Recently heard from someone in the know that all in comp in ER/S&T is expected to be down 10-20% this year at my firm (big MM). This is a tough pill to swallow but I guess to be expected with poor volumes. Moreover, 2 senior associates have recently been laid off for dubious reasons. I'm starting to think that the senior/experienced ER associate position is the walking dead. Why pay an associate 150k+ when there are less experienced people willing to work for 1/2 or 2/3 the amount? Of course the analyst will be furious but they should just be happy to be employed in this market. Has anyone else seen a similar trend or heard early comp expectations?
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No layoffs here. Comp is down from historic peaks (of course) but overall I think my firm is doing well. No bonus guidance yet, but I am cautiously optimistic.
But I do disagree that layoffs are likely for experienced associates. Ok, so they are making $150k to $200k. But they are almost as able as a full-fledged analyst, and may often cover some smaller companies. They are a comparative bargain compared to a recent grad ( maybe $100k all in), who has to be taught how to update a comps sheet. If anything, I would expect new grad hiring to slow, and for experienced associates to be offered incentives.
Layoffs are across the board from the MD to analyst. Over the past few years I've seen entire teams be let go. In the end this is all a P/L game. Yes the senior associate may know what he is doing and yes he might be covering a few small caps but he can be replaced. The companies the associate covers doesn't matter if the flow isn't there and new associates are smart enough to pick up the bulk of the day to day work after going through 1-2 earnings seasons. Banks won't forgo analyst recruiting unless something drastic happens (i.e. UBS) and they won't let go of the covering analyst unless they wan't to cut the entire team and they poached someone else. I believe experienced associates are in the cross hairs if there is another round of layoffs. I know from personal experience that my class and the class below me has been decimated over the past few years and I don't expect it to be any different for the medium term.
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