How to Answer Salary Question in Email?
Hey guys, I had a quick question for you. I received an email from a managing partner of a boutique asking me what my expected compensation would be as an analyst (I received this after interviewing with another partner). The firm is based in Chicago and was recently started. I would imagine - in this economy - that compensation for employees is a concern of theirs, at least for the time being. I was wondering how I should approach/respond to the email. I really do not want to give an exact figure in the email but I also want to stress cost of living, market rate, etc. I really would appreciate any feedback. I have to email him back today. Thanks!
Salary Expectations in Email
When offering salary expectations, there are two schools of thought that our users have explained:
- Offering a well researched range
- Requesting the "market rate"
Market Rate Expectations
Some users caution that offering an exact number can lead to you "shooting yourself in the foot" and low balling yourself. Our users advise requesting the "market rate."
User @Human", a private equity partner, offered this perspective:
Always say: Market Rate. Never put a dollar amount until the employer offers a number, then you can decide what to do with it (negotiate upward, accept or reject the offer). Never get low balled into a lower number. Most reputable firms will pay at a decent rate.
User @TheMasao", a private equity vice president, emphasized that market rate is preferred to "negotiable":
Exactly, if you don't know what the going rate is don't shoot yourself in the foot. Negotiable sounds like you want to negotiate before you've accomplished anything.
Research Rate Expectations
While some users caution against giving a specific numbers, some users believe that it is important to give a real number when asked for your expectations. You should research similar firms and experience levels to see what salary you should request.
You want to phrase it that "I am excited to come work for you, and in all my experience and research, $xx,xxx seems to be market compensation for analysts at firms like ours."
BB first years earn $70k starting, so it would be fine to suggest $60 to $70k and then support that with something like based on your research, starting salaries for 1st year analysts are between $60 and $70 or even $55 to $70 if you want to be even more conservative.Simply give a modest range - for example,
(posted in Sept 2010).
User @IlliniProgrammer", a hedge fund quant, commented that avoiding a real number is a mistake:
No, no, he's requesting an ask from you. You've got to be a man and give him a number. I would cite the market rate for my services.
User @IlliniProgrammer" went on to offer guidance for negotiating your rate with smaller firms:
If he's equity rich and cash poor - and he has a good track record, you may want to think about offering to take a lower cash base and/or bonus and take some of the pay in the form of options or equity. Enumerate things in writing, make sure he some kind of corporate or partnership structure set up, and expect to make junior partner next year in lieu of a bonus.
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If I were asked this question, id just tell him from my research on the analyst salaries at small to mid size firms, the range is about xx-xx. I think he understands that u have cost of living expenses..
I defer until they basically demand it. Usually, a nicer version of "my expectations are to be paid what the job pays".
Thanks guys, I appreciate it. I was just thrown off guard by the question in the email. My only experience has been face-to-face when discussing this matter.
You want to phrase it that "I am excited to come work for you, and in all my experience and research, $xx,xxx seems to be market compensation for analysts at firms like ours".
You don't want to sound like "I demand $xx,xxx or you can go fuck yourself"...
Largely agree with the above.
If you want to leave yourself a little wiggle room on the off chance he can't afford your price, you can mention that the salary or total compensation would be a function of the requirements of the job.
I think a good way to respond would be as follows:
"In terms of compensation, I'd be willing to entertain a competitive offer."
No, no, he's requesting an ask from you. You've got to be a man and give him a number. I would cite the market rate for my services.
If he's equity rich and cash poor- and he has a good track record, you may want to think about offering to take a lower cash base and/or bonus and take some of the pay in the form of options or equity. However, don't do him a favor and expect him to repay it. Enumerate things in writing, make sure he some kind of corporate or partnership structure set up, and expect to make junior partner next year in lieu of a bonus.
OP, I know what firm you're talking about. You should be able to request 60-70 base. Give them that range, and tell them it's based on your research of other firms. I don't know why they're asking, they should have just offered you something in that range.
How many years of experience do you have? Congrats on your offer.
I would agree with most of the previous posters. Simply give a modest range - for example, BB first years earn $70k starting, so it would be fine to suggest $60 to $70k and then support that with something like based on your research, starting salaries for 1st year analysts are between $60 and $70 or even $55 to $70 if you want to be even more conservative.
Thanks again everyone, you were all really helpfull. Beers on me! ThaVanBurenBoyz - I've had two previous SA stints
Salary Expectations for Boutique Bank (Originally Posted: 07/08/2009)
I am looking to take an associate role in equity research at a boutique bank in the mid-Atlantic region (Baltimore). I am straight out of undergrad at a non-target school. What do you think would be a reasonable expectation for both salary and bonus? Thanks in advance.
Just out of curiosity how are they offering you an associate role? Do they not have analyst level? Or are you just really special?
Aren't equity research titles flip flopped. So you enter as an associate and move up to analyst.
associate is the entry level I think.
I would like to hear about this too. If you don't mind could you share about how you get in please?
Thanks a lot
I did an equity research internship at another boutique in the same region...and after my freshman year, I interned at the same bank but in a different capacity (more IB) related. I graduated near top of my class (3.8) magna cum laude, 3 honor societies, etc. Do you really think that it is that hard to believe?
Any suggestions on salary and bonus?
stop trying to hijack the damn thread. If you have a question then start a new thread, it's not hard.
Anyways, back to the OP....hmm, I'm guessing this is Stifel? If so, and considering you're coming out of undergrad, I think anywhere between 40-70K base could be expected w/ bonus of anywhere from 25-50%. Could be more, but I doubt it given the current market and the fact people are willing to work for peanuts right now. ER comp is highly variable depending on shop, location, experience, industry, the strength of your S&T team if applicable.
You were almost right on towards the lower end
You sure you want to be in Baltimore? There are other cities that will pay towards the higher end. But then you have just an undergrad and no industry knowledge. Internship helps, but the firms know there are a lot more people out there looking for jobs than jobs available. Take whatever you can get, and hope you get a large bonus at the end of the year.
if it is Stifel, If I am not mistaken, they have a very reputable research division.
Help with salary expectations. (Originally Posted: 05/25/2010)
I'm just curious as to what salary and total comp should be for a trader that would eventually (as soon as possible) be the senior trader at pretty successful mid market distressed debt fund now and maybe 2-5 years down the road. The person is two years out of college, and an analyst at a BB. Also, is a sign on bonus normal? Appreciate it.
The situation sounds abnormal to me so it would be difficult to say...Senior trader 2-3 years out of college? Unless this kid is a Brian Hunter pre Amaranth blow up I dont think he would be a senior anything and again comp is highly contingent upon the group's P&L and the trader's position within the group. I think comp would be in a wide range (200k - 600k) depending on performance.
Thanks. Anyone else?
Bump
agree with junk bond swap
Giving Salary Expectation? (Originally Posted: 03/24/2012)
Should I give a salary expectation on this application for a summer analyst at an MM or boutique? It seems its optional. I don't want to come off as uncertain and I'm not sure what salary I should enter. I'm also not sure what sort of salary is appropriate since this is also in Canada.
Negotiable
I don't believe that summer intern salaries are typically negotiable/flexible.
0-99999
http://www.youtube.com/embed/l91ISfcuzDw
Say nothing
If you feel you must write something, write "negotiable." I'm told that's pretty common.
Always say: Market Rate. Never put a dollar amount until the employer offers a number, then you can decide what to do with it (negotiate upward, accept or reject the offer). Never get low balled into a lower number. Most reputable firms will pay at a decent rate.
Exactly, if you don't know what the going rate don't shoot yourself in the foot. Negotiable sounds like you want to negotiate before you've accomplished anything.
I agree, that sounds better than negotiable.
Market Competitive.
One should avoid quoting the amount. It should be like "I am expecting a salary which reflects my credentials and the expertise that I bring to the role."
I hope this answer would help you.
salary expectations going from bb to no name boutique (Originally Posted: 02/27/2013)
.
those offers are terrible. Citi has offices in Miami, why not give it a try?
I wasn't aware there was any BB presence outside of Private Banking. Would you happen to have the contact of any banker there? If so, could you please PM me.
How do I answer the dreaded "Salary Expectations" question? (Originally Posted: 02/07/2014)
I've been sent a preliminary form to fill out for an upcoming interview/analyst test for a smaller IB. Of course there is the "What are your salary expectations for this position?" question on there.
What is the best way to answer this? I have no prior IB experience, but am an older, career switcher with a few years of other financial experience (PWM, Small business consulting/valuation). I don't even really know what a the average range is for analyst salaries, specifically at a smaller firm.
Any thoughts or suggestions?
Thanks!
50-70k with a discretionary bonus would be my best guess. Might be able to get a bit more base since you have some valuation experience.
If you can fill it in: "Market" If it is a drop-down selection or has to be numeric: "0" If someone asks in an interview: "Are you making me an offer?"
Only somewhat kidding on the last one.
"I am expecting $25MM+ per year , but can imagine working for a little less in ideal scenarios. Can I meet some of the younger people on your team?
Salary Expectations (Originally Posted: 11/11/2014)
Hi all, been a while since I've been on WSO :). I'm hoping to get some guidance re: salary expectations.
I'm interviewing with a financial technology company, Series A stage, around 100 employees, they're doing well. The role is in financial markets/business development in Manhattan.
I graduated from undergrad in 2010 and worked as an entry-level analyst in investment banking on Wall Street for two years. I completed the Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) programs during that time.
During the last two years, I've started several (ultimately unsuccessful) startups in Silicon Valley. The first was unrelated to fintech, but the current one is closely related to the job I'm interviewing for and it's fair to say I have deep knowledge in the field. I'm also a software engineer (I won't be doing a ton of that in this job, but the ability to understand and explain the company's tech is important).
What's a realistic salary expectation? For reference, my last year salary on Wall Street was $80k plus bonus. Is that a reasonable starting point? Can I ask for $150-$160k or is that too optimistic?
Thanks!
I think it has a lot to do with their overall budget being a smaller group. Overall, it sounds like you are more than qualified and should be a top candidate. But as far as salary, my gut says that's a bit high, but not too much. I'm thinking more like $115-130 range.
I think it has a lot to do with their overall budget being a smaller group. Overall, it sounds like you are more than qualified and should be a top candidate. But as far as salary, my gut says that's a bit high, but not too much. I'm thinking more like $115-130 range.
Help - Salary Expectation at Deloittle- gave too low an answer (Originally Posted: 10/16/2014)
Hello everyone. I am about to get into the third round of Deloitte interviews for S&O. HR said it would be a senior consultant role since I have two master degrees and 8 years industry experience. I have been at my firm for my whole career and they are known to low ball salary. When I was asked first round about my expectation I have an answer 13 percent above my current extremely depressed salary. I was worried that the large gap between market and my current salary would be an issue. My concern is that it appears my ask is about 50k below market for the job.
Did I hose myself on this or does Deloitte hr as a practice offer market? I am worried since this is a large chunk of cash.
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