Super specific question but might consider doing a third year and not do the A&A promote my bank while looking for buy side roles. Does anybody know what my pay would be at this level? Would I be paid the same as an analyst 2 or as a first year associate?
This bank only has a 2 year analyst program. I know that I can always ask but I don’t want to cross that bridge until later.
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Based on the most helpful WSO content, if you're considering staying on as a third-year analyst without taking the promotion to associate, your compensation would likely be more than an Analyst 2 but less than a first-year Associate. Here's a breakdown based on the information available:
Third-Year Analyst Pay: While there isn't a standard for third-year analyst pay since most banks have a 2-year program, it's common for third-year analysts to receive a bump in salary compared to their second year. This is to incentivize them to stay on for an additional year, especially if they're strong performers. However, the exact figure can vary widely depending on the bank and the market conditions.
Comparison to Associates: Even though you'd be a third-year analyst, you wouldn't be receiving the full compensation of a first-year associate. Associates typically have a higher base salary and potentially larger bonuses due to their increased responsibilities and the fact that they've usually gone through a promotion process or have an MBA.
Negotiation: If you're a top performer and your bank is keen on retaining you, you might have some room to negotiate your pay for the third year. This could potentially bring you closer to the lower end of the associate pay scale, but it's unlikely to match it completely.
Market Rates: It's also important to consider the current market rates and economic conditions, as these can affect salary levels. Given that you mentioned the bank only has a 2-year analyst program, they might not have a standard protocol for third-year analyst compensation, which could work in your favor during negotiations.
Remember, it's crucial to approach this conversation with your employer tactfully, especially if you're considering exit opportunities. You don't want to signal your intentions to leave prematurely.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/goldmans-new-policy-for-investment-banking-analysts-3-reasons-why-it-wont?customgpt=1, Questions about Analyst to Associate promotions, Buyside as an A2A Promote, Q&A: 3rd Year Private Bank Analyst, MBA vs direct promotion
Just take the promo if they offer it?
Probably won’t be offered. In a bit of a weird spot with trying to balance recruiting and A to A
Why would they pay you an associate salary when you are not
So would they pay me 2nd year pay even if I’m not a 2nd year?
If it is a two year analyst program and they are not going to promote you to associate, then you will be expected to leave at the end of the two years. In general, banks structure these as contracts and you will not be fired, but your contract will "be up" and you'll just leave unceremoniously. They will not keep you as a "non promote" analyst.
So to answer your question, they will not pay you at all.
None if this makes any sense. To confirm, are you a second year investment banking analyst at a well-known and reputable firm?
In my experience, there are no special arrangements like you seem have in mind. You are either promoted or asked to leave. If the analyst program is three years, I guess you can remain. If not, you'll either become an associate or you'll work elsewhere
I am. This was discussed with me that if A to A is not into consideration then a 3rd year would be an option while I look for other opportunities.
Wow. Ive never heard of anything like this.
If the analyst program is 2 years, i'm sure many people will ask why you were not promoted.
also, remaining an analyst while your classmates become associates might be tough. Imagine getting arbitrary deadlines and markups from some guy from your bullpen
What was your bump between 1st and 2nd year? That is what is will likely be - nominal bump, 5k maybe 10k if they're generous
No one is going to pay a 3rd year analyst the same as a 1st year ASO - yes, you're doing the exact same work but if you intentionally avoid getting promoted to help with recruiting, you are forgoing the pay bump too.
Disagree with others on this though - 3rd year analyst is a pretty common arrangement for people who want to stay short-term to recruit. 3rd years usually leave within 6-8 months, never seen one stay on for ASO. If your seniors are decent and understanding of you wanting to switch to PE, they will usually work with you.
This is the case at a few EBs
140k base at my UMM firm.
My firm also has a 2 year Analyst program but there is a step between Analyst 2 and Associate 1 called Associate 0. Associate 0 is equivalent to Analyst 3 and pay is $150k. Our pay progression from Analyst 1 to Associate 0 is $110k, $125k, $150k. If your firm has an Associate 0 level then you would probably sit in that level so you would get the Associate promotion but it is treated like an Analyst 3 and different from getting the A&A promote which would go from Analyst 2 to Associate 1.
Interesting. I’m curious if I would sit at associate 0 even if I don’t do the promotion.
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