Can I Negotiate Salary for Probationary Period?

I got accepted as a new grad by a long-only fund the other day but I'm not sure if it's possible to negotiate for better salary terms during the "probationary period."

Even though it's supposed to be a post-grad full-time role, the first three to six months is more of like an internship, or probation, and after that they would decide if they want to sign the formal full-time contract with me.

As for the salary during that probation/internship, I was expecting an amount to not be too off from my previous internship salary at a BB (let's say it was $X per month). However, the monthly salary I will be receiving from this long-only fund's probationary period is said to be $0.7X.

Actually, during the interview, a junior PM said the probationary salary would probably be around $0.6X and asked if I think it's too low while emphasizing that if I pass the probationary period, the base salary can definitely be higher. I responded by saying that $0.6X was a bit lower than what I used to get from the BB internship. After that call, a senior PM wrote to me saying that they would like to extend an offer to me at $0.7X.

I am going to have another call with both the junior and senior PM, which is a chance for them to address any of my concerns. I'm just wondering if I can negotiate for the probationary salary to increase from $0.7X to $0.8X or $0.9X. If yes, what would be a nice way of saying this?

Comments (3)

2mo 
marketimer, what's your opinion? Comment below:

1 - I've also got a prob period but at a more senior level. Could negotiate.

2 - I don't think you should because the current hiring market is tough. You don't want to mess up with optics and add a red flag at this moment.

2mo 
economistatheart, what's your opinion? Comment below:

I wouldn't unless you absolutely need the money to survive. You'll lose 0.9 months of pay and negotiating for an additional 0.3-0.6 months seems pointless. If anything, negotiate for a higher base.

That said, is this a common practice to pay a discounted base? My firm - does not (Large LO).

  • 1
2mo 
secondavenue, what's your opinion? Comment below:

Doloremque error impedit quis est consequuntur est. Et voluptas corrupti occaecati rem qui sunt voluptas aut. Rerum et numquam aut modi exercitationem aperiam veniam. Beatae maiores aut libero eum sint consequatur.

Start Discussion

Career Advancement Opportunities

March 2023 Investment Banking

  • Lazard Freres (+ +) 99.5%
  • Lincoln International (= =) 99.1%
  • Jefferies & Company (▽02) 98.6%
  • Financial Technology Partners (▽01) 98.2%
  • William Blair (▲10) 97.7%

Overall Employee Satisfaction

March 2023 Investment Banking

  • William Blair (▲04) 99.5%
  • Lincoln International (▲11) 99.1%
  • Canaccord Genuity (▲17) 98.6%
  • Stephens Inc (▲10) 98.1%
  • Financial Technology Partners (▲04) 97.7%

Professional Growth Opportunities

March 2023 Investment Banking

  • Financial Technology Partners (▲05) 99.5%
  • Lincoln International (▲01) 99.1%
  • Lazard Freres (▲14) 98.6%
  • Jefferies & Company (▽03) 98.1%
  • William Blair (▲02) 97.7%

Total Avg Compensation

March 2023 Investment Banking

  • Director/MD (6) $592
  • Vice President (27) $425
  • Associates (141) $260
  • 3rd+ Year Analyst (9) $194
  • 2nd Year Analyst (86) $170
  • 1st Year Analyst (264) $171
  • Intern/Summer Associate (45) $165
  • Intern/Summer Analyst (194) $92