BofAML Summer Associate Comp - is this right?
just got an offer as a summer associate at BofAML (Investment Banking). The comp in the offer letter is in a weird format. $24.82/hr and $37.23/OT Hour - seemed low to me, would appreciate your thoughts.
Here' what the letter says: "You will receive an annualized base salary of $100,000, payable on a bi-weekly basis in accordance with the Company’s normal payroll practices. Your base salary is equivalent to a rate of pay of $24.82 per hour per workweek. You will receive an overtime rate of pay of $37.23 per hour. Please be aware that all overtime must be pre-approved in accordance with Company timekeeping rules.
Anticipated work schedules for Investment Banking and Capital Markets summer associates contemplate that you will work 65 hours each week, based on deal flow and projects."
So when i did the calc on 40 hours/week I got that i would get an hourly pay rate of $48.08 and OT of $72.12. But then rereading the letter it looked like they were saying that 65hrs/week is the regular work week. So calculating with 65 hrs I get $29.59 and OT of $44.38. But this still doesn't match the letter. So I called HR and this is how she said they got the $24.82 and $37.23OT values:
HR took 24.82 * 40hrs + 37.2325 overtime hrs = 1923.55. then she took 1923.5552 weeks in a year = 100,024.6 to get to 100,000 a year. Does this make any sense to you guys/is this typical? Why are OT hours even considered in the $100,000 base calc? Shouldn't the prorated hourly salary be based on just the base salary divided by the number of hours in the work week? Do other banks do it this way for summer associates/is this comp for a summer associate at market levels? - would really appreciate some advice!
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How crazy are you to assume a 40 hr workweek? They put 65 as the base for a reason...it is banking. BAML is actually one of the highest paying banks, according to an article I saw earlier this week
oh hello
the numbers are weird but after you put in the OT that will inevitably be required, you will come up with a good 5+k over your peers at other banks
cartwright - haven't signed yet, and my letter says i get the log in info after I accept. The only thing really stopping me from signing was getting a clear understanding of the comp figures. have u decided on bofaml?
ibhopeful532 and cartwright - are u guys saying that other banks don't give OT? So comp wise, i'm not getting shortchanged when all is said and done?
thanks for the help guys
some banks do give OT (from what I recall Citi and UBS did). But in terms of summer compensation, BofAML is definitely up there.
i have it on good authority that summer analysts walked out of certain groups with 20-25k last summer (before taxes), compared to the 15k interns at other banks got. also bofAML gives the 2k housing stipend (which to be fair after taxes was like $1000) but whatever
but to be fair, selecting a summer ASSOCIATE position based on which firm pays you incrementally more or less is really, really short-sighted. If you're an associate, it's more or less presumed you want to follow this as a career track. Consequently, both your promotion potential and your potential compensation can vary a lot based on the firm that you join. Therefore, it's extremely important to a) find a firm you fit well with and b) to join the "best" performing firm that you can
I complely agree. Unless you need the money now for some reason you should take the offer that puts you in the best full-time position based on what you're looking for. In the long run the money you make during your internship isn't going to move the needle
i received an offer from baml last summer and just took a look at the offer sheet..
mine was based off 60k prorated and said the hourly is 28.8 and OT is 43.27
doesnt say anything about OT kicking in after 65 hours though. *this was baml GWIM, not ibd.
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Multiply your calc by the 4 hours sleep....should come out right.
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