sure if you've tipped that random EMEA MD yet or not!
It's reassuring to hear banks are using their platforms to support analysts in times like this
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it's satire :)
lmfao
Given my MDs performance this year, I hope he gets a lump of coal.
Lotta MDs in Frankfurt would kill for a lump of coal right now.
Maybe that is where mine will exit to once the bank comes to the realization that him and his crew robbed them of millions in comp lol
Incoming FT analyst here. Are you actually supposed to tip your MDs? Never heard of this. How much of bonus/in what form?
EDIT: Keep the MS coming lads. Just asking questions and you're piling on as if there was a formula.
Yes this has been a thing for a long time in IB. Some firms are trying to phase this out as they see it as ‘too traditional’ but I think it’s here to stay!
“Understand the logic behind it”
God interns/incomings are stupid. Stop trying to fit in and pretend like you know what’s going on
Ah, the old “…that makes sense” or the “…I get it”
Clarify with your staffer - only some banks do it so it’s best to make sure in case your MD doesn’t like that tradition
How did you make it this far…?
You're the same type of cat who wears a suit to CFA exams, solely for the networking events post-exam.
I may be too old / stupid to realize if this is satire or not. However, if it is real…. I have never done this and never would…
It's a bit oldschool, but still common at top BBs albeit through a more informal process than historically. The main rationale is that these guys have worked their ass off to get to MD and have sacrificed a lot to bring deals for us, but the self-interested rationale in it is that it also demonstrates that you can read the room.
I understand, but that is what their job is and that is why they get paid millions. Collecting a couple thousand from juniors who work just as hard at their job seems odd to me. Maybe I’m out of touch or just naive, but if I were an MD I would never accept it.
25% of base is too high imo. I mean they make more than us so I usually tip 10-15% of base and then do something personal like baked goods or a nice bottle of Macallan 18.
Just given inflation, I'd pony up a bit more than last year. $1,500 or so feels right
Worked at a mid BB...never did this or heard of this during my 2-year stint....
some of you guys above are some real idiots and I pray for you.
Makes you wonder why people think it's so hard to get into banking.
It makes sense when you remember that half the posters on this website have autism
hahahaha
Did my stint at EB, didn't know this was a thing... quite sad
Like others have mentioned, $1,500 is market this year for AS2. At the very least I'd advise you not to tip less than you did last year - imo it reflects poorly
I’d say $1,000 is OK this year given the market but would definitely consider going above and beyond with some non-monetary shows of gratitude if you know what I mean….
Deleted
This is just a troll post right...if not y'all need help, medical help
Instead of tipping your MD I recommend giving your MD your tip to assert dominance.
Highly group dependent, need to keep that in mind.
Mind blown that some analysts don’t do this. This is why you’re prob bottom bucket. Tipping your MD is just like tipping your waiter or your landlord. Very common US practice.
exactly. i stay in Asia but even I know the tipping culture in the US practically demands that you tip your MD.
this thread is lmaooooo
I don't know about the rest of you, but am very very disappointed in the quality of service this year. Was thinking of capping off at $100 (Canadian) but may end up just putting a Bible verse on a post it.
It’s better to give than receive, that’s what I've emphasized to my kids. This year, my family has accepted that there will be no gifts under the tree so that I can make a gratitude payment to my MD and his family (wife, 4 kids and 2 other dependents (think aging parents, illegitimate children, gay boyfriend, etc.).
It's customary to tip MD's 20% of your salary (each one), so with 6 MD, you'll need to take out a loan. sorry bro, you've gotta respect the hierarchy
Even I, as an intern, tipped my MDs that I've worked with my entire internship salary (to each, worked closely with 3 in total so took out loans). I believe this helped me in securing that return offer. To pay back the loans and to tip my MDs fairly as a full time analyst, I'm currently working 3 jobs while in school and also sold my kidney recently. Tbh the jobs haven't contributed much to my MD tipping pool so I'm taking suggestions to what other organs I can divestitute to contribute to my tipping pool.
Looking to purchase a spleen atm, will pay 8% under market. Lmk
MD wants the tip? Fine, I’ll unzip it. It is a fat tip FYI
MD here. It varies.
At my prior bank (BB) there was a cap on cash tipping, which was quite annoying. MDs would have to also complete a cash tipping form and get that signed by the analyst to show that it was all consensual tipping (it was mainly so we can cover from any legal liabilities).
It was so annoying to everyone and the cap was so low (think $1000) that many analysts and some associates would buy gifts instead. The problem was that they wouldn’t coordinate - one year I ended up getting 2 iPads with the apple pen (guess my markups were bad…). It was nice gesture, but very inefficient (gave one iPad to my son).
At my current bank (boutique) there are no rules, so it varies. If it’s an analyst that I haven’t work much with I wouldn’t expect much. Maybe $1,000 cash. If I’ve worked on a deal, I’d think $2,000 is appropriate.
Anything above $5,000 I’d feel it’s a bit inappropriate, especially considering that we are 4 MDs in the team.
Just curious. You make much much more than analysts and associates and create a bunch of shit for them to do that their lives are absolutely miserable. And each still has to put together a couple of grands to show their gratitude? Do you feel like you actually deserve it? Isn't this your job to bring in deals? This is so pathetic. If anything, I would rather go have a nice dine with my MD and have an honest discussion to build mentorship and friendship. Just because MDs are older and higher up in the ladder doesn't mean he is a god to analysts and associates. They are still humans and could be wiped like dust and dirt
NGMI
I’m at RBC so won’t be tipping this year!
I've only worked in ibanking in Asia. Here tipping is not a thing. But there is a tradition to give red packets of lucky money to more junior people - married folks give lucky money red packets to unmarried juniors, or to support staff and service providers (security guards, tea servers, etc.) around Chinese New Year. Key is to that is to have nice looking red envelopes and get crisp 500 or 1000 HKD notes fresh from the bank. Can't give just any only notes - only really nice brand new notes. But since the max is really only 1000 HKD (ie. USD 125) it's not really that big a deal.
But to tip an MD??? "Here's a tip buddy. Learn to close."
Thoroughly enjoyed reading the comments! As an intern, I’ll make sure I pay my share too, poor MD :(
Who do you think gets the bigger bonus from the MD? Analyst A, who the MD knows will split off a certain % of his bonus to pay to the MD as a tip, or Analyst B, who will greedily not tip the MD.
All these people in threads talking about "bonus is down 20% this year OMG". Wonder why that is. Always tip!
I laughed so hard, thanks everyone
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Btw sophomore about to start recruiting here,
Used to be worried about the process given how competitive it is, but looks like there is not much competition out there and I might as well aim at MF PE
Should I start "Tipping Principals in 2022" to see if PE analysts are actually smarter?
Maybe tip your professors first
Maybe tipping your TAs gets extra handy
I was a TA in school and we actually had to do a module training on receiving gifts and tips from outside parties. Forgot the dollar limit but it essentially could only be capped at a certain amount and couldn’t be used to bargain for a better grade.
I'm at a lower tier bb and staffers let us know today is the final day to tip our mds. 150 for analysts and 250 for associates was the suggested tip amount.
So dumb. I really hate baking sometimes....
This is a joke right?!?!?!!?!? Pleas tell me this is a joke??????/
Of course not. In times like this it’s the MDs who could use the help. Be more thoughtful next time around
How much do you allocate to tipping the Directors in your group? Was thinking a bit more than my MDs since Director comp is far less; feel like it's more fair this way
I gave my MD tip of my dic
Are you serious Clark?
Well, I'll give you some colour. I've got promoted this year from a coffee-lady to shoe-shiner on the floor. Considering this year my shift MD increased our turn PnL by 27.3% via adding a foot job service, I'm going to tip in the range of $1,500 to $2,000 given my bonus was 170% this time. I say, all sales and trading loafers were shiny and bright so it was a good year. Happy holidays everyone!
I realize bonuses are lower this year so I don’t need my customary cash tip
that said, je voudrais le droit de seigneur, sil vous plait
I tipped my MD $500 as a summer analyst. Is that too little?
Personally I think $750 is more appropriate given the inflation we've had. $500 might not be enough for return offer.
500 only? i assume no return offer for you
>20% of base is too high imo. I usually do 10-15% then throw something personal in like baked goods or a bottle of a Macallan 18.
I plan on tipping my MD my entire bonus on the spot, at the meeting in which my MD tells me my bonus $. I reasoned this decision out as if he is judge but I am executioner.
In these sparing times, if the amount he decides I to have is high, then he will find that he is also eating tonight.
If the amount of my bonus is low, so will be his tip. And it will only be a consequence of his own choices.
Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.
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