Jefferies Pay

126 Comments
 
ke18sb

pretty sure jefferies had the best bonuses on the street.

Couldnt that have been attributed to the fact that they wanted to pay back employees ENTIRELY in cash for the 2012 year before the fiscal cliff tax effects on capital gains/dividends kicked in to keep bankers happy?

http://www.forbes.com/sites/afontevecchia/2012/12/11/forget-special-div…

Same reason why Costco did the $3.5B leveraged recap for a HUGE 1 time special dividends led by Guggenheim or Goldman (i forgot which bank read it online earlier that month) to pay back shareholders with 'more' $ so to speak as it would be taxed at a lower rate (article mentions other key companies following the same strategy back in December), and to pay back themselves (themselves being the BOD and management at the same time).

I could be wrong, but i figured this had to be a reason for them paying the employees more $ instead of giving them partially in cash and the rest in vested equity.

Correct me if im wrong however, and i very well might be- so no offense taken...

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
 

from the people who I know at Jef, they all seem to be very happy with their pay but when it comes to actual deal flow or live transactions, they seem to not be very happy. Maybe its because they are in the wrong teams, I don't know.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA
 

Dealflow at Jef is very group dependent. A lot of groups get crap dealflow. Healthcare, on the other hand, absolutely kills it and probably gets best deaflow within the HC industry.

 

To add to my comment above, Jefferies is a great firm from what i've seen. Had several rounds of interviews with them and they seem to be very very down to earth people and individuals that are genuinely happy to be @ Jeff. I know people there from the analyst level to MD and all are super friendly from my experience (LA and SF office).

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
 

Thanks @JustADude. So they didn't increase 2nd/3rd year base pay? I also understand that all analysts are on summer bonus schedule and then move to calendar year bonus schedule at associate - is that right?

Thank you.

 
Reeze

Thanks @JustADude. So they didn't increase 2nd/3rd year base pay? I also understand that all analysts are on summer bonus schedule and then move to calendar year bonus schedule at associate - is that right?

Thank you.

They did increase it. Before it was 70/80/90, now it's 85/90/95. Bonus is still calendar year for associates and above unless they changed something. I think GS is calendar year but most others are still summer schedule.

 

A lot of bad information on this thread... It's important to note that their Energy group has a separate bonus pool from the other bankers so their pay cannot be compared apples-to-apples with pay across the firm. They along with Healthcare also had incredible years with respect to fee generation so it isn't accurate to make a blanket statement overarching pay across the entire firm. I know people their who got paid really well and others who left because they got screwed.

xoxo

[quote=Dirk Dirkenson]Shut up already. Your mindless, reflexive responses to any critical thought on this are tedious. You're also probably a woman, given the name and "xoxo" signoff, so maybe the lack of judgment is to be expected.[/quote]
 

I have a friend at Jefferies and he told me it's like this. The news of comp at Jefferies is blown out of proportion. As analyst your salary is in line with market, so are most mid-level positions. Upper level positions are slightly above market. One of the big misunderstandings about Jefferies is not about high compensation, but that they pay their employees in straight cash which makes it attractive to many people.

Array
 
TeddyTheBear

I have a friend at Jefferies and he told me it's like this. The news of comp at Jefferies is blown out of proportion. As analyst your salary is in line with market, so are most mid-level positions. Upper level positions are slightly above market. One of the big misunderstandings about Jefferies is not about high compensation, but that they pay their employees in straight cash which makes it attractive to many people.

This is especially pertinent for bankers at the upper Associate levels on through MD... you would vastly prefer getting 100% cash than getting 2/3 of your pay in stock with half of that stock not vesting for 3 years... Unless you know you are going to work there for 20+ years and the options will appreciate in value...

xoxo

[quote=Dirk Dirkenson]Shut up already. Your mindless, reflexive responses to any critical thought on this are tedious. You're also probably a woman, given the name and "xoxo" signoff, so maybe the lack of judgment is to be expected.[/quote]
 

Curious, would the bad bonus for analysts apply accross the whole firm or only the groups underperforming? It seems ufair that a group with strong dealflow/revenue generation would get hit by the overall poor performance of the firm, but i guess that is a risk that comes with working for public IB's.

 

Correct me if I'm wrong, but aren't Analyst bonuses typically much less volatile (i.e. less dependent on the performance of the firm). In a year where VP's/MD's get 0 a first year Analyst might get 45 and in a year where VP's/MD's do well a first year Analyst might get 75 right? It should never be the case that an Analyst at a large firm gets a 0 bonus right?

 

I agree with JWR34... Given that analysts are essentially commodities and not directly responsible for revenue generation, shouldn't pay be basically the same across the BBs (and decent MMs like Jefferies)?

Also, has 2011 really been such an awful year for IBD groups?

 
blackopsmonkeyI agree with JWR34... Given that analysts are essentially commodities and not directly responsible for revenue generation, shouldn't pay be basically the same across the BBs (and decent MMs like Jefferies)?

Also, has 2011 really been such an awful year for IBD groups?

I know that at least for UBS while VP/MD bonuses have been low over the last several years top bucket analyst bonuses have been consistently high relative to other places (2011 according to dealbreaker was 65/80/105 for top bucket analysts in each year).

I don't think 2011 has necessarily been such an awful year in terms of fees (really just flat). In Jefferies' case their stock has just gotten murdered ever since MF Global went down and management doesn't want to be seen paying bonuses when the stock has performed so poorly.

 

No they do not. Friend working there told me no. And by friend I actually mean friend and not code for myself.

"Money is a scoreboard where you can rank how you're doing against other people." -Mark Cuban
 

i don't think any other banks offer housing stipends... i mean there's a 2k 'signing bonus' for most banks if that's what you're referring to.

 

They really need to stop calling this a bonus. It is deferred comp and analysts and associates worked a full year with the expectation that they would get a chunk of their income in the back end. Instead they took it in the backend.

Any perspective monkeys should start trying to apply to Jefferies. I would imagine there will be openings at the junior level.

 

DB comments are the absolute tits.

"Those that did get a bonus were given peanuts."

Are they gonna screw you guys over with the generic brands too? I remember the years we used to get Planters...

I am permanently behind on PMs, it's not personal.
 

Haha ^^ Yea I saw that. Well IBD took a bonus hit haha... I mean i wonder what GS numbers will be.

I want a lady on the street, but a freak in the bed, Go Bucks!!
 

If I'm not mistaken, Jefferies is known for giving mostly cash bonuses at the senior levels, which is very rare (most firms give bonuses in restricted stock so there's incentive to stay). This seems to just be a deviation from that, saying that if you want to take straight cash instead of stock, you better stay here. Sucks, but it seems to be more of reverting to what the rest of the street does than anything to be concerned with.

The Dealbreaker quote saying that VPs and Associates got pretty much nil, however, is cause for concern if legit. Then again, shouldn't really affect analysts.

That's just my two cents, though, not really sure what to make of it.

 

See also:

DealBreaker

“Not that I like to keep this train rolling after the Jefferies announcement but it’s been circulating around the floor that 2/3 of Global Credit Products will not be receiving bonuses at Credit Suisse this year. Bank loans and HY will like be in top 1/3, bonus-receiving part of the audience. Investment grade, MBS, and specific underperforming people will likely be in the bottom 2/3.”

“Millionaires don't use astrology, billionaires do”
 

Man, I can't imagine being a VP or associate and getting $0. I really hope I was smart with my money and could just say fuck you and bounce.

 

Be right back...sending an application to Jefferies.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
xyz12345who would buy them?

Don't think it would happen but:

1.) They could be bought by Wells Fargo, who wants to strengthen their Investment Banking Practice.

2.) They could straight merge with UBS, who potentially wants to get rid of theirs.

Not sure Jef would realistically be the play for either of these guys though. This sort of inter-bank action was major speculative talk like a month or two back.

“Millionaires don't use astrology, billionaires do”
 

Why is it all about comp? We're not entitled to anything. I for one accepted a job at a new exempt market dealer instead of another at an investment bank. Base comp is shit when compared to BB's but i will actually get broker shares & warrants on deals that I work on. In addition, I's a better learning opportunity than working at a big BB, cuz I'll get to do EVERYTHING. That means, all the front office stuff AND compliance, etc. Meeting with high net worth investors AND issuers.

You guys have to chill out with the salaries.. If you're happy and good at what you do, the money will come, and you'll be WAY happier..

 
Back That Asset Upbut still second tier interms of prestige and exit opportunity. pays street or very close to street.

You have by far the most creative name on here man.

 

My friend who worked there hated it. I mean hated it. Low pay, no respect, small deals, and the upper management treats you like shit. Extremely high turnover. I'd try for somewhere else if possible, if not....why are you worrying about the $$$?

Reality hits you hard, bro...
 

I wouldn't put too much stock in it. most senior guys don't realize the base has increased. All the guys I have spoken to are shocked that the base in know 70+10 when they started at 55K only a few years ago.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

What city? Unless we're talking middle of nowhere Kansas, that's definitely too low/wrong.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

Knew a guy at Jefferies in NY (now at a MM PE firm) who def. made more than $60K base.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Wait wait wait...did you ask about comp in your first round phone interview....?

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

If its 50K in NYC they better be eligible to get paid overtime!! lol

You give me a gift? *BAM* Thank you note! You invite me somewhere? *POW* RSVP! You do me a favor? *WHAM* Favor returned! Do not test my politeness.
 

I know this post was from five years ago, but things haven't changed much!! I interviewed over there for an associate position in FIG. Let's just say, I was completely underwhelmed. They just seem like they're in no-man's land. Who comes out of school thinking, man if I can only get a job at Jefferies!! Can't say it's much better from the client's standpoint.

 

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