A2A - Direct Promote Benefits/Bonus/Etc.
Trying to understand what the standard practice is across the street (BB/MM/EB) regarding the A2A promote in terms of signing bonus, time off, promotion timing (2.5 yrs vs. 3 vs. 3.5), and pay bump timing. Have heard a few conflicting accounts within my own firm and others so trying to get some additional data points.
Found a few older threads on the topic but wanted to try and get some updated info given the changes that have taken place regarding promotions over the past couple of years.
Thanks for the help.
2.5 years, bump to 125k base, 40k signing bonus
MM. 2.5 years. Bump from $95k to $120-125k. Mandatory 2 weeks off during summer. No sign on.
MM. 3 years. Bump from $100k to $140k. Negotiated a $20k signing.
Standard at BB's is 2-3 years (some analysts are accelerated after two-years, some are extended the offer after their third year, Barclays is 2.5 years, GS is an exception given their new program).
Bump in base from $90k / $95k (2nd / 3rd year BB base) to $125k. Mandatory time off (2-4 weeks). Believe there is a signing bonus, but don't know the amount -- if helpful, MBA associates receive sign-on bonuses of ~$50-60k.
Also, though BB's are generally receptive to a two-year analyst promotion, my understanding is that this is not very common at EB's.
Moelis is the only exception I know of -- Evercore, Lazard and Centerview are all strict three-year programs (if I'm not mistaken).
From what I know - at least here in the UK:
JPM/BAML are three year programs on the summer bonus schedule.
MS/CS are three years on a winter schedule - not 100% sure on this.
UBS/Citi/Barc/DB are 2.5 years with a winter bonus schedule; An1 is 6 months and the Associate position is now 4 years (Ass0 is a full year).
GS is now a two year program on the summer bonus schedule, analyst 2 base is the same as the former analyst 3 base.
Summer schedule banks give out sign-ons.. not sure on the others.
As for bases:
street is $85k > $90k > $95k > (promo - Ass0) $125k > $150k (Ass1) at BBs in the US
street is £50k > £55k > £60k > (promo - Ass0) £80k > £90k (Ass1) at BBs in the UK.
For PS values above, how much would that be after tax? (curious about tax rates in UK)
You can just run the numbers through a tax calculator, https://www.uktaxcalculators.co.uk</a">like this
Private Equity (Real Estate) Analyst to Associate Compensation Expectations (Originally Posted: 01/28/2018)
Any thought on this is much appreciated! I'm currently an analyst at a real estate private equity fund between (500M and 1B AUM). I know/have seen compensation reports for regular PE, but these surveys are only reflective of the mega funds and do not break it down by sector (at least I believe). What kind of raise should I expect if my current compensation is 75k base / 20% bonus / 90k all-in. Adding on, I do not know how much the more senior associates/analysts make at my company. Do you think it would be okay to ask them what I should expect to make in a few years? I have yet to ask because I am not close enough with any of them and am under the assumption I should not be asking co-workers these types of questions. My assumption/hope is to at least receive a raise in 2-4 years up to $130K all-in?
Hi ILikeCommercialRealEstate, just trying to help:
Real Estate Forum Resources
Any pros willing to rescue this discussion? tomhooper apeon Anthony-Irwin
I hope those threads give you a bit more insight.
Houston Banks: Which are known for direct A2A (analyst to associate) promotion? (Originally Posted: 01/02/2014)
I know most bankers would go to the buy side after two years if given the chance, but I'm recruiting at a bunch of (mainly Houston) banks and want to keep my options open if I decide banking really is for me long term. However, I do NOT want to waste two years to go back and get an MBA. Which banks (specifically the Houston branches) are the most open to analyst -> associate promotions?
I'm not 100% sure, but I think that direct A2A doesn't exist in that form anymore.
Fairly sure most of the BBs have programs now where you can go directly to associate if that is what you want. I am positive that GS, MS, and CS have this - would venture to say most others do as well. Any bank would eat their left foot for more A2A promotions
Almost all of them will do it if you are good and they think you have client facing potential.
Handling The Analyst To Associate Offer (Originally Posted: 02/09/2017)
Here's the fact set: -Got an associate offer after two years -Love the shop; middle-market with great team members and deal exposure -Don't want to lose leverage in employment terms due to the fact that I like where I am at -Proposed base is great and pretty tough to negotiate (no cost of living despite being in SF) -Absurd non-solicit that I've already talked down -No signing bonus which is my big issue; is this common for developed analysts or should it be treated the same way as MBA Associates?
Any useful suggestions/strategies/questions/comps would be appreciated.
Bump. Are there any real IB people on here?
I have never heard of direct promote getting a signing bonus (not saying it doesn't happen, but I have never heard of it). As a matter of fact, pretty much every one I know that got a direct promote complained about kind of getting screwed vs. MBA hires as the stub bonus they get is way lower than what the new hire a getting (signing bonus + end of year stub bonus).
I thought non-compete / non-solicit weren't enforceable in California???
I'm based in SF, and have heard this word for word.
.
Thanks for the laugh.
Analysts at my bank collectively talked management into signing bonuses for A2A promotes, but it took a while, many people, and did not exist for a while. Be careful how you approach it, but essentially their case was "you're taking someone who has proven over 2 or 3 years that they produce high caliber work, and are choosing to pay people who have not really proven that they can cut it much more."
I would not consider an IB Associate signing bonus to be a "relocation bonus"... Way bigger than any relocation bonus I've heard of.
Thanks; I like the rhetorical approach.
You also got the same job without dropping $120k on tuition - so there is that.
Plus 2 years of opportunity cost.
Bulge A2A, got $40k-$50k signing outside of normal bonus. 1 year lockup
Slightly less than MBA, They got that plus $10k relo
Received an A2A at my BB. Turned it down but it was the same contract as a normal associate offer. You should get the sign on.
It is actually pretty standard on the street for A2As to get the sign on. I'd definitely push HARD on it
OP is it banking or PE?
bb, the associate offer is as follows (assuming you summered there as well) 1. early sign 2. signing bonus (clawback prior to 1 year) 3. stub in jan-march (depending on firm)
all a2a get 2 and 3, you're not going to get 1 because of the circumstance. it is entirely normal to get the signing bonus.
Bulge Bracket Trading Analyst to Associate in 2 years (Originally Posted: 05/04/2013)
Just a quick question about progressing from analyst to associate in 2 years at a bulge bracket firm
Are certain organisations in the bulge bracket known for this progression more than others?
Are certain trading desks better than others to acheive this? In general and also in terms of the importance of the desk to the firm.
Thanks.
2 years.... isn't it 3? I'm interested in the question above too.
It happens yes, in London at least. I have heard of several people who were promoted after only 2 years, at different banks, BB and MM. The promotion has more to do with you than the bank I would say, it depends on how you perform and if they judge you ready.
I'm not a 100% on this, but I think Citi's S&T program is Analyst to Associate in 2 years (and if you don't get the promotion then that's their way of asking you to pursue other opportunities).
Citi have 2 years of four six month rotations, then you join a final desk of your/ their choice for another six months and get promoted (typically).
Some firms have a reputation for doing it more than others, however I don't know how much truth there is to that.
It's definitely doable. I know people who have done it in 1 year, and 2 years is pretty common. It is not very desk dependent, as long as it is a trading desk. I think in sales doing super-fast promotions is less common.
The way it goes is candidates are proposed and there's a group that decides who gets promoted and who doesn't. It's more about having someone senior in the desk who will go bat for you, than the actual desk you are in, so if you have a senior MD who is Head of something relevant saying you should be promoted you probably will. It probably helps if there are no associates on the desk as well.
This is incorrect for S&T at Citi. It's a 2 year program with 2 one year rotations. If you work hard and are smart and perform well, you should be in a good place to get an associate offer. Usually it's not a case of whether you are smart or not, it's more about getting "comfortable". Do NOT take your foot of the gas.... Ever.
Citi promotes roughly 60 percent.
Transition from Analyst to Associate (Originally Posted: 02/14/2017)
I'm a first year acquisitions analyst at a small family REPE firm where I also perform some Asset Management duties. Generally, what qualities must I possess to transition into an associate role?
Honestly, I think the biggest step is knowing what needs to be done with less hand holding. I assume an associate is capable of putting together and potentially running a deal while an analyst still needs a lot of direction. In general, I find titles in RE to be pretty meaningless though and I'm sure there are analyst out there who can take a deal through closing on their own.
If you can put together and articulate an investment memo, accurately model a deal, understand structure, and understand how a deal is documented I would say you have progressed beyond the analyst level. I'm sure others will have a different opinion.
Makes sense. Thanks, that helps a lot. I have exposure to just about every facet of our business but it will take more time to fully grasp and understand each. Most of the structure and financial modeling I do only needs minor tweaks by my director, but the unforeseen AM issues and transaction process will take more experiences before I'm fully comfortable.
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