An3 / Aso0 Confusion

Incoming SA at a MM in NYC

My bank seems to have a 3-year analyst program (An1, An2, An3, Aso1) vs the 2-year A2A program many banks have. 

Trying to understand how this works in practice. I've seen that An3 base/bonus is only marginally higher than An2, but this seems unfair when compared to banks that allow you to go A2A after 2 years. 

Also curious how this impacts lateraling. If someone is An2 at a bank with a 3-year program, can they lateral to a bank with a 2-year A2A and get promoted faster, or do banks usually make you redo a year or do an An3/Aso0 split?

Main thing I’m trying to figure out is whether this is actually a big economic downside if you want to stay in banking. Feels like there could be a meaningful gap if peers at other banks are getting Aso1 base after 2 years, while you’re still An3.

Anyone been through this or seen how groups handle it?

14 Comments
 

From what I’ve generally seen there’s no truly 3 year program. Analyst bonuses typically are paid out in August, while the rest of the bank gets paid theirs in Jan/Feb/March.

After your second analyst year, you’re an AN3, and then you get promoted to ASO1 (and stub/A2A bonus) ~5-6 months later. It’s really just a 2.5yr program and it realistically exists to just get you onto the normal bonus cycle.

 

imagine ASO0 as the exact same as AN3 but with a different title a few more k in the salary ( very small difference)


Nothing else changes - you’re typically also staffed as an analyst 3. Aso 0 it’s not what you’d consider as A2A


The way it worked at my bank was 

A1-A2-ASO0, then at the end of the 3rd year (basically after 1y of becoming aso0) you have a stub period or 6 months and then you become A real associate (with the relevant stub bonuses etc) 


Nothing changes / i wouldn’t overthink this at all it won’t make any difference for your career unless you want to mentally mast*bate to the associate title 

 
Most Helpful

If this is HL then it’s a true 3 years. Can’t remember the pay scales at this point but for analyst it’s something like 110, 115, 120. Bonus was probably something like 65, 75, 85. Those are probably +5k at this point but that’s where I was.

Then you’re an AS0 (at HL AS1) at $175k for 8 months (Mar fiscal so Aug to Mar) and stub $75k bonus. Then you stay at $175k and it bumps to $200k the following March when you’re an ASO 2 (at HL ASO 3). You’re eligible for promotion to VP after 2 years and 8 months so after the end of your second full year as an associate.

Associate pay ramps pretty quickly thereafter… idk about prior years or all groups but we got 100% of base this year so pretty strong for an ASO1.

HL’s promotion ladder used to be long AF. They shortened it recently, but still longer than other banks. I would say most banks will make you reset a year regardless when you lateral unless you’re switching to something directly applicable. They are gonna wanna juice you at a cheaper rate for a little while and train you up if it’s a new sector/product.

If you’re committed to banking and enjoy your current seat, the lateral for an extra couple thousand isn’t really worth it if you do the compounding math. Generally speaking, I would never lateral for money if your group has good deal flow and a good culture… the money will come and you’ll enjoy your life more. That extra money comes at a cost.

 

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