So what do you guys think? Fees have been revived a little bit in the LTM, particularly with the huge deals in Q1'13. Are we going to see an increase from the weak bonuses of last year?
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Well if you're UBS, probably going to cut your first years a week before bonuses so doesn't really apply.
In all seriousness (I was only half joking above) it all depends on group.
Not sure that top-bucket analyst bonuses are that group dependent or even that bank dependent. So often the banks want to stick to "street level" bonuses, that, at least for top-ranking analysts, the numbers are fairly similar, maybe 5-10k different. I agree, though, that at associate and above and even mid to low bucket analysts there's significantly more group and bank dependent variability
To clarify - if you're in Barcap municipal finance vs M&A, there will be a noticeable difference in average numbers. Top bucket will be top bucket, but only the top couple analysts even make it there.
The compensation consultants say pay will be up a tad this year, but analyst bonuses are always tough to predict due to the random rounding to the nearest $5k.
Agreed, but generally people reference top-bucket numbers when comparing bonuses across years
True, but that's a pretty misleading measure, to be honest. A lot of firms are propping up their top-bucket bonuses to match the Street, but making up the difference by cutting the lower-tier bonuses and decreasing the number of analysts that receive top-bucket pay. But I guess no one is shopping firms based on the mid- or low-tier bucket, even though that's what most of them will be receiving.
I can't speak directly to the reasoning behind the practice, but I was told by a trusted friend that works for a sizable IB that something similar was going on at his bank. Essentially fewer people were getting top bucket and then the spacing between the other buckets was spreading out a bit and the folks in the bottom bucket were getting significantly less than the bucket above them...as opposed to years past were it might have just been $5k or $10k, it's more likely to be $15k or $20k.
Regards
That's correct. Ranges are much wider than they used to be. $20k is an understatement at some places.
Piper Jefferies pays all analysts the same. Around $100k for 1st years.
now that jefferies is getting more legit we need a new way to shit on piper jaffray
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