Am I being underpaid?
Alright, so let me give you guys the rundown (FYI this is my first post).
I interned (unpaid) at a middle market investment bank for 3 months (Sep-Dec 2011) and was offered a job with the firm at the end of the year. The terms were $40k salary + a discretionary bonus of up to 100% of my base salary (so possible $40k bonus). I accepted the position and am still with the firm as of now. The hours here aren't too brutal, I average 12 hour days but during peak times I may have to pull 2-3 all nighters in a period of a couple weeks.
My bonus will be paid out at the end of the year, but I have absolutely no idea what it will be. As of right now the $40k salary I am making seems ridiculously low for 12 hour days plus having to pull all nighters and working on the weekends and pretty much no vacation. I compare this with friends working at Deloitte making $50-60k working 9-5 and it makes me wonder why am I still where I am at.
So, my question to everyone is, should I work for the firm for another year? What percent of my bonus do I need to receive to continue to work for the firm? If my bonus is terribly low, how do I approach my MDs with the news that I am leaving based on compensation?
I am happy to provide more information if that helps.
Additional info:
I am located in Southern California
Deal sizes (primarily sell-side) have ranged between $10-50mm
Bonus is paid at the end of the year
Thanks in advance!






Where are you located? It
Where are you located?
It really sounds like you're underpaid. Honestly, I wouldn't put too much hope on your bonus because if they've been that cheap with you so far, they probably will be cheap with your bonus too... Anyway, even with 40k bonus, your total comp would be far below the street.
Start looking for other firms...
Def start looking around esp
Def start looking around esp if ur in NYC
Yeah, I agree. You are being
Yeah, I agree. You are being underpaid for the hours, stress, and work you are putting in. How is their deal flow? When you say MM, around what market cap are you talking about? 40k is def under the street norm. Do you get your bonus towards the end of this month?
underpaid.
underpaid.
"Don't quit. Suffer now and live the rest of your life as a Champion" - Muhammad Ali
Is this in NYC?
Is this in NYC?
If you get the 100% and you
If you get the 100% and you feel you're learning a lot and you're making the right connections and you like run-on sentences, then keep the job. Otherwise, I'd leave right after the check clears.
I'll do what I can to help ya'll. But, the game's out there, and it's play or get played.
Thanks for all of the
Thanks for all of the responses, very much appreciated. Answers to your questions below:
I am located in Southern California, and the deals I have completed this year (pretty much all sell-side) have ranged from $10-50mm, with one debt deal that was $150mm+. My bonus is paid out at the end of this month (although I can see my MDs coming up with an excuse to delay my bonus).
I have an employee review in two weeks, and I am thinking about breaking the news that I am not going to tolerate such low compensation anymore and am going to leave, although it will significantly impact my year end bonus. I expect to get destroyed by my MDs that I am making a terrible decision, so any more input as to what I should do is appreciated.
Most definitely underpaid.
Most definitely underpaid. Unless you get over >$20K for YE bonus, you're doing slave labor. $80K is a respectable number for what you described, in my opinion.
I think you should kindly discuss the terms of your salary at the YE review. Reason being:
- You go balls to the wall and demand more money = they may shit on you with the bonus
- You kindly assert that the work you do is worth more and that you can find better work elsewhere = they take you seriously and will likely not shit on you with the bonus.
The most important thing in this situation is to have your bases covered. Make sure you can or do find employment elsewhere. Once the bonus is in, if you still don't like the numbers, make good on your assertion and bounce.
I would wait until you see
I would wait until you see your bonus figure to do anything. if it is 40k, then at a small MM firm in socal that sounds about what I would expect you to make. If it is 20 or less then speak with management.
Wait to see what your bonus
Wait to see what your bonus is. $40k is way low, but $80k a boutique in SoCal may not be. If you like working there, you may want to see where total comp falls out and then have a conversation. If it is low, tell them that you know that you are well below market. If it ends up at $80k, that isn't terrible as a first year at a boutique. Ask them what your salary progression will be and say that you live off of your salary, and it's been hard making bills at $40k. No reason to risk your current job without knowing what the playing field is. If they screw you then, yes, head for the doors.
Why on earth would you bring
Why on earth would you bring that up in a review, presumably before you've found something else?
Deloitte 9-5? Please show me
Deloitte 9-5? Please show me where.
When you say Southern
When you say Southern California. Is that in a city or in suburbs? Because pay differential could be due to that.
Friends at Deloitte are they working in city?
I wouldn't make a rash decision until.... a week after bonus. Can you live fine if you don't find work for a year? What is your financial status?
It may be good to set a bonus target, but just think about finances before quitting. If you quit MBA back on target or just try to find work. You may get raise in bonus talks and may be something you should ask after you get bonus number. Might be appropriate to quote market statistics/friends are making etc. See what they say. Make sure to do it in a nice way and that your appreciative of bonus.
You're at a small boutique,
You're at a small boutique, 10-50 is the lower MM, the pay isn't great, but what are your other options? I'd look to lateral.
1) Do not express
1) Do not express disappointment in pay until the bonus hits your account.
2) Do not tell them you're going to leave. Ever. Go get an offer for them to compete with. They will assume you're looking after (1) above.
Do NOT bring this up during
Thanks again for the
Actually, I wouldn't express
Sounds awful. Put together
Super Nintendo, Sega Genesis - when I was dead broke man I couldn't picture this
ThaVanBurenBoyz: Actually, I
tgfp, you're spot on with the
"Death smiles at us all. All a man can do is smile back."
yes you probably are, but
Back Office monkeys get paid
Hmm you guys are all too used
You may be underpaid, but if
ladubs111: If I was you, i'd
Based on similar deal sizes,
Not to highjack a thread - It
Just ask them what type of
Thanks again for the
Just my two cents, but I
tgfp20: What are your
Don't ask about it. To sum it
http://sportstanker.blogspot.com/
You should expect 20-30% of
As long as your bonus is >=
My viewpoint is that if they
Turbo leverage for capital explosion -- BD Capital
My WSO Blog
Honestly, even if you get a
Thanks again guys. I should
tgfp20: Thanks again guys. I
Turbo leverage for capital explosion -- BD Capital
My WSO Blog
I think you got some bunk