I am a senior in a BB firm (think vp/director), looking to lateral into another firm (most likely another BB) for the same role. I am curious for those of you guys have done this in the past, what would you typically expect in terms of a % premium from your total comp to make the move? I am curious what is the norm or what people will normally expect to get minimum in order to justify the move since obviously there's always risk involved in moving.
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Based on the most helpful WSO content, lateral moves at the VP/Director level within BB firms typically come with a compensation premium to justify the risks and effort involved in switching firms. While exact percentages can vary depending on the firm, role, and market conditions, here are some general insights:
Compensation Premium: A lateral move at your level often comes with a 15-25% increase in total compensation. This premium is designed to offset the risks of leaving your current position, such as losing internal momentum, relationships, and familiarity with your current firm's culture.
Negotiation Factors: The premium can be influenced by:
Non-Monetary Considerations: Beyond the percentage increase, consider other factors like:
Risk vs. Reward: As you mentioned, there’s always risk in moving. Ensure the premium and other benefits (e.g., title progression, better deal flow, or leadership opportunities) outweigh the potential downsides.
If you're targeting a specific BB, it might be worth reaching out to recruiters or peers who’ve made similar moves to get a clearer picture of what’s achievable in your situation.
Sources: 2017 Commercial/Corporate Banking Bonuses, Leaving My BB, MM Analyst Looking to Lateral to BB/EB - Thoughts / Comments on Process?, https://www.wallstreetoasis.com/forum/investment-banking/qa-front-office-investment-banking-analyst-in-india-at-a-bulge-bracket?customgpt=1, Lateral from MM to EB/BB
20-30% total comp premium is the standard expectation at that level. Base will be comparable across BBs — the real negotiation is a guaranteed first-year bonus to cover what you're leaving on the table. If they're coming to you, push harder. If you're initiating, 20% all-in with a bonus guarantee is the minimum that makes the math work.
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