IB Analyst Compensation
My son was lucky to get a few offers for Sum Int. IB positions. One of the offers pay overtime for hours worked above 40 hours a week. Still waiting to see the other offers, but is this common? Is this just for summer intern spot and not FT?
They are paying 1/2 the normal pay but if you work on the average more than 80 hours per week it is another $35K annualized. my understanding is all of the banks pay around the same for junior spots. Do the other banks make it up in bonus if they don't do overtime pay or do all of the banks pay overtime?
it's now my son instead of my friend
People are creative
if it were me, I would just say it is me. no need to hide and bs. it a simple question for people who know the answer.
Otherwise I'm rather confused, why would a snr in the industry need WSO for this info........
So my friend's friend's gf's brother's sister might have potentially received an offer to a BB (think JPM/GS/Citi/Barclays/BAML/CS/UBS) for either SA or FT sometime over the next few years; any recommendations would be great, is this normal?
By the way this isn't me, just posting as a concerned distant acquaintance, my username definitely implies I am a distance acquaintance as does my title as sr vp (first time poster too)
you are literally crazy. it is my SON, little chic. why in the h would i lie. if i were the intern i would just say it. there is no reason to misrepresent it and absolutely NOTHING to gain or lose.
Trying to be helpful here...
Standard for larger banks is 70 (or 72.5) K base salary for IB analysts. Bonus's are group and performance specific and can range from 0 in a (really) bad year to 115% of base salary in a stellar year with a lean team.
Standard for interns at large banks is to get the base salary of a first year analyst at the bank but calculated hourly based on a 40 hour legal work week. Of course interns work far more than 40 hours a week, which is why they can make so much in one summer. Laws governing overtime vary by region (in the USA it's by state, not sure internationally). In NY state many companies can get away with paying much less than the standard 1.5 and then 2.0 times base pay for overtime - often just paying 0.5 times base pay for hours over 40 in a week. While this may sound rough - these "kids" are still making 10-13K (or more...) in 9 weeks, so don't feel too bad.
Wilson, thank you. that is very good info. you are right on with the base. it is $70k. and they are paying 1/2 or about $16.50 per hour for hours over 40 each week. not complaining and i have told him it is not about the $$s at this point. more about getting into the right group/experience. thank you again.
Just looking at the numbers, 85 hours a week sounds typical (come in around 9, leave around midnight on average, with some hours on Saturday afternoon)
So if you work 85 hrs a week and get paid .5 base for OT in NYC (2080 work hours in a year):
40(70,000/2080) + 45(70,000/2080/2)=2103 for the week
2103 * 9 weeks = 18,930 for the summer internship. According to Wilson 1823, this drops to "10-13K" after taxes.
and that doesn't include a pro rated bonus. Also, would obviously be much higher for banks that pay 1.5x for OT.
Does this look about right to everyone?
advantages calcs are accurate. the positions are IB in NYC and have confirmed 2 major banks are doing this for summer analyst positions. the question is will they continue to do this when they go FT or will the variable comp be bonus based? doing crazy hours may be more palatable knowing they are being paid for the hours. kind of interesting.
OT pay varies for SA positions. Do NOT accept a position because of OT pay, unless there are literally no other deciding factors.
If UBS payed 1.5x OT and GS paid no OT, you'd make bank at UBS over the summer, but long term terrible choice.
totally agree. the banks' reputations are similar. and at this point in his career it would be foolish for him to make a decision based on the comp. It sounds like the OT pay continues if he is offered full time. it should make it a little more bearable (emphasis on little) to work the crazy hours knowing he is getting paid for it and not waiting solely on a bonus. thanks
Um.... no. No bank pays OT for IBD. At any BB/respectable MM, he will have a 10k signing, 70 base and discretionary bonus. Elite boutiques have variable signing (higher) and often 80k base. but never OT pay
WF pays 1.5x OT... at least they used to
Just to piggyback off of this, as an incoming SA at a MM bank my contract says I will get paid between 18-22 per hour and that overtime will be 1.5X this rate. Do summer analysts typically get paid for/officially report the overtime or are we expected to work those extra hours for "free".
The laws governing interns are different in different states. Could the internship be in California? We have weird compensation laws here, interns get paid a ton. Just a thought.
SA pay varies a lot but the standard is to pro-rate the full-time salary for a 1st year ($70k) + a relocation bonus (usually around $2,500 but varies). As mentioned above, interns in California might get significant overtime.
However, since SA programs are usually the best (and often the only) way to land a full-time offer, your son should make his decision based on his cultural fit within the group and his expected chance of getting an offer. That extra $5k - $10k in overtime will make 0 difference in the long run.
DB does this and I think BAML does this as well. This is normal - what are you concerned with?
Never heard of FT getting paid overtime since you're on salary
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