What exactly is front office in its strictest definition?

Forgive my ignorance but I'd like to argue that analysts in IB are technically not front office since they are in the "back" working with models supporting the VP and MD that are dealing with clients to generate business.

Traders arent front office if they are executing orders that come into the floor due to the salesman ship of a sales guy who called up a buy side firm and pitched and sold an idea. That trader is just pushing a button to make things grossly simple.

However a prop trader is making decisions on his own, his own actions produce revenue for the firm. So he is technically front office.

Financial advisors in PWM must prospect and earn clients and sell them products and thus generate revenue for the firm.

I'm realizing that those closet to the money or making the most money are truly client facing and not supporting the guys in anyway.

I think that everything really comes to sales a majority of the time, and anything else you're supporting that person

 

Value/fee generating.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

But value is subjective in that an analyst might be paid 100k but its hard to pin down that his work actually added more than a 100k in value to the company.

 
Best Response

Agree with Oreos with a couple thoughts to your post:

(1) Anyone in coverage or product in IBD is definitely front office, incl. analysts. Analysts do come to client meetings and help handle client interactions, though generally at a more basic level. While ultimately VPs and above are expected to drive revenue, they aren't the only part of the client machine.

(2) Traders decide the risk position of a firm including what to target to buy/sell from/to clients; they also are primairly charged with structuring trade ideas and actively hedging positions. Yes, client relationships are "owned" and maintained by the sales force, but sales also works for trading (ask a sales guy who decides how sales credits are paid). Both meet with clients, both develop trade ideas and both are certainly are fully front office; there is admittedly a careful partnership here between the two to get it right.

 

Deserunt impedit pariatur corporis magni repudiandae sapiente deleniti. Rem in ipsum unde dicta voluptatum voluptatum eveniet. Vel quam voluptas voluptatum placeat alias dolore voluptatibus non. Facilis aut magnam accusamus et voluptas sed.

if you like it then you shoulda put a banana on it

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”