Does anyone have intel regarding packages that are offered to downsized employees? It may be a pipe dream to think that people at the analyst/associate level will get any sort of comp on their way out the door, but I could see banks offering two weeks for every year at the firm or something similar. One of the VPs in my group who survived the Media Telecom massacre early in the decade seems to think analysts and associates were given a few months salary on their way out, but he did not have specific information.
Also, are downsized employees given any notice before they our out, or are they immediately shown the door? I could see some firms giving a two week heads up before you are out, but more likely you are gone as soon as the pink slip hits your desk. I would probably just spend the remaining time interviewing anyway.
I know someone who was a 1st year at Dresdner when it shut down its offices in the U.S. I think he got something like 2 or 3 months pay even though he had only been there for a few months.
what I have heard is about 1 month worth of total comp, per year of service -though rounded up to the nearest whole month.
a friend of mine was shifted out of a BB IB and got about 2 full months of total comp afer just over a year... somewhat confirming the heuristic method.
1 month per year of service with big bumps for titles above VP, which I assume does not apply to your question.
Also had a first-year friend at Dresdner - he got three months pay and some very active assistance in finding a new job (he was at Lehman IB within two weeks).
While outside of IB, in 2001 McKinsey made an offer to the majority of its West coast hires for six months of pay in exchange for "rescinding" the offers they'd previously accepted. Since this was driven by the broader economic downturn, however, lots of kids who took the package still had a really tough time finding new work.
Layoff Package - Enlightenment (Originally Posted: 10/19/2008)
Can any one enlighten me on first/second year analyst layoff packages? NYC-BB-IB Is it three months salary and benefits (health,life,etc)? For first year analyst,is it most likely that there is no required payback of relocation/signing bonus? Any help offered with new job hunt?
Thank you.
In May for me, it was 3 weeks, accrued vacation and full benefits. Sucked, but I started new job a month later. So no pay missed.
try 2 weeks.... 3 months maybe if you worked there for 10 plaus years
BB, NY. Lots of first years got the can. Those who finished their first year got their bonus, and 10 and a half weeks severence with full benefits.
thanks for the responses. seems like there is no real standard. this is quite frightening considering being locked into a lease, etc. imo, seems like that delete button will be pressed again many times over, by year end.
with one bank already confirmed changing their policy to stub-bonus in dec 09 for class of 09 analysts. wonder if others will follow this year.
only 2-3 weeks sux if given to FT hire! Geez..
Which bank are you referring to?
Can someone explain this change to stub bonus in december for the class of 2009? Thanks.
My BB does stub bonus but this is applicable to the ST/ER kids don't know if this is applicable to the IBK analysts.
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