• Sharebar

Long-time reader but first-time poster. Hope the jungle creates some noise on this.....

I've seen a lot of info on Associate bonuses from Y0 to Y3.

Would like to know how Associate base pay is currently moving from Y0 to Y3 at a BB and MM (HL, Blair, Baird, Harris Williams, etc.).

Are we still looking at BB post-MBA Associate pay at

Assoc 0: $100K
Assoc 1: $115K
Assoc 2: $130K
Assoc 3: $145K

Anyone have figures for MM banks?

The WSO Advantage - Investment Banking

Financial Modeling Training

IB Templates, M&A, LBO, Valuation + Learn More.

IB Interview Prep Pack

30,000+ sold & REAL questions Learn More.

Resume Help from Actual IB Pros

Land More IB Interviews. Learn More.

Find Your Perfect IB Mentor

Realistic IB Mock Interviews. Learn More.

Comments (18)

  • lasampdoria's picture

    Not bad. Not bad at all.

    "Those who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."- Benjamin Franklin

  • bankersball's picture

    Sounds legit for BB's. Anyone know if MM shops are doing the same? Would be great to get some #'s, Assoc level and the name of the shop.

  • AnalystMonkey2769's picture

    sorry if this seems obivous or stupid lol but what is year "0"? is that simply when you start as a first year associate? why not call the first year associate Y1 second year Y2..etc.

    I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG

  • WallStreetPlayboys's picture

    The original post is accurate for most MM shops:

    Assoc 0: $100K
    Assoc 1: $115K
    Assoc 2: $130K
    Assoc 3: $145K

    This is quickly changing though and it's moving more towards the 100, 120, 140, 160.

    More importantly, seeing an increase in "group specific bonus". Eg. If you work in a group that kills it and you are on the right deals your bonus actually is impacted even at the associate level. Before it was not a huge band but that tide seems to be turning.

    60-120% of base as bonus is a much wider range than many previous years where it was tighter in the 70-110 range or so.

    There are always exceptions, so not trying to turn this into some not picking contest, the real extra takeaway is working for the "right" group seems to be increasing in value (eg. Before they would "share" more of the good and bad years, if one group was up of down). Increasing trend becoming more "eat what you kill"

    WALLSTREETPLAYBOYS.COM

    TWITTER @WALLSTPLAYBOYS

    Advice from Real Wall Street professionals.

  • In reply to AnalystMonkey2769
    bankersball's picture

    Does make it confusing I agree. Seems like the convention is to call the 6-7-month period post MBA (graduate in June) until Jan of the following year the Assoc 0 period.

  • abacab's picture

    Summer Associate base is 100K prorated for my BB offer.

  • AnalystMonkey2769's picture

    so Y0 is simply a 1st year associate and Y3 is a 4th year associate?

    I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG

  • In reply to AnalystMonkey2769
    cphbravo96's picture

    AnalystMonkey2769:
    sorry if this seems obivous or stupid lol but what is year "0"? is that simply when you start as a first year associate? why not call the first year associate Y1 second year Y2..etc.

    It is a peculiar convention, but the reason has to do with when bonuses get paid out. As an analyst, you get paid your year end bonus at the end of your entire first year, same with the second year analysts, etc...so you start in June/July and one year later, in June/July, you get your bonus number (though probably not actually paid out until Aug/Sep).

    For associates, they label the A0 to reference your first 5 or so months on the job because they pay your bonus at the end of the calendar year, to align with the rest of the bank's bonus payouts. Presumably, the thought is you are not just going to be there for a couple of years and leave, so they are putting you on a regular bonus schedule. I'm sure the idea there is so they aren't paying out relatively high bonuses a quarter or two before the actual year end results are in. The other possible factor is the pay bump/progression. From an HR standpoint, there has to be some sort of mechanism to distinguish between the pay grades, if you will, of the all the different associates. Instead of saying, yeah the second year associates (who have only been 17 months) get $XXXk bonus, etc.

    The actually reason why they use 0-3 instead of 1-4 is probably unknown. My guess would be so there is less confusion when comparing numbers across years. When I see the A0 designation, I immediately recognize that it's an abnormal naming convention and it clues me in that the comp numbers might not be equivalent. For example, an A0 are probably going to make $50k salary (prorated $100k base) plus a prorated bonus of maybe $80k...so their total comp (excluding sign-on, relocation, etc.) is going to be around $130k...which looks odd when compared to the $260k or so an A1 makes.

    Truthfully, it's probably not even an official designation. More likely it's something a bunch of WSO'ers derived while trying to compare salaries across banks, lol.

    Regards

    "The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
    - Ronald Reagan

  • In reply to AnalystMonkey2769
    cphbravo96's picture

    AnalystMonkey2769:
    so Y0 is simply a 1st year associate and Y3 is a 4th year associate?

    Technically they are in their 4th calendar year of working at the bank, but they don't have 4 years of experience. In actuality, a Y3 is somewhere between 2.5 and 3.5 years.

    It basically looks like this...

    .....A0..............A1..............A2..............A3.....
    6 months + 12 months + 12 months + 12 months

    The best way to think about it might be to say the number references the 'full year bonus' that person is going to get. A0 doesn't get a full year bonus, A1 gets their first full year bonus, etc.

    Regards

    "The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
    - Ronald Reagan

  • AnalystMonkey2769's picture

    Ah got it, thank you both for the clarification!!

    I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG

  • overpaid_overworked's picture

    To unlock this content for free, please login / register below.

    Connecting helps us build a vibrant community. We'll never share your info without your permission. Sign up with email or if you are already a member, login here Bonus: Also get 6 free financial modeling lessons for free ($200+ value) when you register!
  • tera6ws's picture