9/9/10

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!

Comments (45)

9/9/10

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..

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9/9/10

I defer until they basically demand it. Usually, a nicer version of "my expectations are to be paid what the job pays".

9/9/10

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.

9/9/10

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"...

- 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

9/9/10

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.

9/9/10

I think a good way to respond would be as follows:

"In terms of compensation, I'd be willing to entertain a competitive offer."

9/9/10

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.

9/9/10

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.

9/9/10

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.

9/10/10

Thanks again everyone, you were all really helpfull. Beers on me!
ThaVanBurenBoyz - I've had two previous SA stints

9/10/10

Just out of curiosity how are they offering you an associate role? Do they not have analyst level? Or are you just really special?

9/10/10

Aren't equity research titles flip flopped. So you enter as an associate and move up to analyst.

9/10/10

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

9/10/10

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?

Smokey, this is not 'Nam, this is bowling. There are rules.

9/10/10

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.

9/10/10

You were almost right on towards the lower end

Smokey, this is not 'Nam, this is bowling. There are rules.

9/10/10

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.

9/10/10

if it is Stifel, If I am not mistaken, they have a very reputable research division.

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9/10/10

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.

9/10/10

Thanks. Anyone else?

9/10/10

Bump

9/10/10

agree with junk bond swap

9/10/10

Negotiable

9/10/10

I don't believe that summer intern salaries are typically negotiable/flexible.

9/10/10
asiamoney:

I don't believe that summer intern salaries are typically negotiable/flexible.

Hmm, so what's the best thing to do? Say nothing or say something else?

9/10/10

0-99999

9/10/10
Boreed:

0-99999

0-10MM

9/10/10
9/10/10

Say nothing

9/10/10

If you feel you must write something, write "negotiable." I'm told that's pretty common.

9/10/10

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.

"I am the hero of the story. I don't need to be saved."

9/10/10
sxh6321:

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.

9/10/10
sxh6321:

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.

I agree, that sounds better than negotiable.

9/10/10

Market Competitive.

"For what shall it profit a man, if he shall gain the whole world, and lose his own soul?"

9/10/10

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.

9/10/10

those offers are terrible. Citi has offices in Miami, why not give it a try?

9/10/10

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.

9/10/10
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9/10/10
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