What bonus can you expect for a mid-market IBG Associate position?

I was recently offered an Associate position out of grad school at a mid-market IB for M&A. They indicated the bonus will be competitive and significant, but didn't really give an indication as to how much that would be.

Any ideas what I could expect? 25, 50% of salary? More, less?

 

It's entirely dependent upon deal flow, deal size, headcount, expenses, etc... If you work for a small shop that closes just a couple of deals per year your bonus could fluctuate pretty dramatically. It may only take one or two decent size deals to cover the firm's fixed costs for the year. Any other deals that close beyond that are simply gravy and your bonus increases at a parabolic rate.

IMO, for a reputable shop in an average year you could expect somewhere around 40-50%.

 

$80k actually seems a bit low, but I know some places have restructured the way they pay out total comp...but location and culture factor in too. Depending on what market you are in, I would think that your bonus should be 100%+ of your base. I mean, I know a 3rd year analyst that makes roughly that much at a similar size/focused bank.

Did you get much of a sign-on bonus (if you don't mind sharing)? I will probably be going to business school next year and will likely end up doing the associate in IB path, assuming I can't find what I want on the buy side...so I just want to have an idea of what to expect.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

Thanks for the insight guys. I think I am still going to take this position over a non-IB offer that I also hold. Ultimately, that is what I want to do.

I come from a non-target with a non-business undergrad degree and worked in Supply Chain pre-MBA. I wasn't expecting to hit a home run since my only relevant finance and IB experience is through a recent internship. It probably helps that the city is far cheaper than NYC and cheaper than Chicago for cost-of-living.

I'm hoping I can at least pull around 75% or so of the salary. The MD did tell me they would be very competitive on that front b/c he doesn't want me to bolt after a year or two. Then again, they probably all say that.

Again, appreciate the responses.

 

Dolore harum aut sapiente quod quod laudantium quas. Aut quia et qui consequatur veritatis impedit. Velit ullam culpa totam ullam.

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