animalz:

awesome news.
congrats to all of you at (or going to) GS, you lucky bastards.

Don't worry. That number will become "street" soon and other BBs will follow, just like weekend work policy.

 

That's quite an increase but how does that work for people that just became 2nd years... what rate did they get put at?

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."
 

I've heard 85k base with 35k bonus. Does this mean bonuses are capped at 35k regardless of performance or is that the minimum an analyst could make pre-tax?

 

Recent WSJ article on most BB either increasing or considering increasing ALL junior banker pay by 20-25%. SA analysts who get offers now get it now, those who are just now starting will get the bump in NEXT year's pay, not right now. If you think about it the SA's get this technically next year too when they start in Aug 2015.

Can't post link because I'm a new primate.

Article sites increasing competition from Silicon Valley

 

I can see Erhardt being the motivating factor for the hours reduction/Saturdays off, but that was a full year ago and only now are banks going from 70 to 85. And it's not like an extra 15k would have saved his life anyways.

The real reason is the banks (think they) are losing talent to the Googles and Facebooks of the world-while IB is still prestigious, what I think a lot of people here fail to realize is that its no longer the "it" job for college grads. There will still be people (like most of this site's userbase) who want to go into IB and finance, and many of them will be very bright and motivated, but investment banks, particularly the bulge brackets, pride themselves on having the "best" graduates out there, and this is an attempt to maintain the former status quo.

tl;dr Lloyd hopes he can buy popularity with college seniors

 

I heard bonuses were effected according to an article I saw yesterday about BAML and JP making the same moves. I've heard first year bonuses are typically around 50k so if you add 15 to base and take away a potential 15 from the bonus, looks about even folks

 

They may lower bonuses slightly, but I'd still prefer the $85 + smaller bonus than the $70 + today's bonus (assuming the difference is an equal dollar amount). Just your standard "Lottery payout" problem. A dollar today is worth more than a dollar tomorrow. Also have confirmation that Wells Fargo has bumped next year's first year FT offers to $85 starting in June (the normal bonus cycle).

 

Historically 2nd years have not gotten a bump at the same time as first years.

If you are currently working as a first year, you may get a bump.

I anticipate that Manhattan rents will go up $300/mo or so as street moves from $70 to $85.

Also starting salary in tech is a lot higher than IBD And the value of the stock options in tech is probably comparable with bonuses in IB. If they can move starting to $100 or 110, GS might be a little more competitive.

I honestly don't think they're trying to keep up with tech- I think they're simply trying to make sure an IBD analyst can survive after paying $2500-$3000/mo to split a two bedroom in Manhattan.

 

Not sure why you got shit thrown at you. Makes sense that would happen. It appears to me that they are simply moving money around from bonuses to comp, giving you more to live on rather than giving you a massive lump at the end. My firm started doing much the same thing (albeit with much smaller numbers involved, haha).

 
Addinator:

Not sure why you got shit thrown at you. Makes sense that would happen. It appears to me that they are simply moving money around from bonuses to comp, giving you more to live on rather than giving you a massive lump at the end. My firm started doing much the same thing (albeit with much smaller numbers involved, haha).

I think comp is actually just on the rise. BAML is also increasing comp but top bucket bonuses this year were ~75K, on par with / a little more than last year. I don't think they'll be making in huge decreases in bonuses next year, even with base salary rising. Among a few other factors, it's just a great time to be in banking, given the entire 2008 period.

 

What about international offices (London, Hong Kong, Singapore)? Should we expect something similar?

“He never chooses an opinion, he just wears whatever happens to be in style” (Leo Tolstoy - War and Peace)
 

Man these 1st years just need to bribe an IT guy to give them access to a top C level employee to send an "official" email about pay raises then leak it. Seems like an easy way to make them pay you more.

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
Best Response

I remember last year, when everyone on this board was chastising banks for cheap lip service to "fake" weekend policies. When it turned out the banks were serious about said protocol shifts, everyone was certain a steep drop in compensation was on the horizon. And, to the surprise of no one, with these base hikes, everyone on this board is racing to adopt the too-cool-for-school WSO melancholy, prognosticating like-for-like decreases in bonus, rent hikes in NYC (is this serious?) and continued talent drain into the tech field.

It really is astounding to me that everyone here feels the need to smother every last iota of good news. Banks are nothing but beguiling despots, anxious to hoodwink the next group of unexpecting college grads. And, of course, you're just too clever to be so deceived.

As I did before when weekend policies were first announced, allow me to be the sole optimist on this board and suggest that (perhaps!!) this is another step in banks' larger attempt to improve the lifestyle of young finance workers.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."
 

Seriously, I'm surprised as the pessimism. Either way, banks are trying to up compensation and enhance work/life balance. I don't see how they could feasibly decrease bonuses without experiencing MORE attrition to the buyside. Retention was a common theme in all of my interviews when asked "what do you plan on doing after your 2-3 years are up?" and I see this as a step in terms of increasing retaining talent internally.

I've heard rumors of the increases happening in Jan/Feb 2015 for current analysts, and even heard some people discuss the possibility of backpaying you for the 6 months prior (July-Jan) where you weren't making 85k prorated. Even if that doesn't happen, a salary increase is a net positive for you. Not to mention if your firm does 401k matching, higher base salary = more free money (albeit only around $750).

"You rarely have time for everything you want in this life, so you need to make choices. And hopefully your choices can come from a deep sense of who you are." - Mister Rogers
 

Curious if the email mentioned if the hike would start in January or on next year's pay cycle?

“Success means having the courage, the determination, and the will to become the person you believe you were meant to be”
 

Qui praesentium hic excepturi dolorem laudantium voluptates. Alias assumenda aut numquam et laborum qui. Sint nostrum vel qui perferendis vel non harum iure.

Exercitationem quisquam nihil at quia et quibusdam reprehenderit excepturi. Inventore ipsum soluta placeat. Et quibusdam ad molestias culpa.

 

Eius est consequatur placeat quam illum quia voluptate. Eos repellat rerum eos inventore consequuntur. Sed non aspernatur totam mollitia accusantium voluptas sit. Voluptas qui vel voluptas consequatur animi possimus. Qui omnis maxime fugit facilis est et itaque.

Voluptatibus optio aspernatur inventore cupiditate dolores repellat qui. Vel incidunt corporis atque excepturi dolorum repellat. Accusantium laborum et et amet rerum eos.

Quasi quo suscipit ad eligendi. Quia rerum perferendis fugit porro. Eius unde ea quibusdam asperiores molestiae accusamus.

Aut eveniet accusantium dolores consectetur. Impedit eveniet enim voluptatem et sed enim architecto. Repellendus vero porro doloribus necessitatibus totam maiores ipsum rerum. Eaque occaecati optio quibusdam quia alias iusto rerum. Harum soluta blanditiis quos est quia iusto ex. Dolores aut fugiat et est neque cumque qui.

 

Autem aut et commodi vel iure enim nisi dolore. Id dolore perferendis illum deserunt odio ratione. Hic eaque eaque molestias iste sunt aliquam. Vel modi aut sunt dolores sunt qui est. Earum quos enim libero minus odio.

Tempora dolores reiciendis sit. Ea accusantium deleniti sit occaecati.

Maxime assumenda dolorem quam eaque cumque alias. Quod consequuntur alias nostrum ratione ab doloribus maxime et. Illo consequuntur sunt eum non ut ipsa impedit.

Dolorum sapiente eius officia saepe vero voluptas similique. Quod quibusdam ipsa voluptatem qui ab est. Est quisquam vitae aliquid. Earum et sit tempore. Tempora quam asperiores aut alias odio.

 

Illum veniam accusantium ut quia qui harum sunt. Et rerum temporibus et aspernatur. Ab odio alias amet doloremque odit quia aliquid. Et exercitationem debitis quis ipsam ut sint repellat. Reprehenderit reprehenderit numquam molestiae omnis perspiciatis similique qui.

Velit aliquam amet facilis sed. Autem veritatis necessitatibus dolor aut quis qui voluptatem repudiandae. Cum inventore quam consequatur aut totam excepturi reiciendis. Eum quae assumenda et consequatur. Rem non quidem voluptatibus hic.

Aperiam quia ipsam dolorum cupiditate rerum. Dolores ex velit facere voluptatem. Ex eligendi quo velit est recusandae quidem. Repellendus delectus animi corrupti quo. Architecto sit et iure.

Cumque temporibus qui nemo excepturi repudiandae distinctio. Explicabo placeat perferendis cupiditate totam laboriosam tempora. Id in voluptatem neque non autem nesciunt quisquam. Tempora fuga unde quis debitis sit. Sit amet sit est maiores dolores soluta. Hic amet sequi libero inventore dolorum aperiam voluptas quia. Aliquam possimus at quis est maiores totam quos.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (85) $262
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (198) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
dosk17's picture
dosk17
98.9
5
GameTheory's picture
GameTheory
98.9
6
Secyh62's picture
Secyh62
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
pudding's picture
pudding
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”