Bonus Sharing
I'm a second-year analyst, and I'm pretty sure I want to work in Private Equity after my 2nd year is finished. What I've heard is that it's impossible to get jobs in PE if you didn't get top bonus. I feel like I have as good a chance of getting it as anyone, but I'd like to have more assurance.
I'm thinking of reaching a bonus-sharing agreement with my manager. He gets a X% cut of my bonus in exchange for putting me at the top. I figure I'll at least break even, and possibly get more money, in this arrangement. Even though I'm giving away a cut, I'm getting a larger bonus.
I know that bonus-sharing is a pretty typical way to ensure top performance reviews and advance one's career. The questions are:
1. What's the current market value of X? 15%? 20%?
2. How does one start this conversation?
3. Are there managers who just don't "do" bonus-sharing for old-style, so-called "ethical" reasons?
4. Can I ask two months out what bonus/review I'll be getting? If he's already planning to give me top reviews, then I don't need a bonus-sharing agreement.
:) I didn't know that this actually existed....
*Disclaimer: I have no idea what the standard is for this sort of thing, but...
To me, this reeks of bribery and shows a lack of ethics. You want to pay your way to number one without (potentially) performing it. If that isn't enough to convince you not to go forward, then think of it from the standpoint of if he says no and then "penalizes" you for even asking such a question. IMO, the benefits of him potentially saying yes doesn't outweigh the costs from an ethical viewpoint as well as the negative side effects if he says no.
Again, this is an outsider's perspective.
Not sure where you work, but if it's at a bank with a well-respected analyst program then your assumption that only top folks get PE gigs is bogus. Whether its mega-funds or MM/small shops these PE firms are salivating for the modeling skills you guys have picked up over your two year stint. Just make sure you learn as much as you can so you can impress your new firm once you move on. The Street is a very small place.
That sounds like straight bribery to get the top bonus...even if you do not get the full monetary value of the bonus, you are paying for the undeserved distinction of being top bucket. Fully unethical but eh, the street isnt big on ethics anyway, do what you please
Is it possible to check how much you have been paid? For example, in my country, there are no legal ways for a new employer to find out how much you have been making at your previous job, in case you don't want them to know.
OP, I'll give you 20% of my salary if you hook it up with a job. PM'd you my resume, waiting for a reply with your bank account number so I can get 1% back on direct-deposit deals with my bank. win-win for everyone.
edit: not sure that would work, so we'll just stick to the standard bribing method of cash payments.
If it was so easy, everyone else would do it.
oh damn.....never thought about that before. WSO can help you out in odd ways lol
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lol what? this is a thing? call me naive but i'm pretty sure this isn't something that happens frequently
As an outsider....
This is actually something I have never really thought about. I wouldn't try it though. What if your boss actually has some semblance of morals? You could get straight fucked. If I were the boss I'd be all for it, but under the table given the assumption that anyone who knows about it has as much to lose as I do if other, perhaps more "ethical," people were to find out. Conclusion: unless you know 100% that your boss is at least as much of a greedy, amoral scuzbag as I am, don't do it.
what's 20% of your bonus? let's say you get a bonus of 100k (let's say,) and you pay up 20%. wtf is 20k to your manager? the guy makes a shit ton of money, and you think he's going to risk it for a measly 20k???
how the fuck do some people break into the business world? i'm not the smartest guy around, but i don't think it's hard to figure out how stupid this idea is.
"What I've heard is that it's impossible to get jobs in PE if you didn't get top bonus."
So wrong. Bottom at Goldman will do a lot better than top bucket at UBS. PE recruiting is all about the headhunters who care a lot more about your bank and your group than about your bonus since most of the times you aren't even 1 full year into banking before recruiting for PE.
For my year, 1/3 of our class had signed offers before May, which was before bonuses were paid out.
Also your bonus in this market is more like 40k. No MD gives a shit about getting 8k (20% of that). Even if you offered 100% they wouldn't want to risk their entire career and a possible front page dealbreaker article for that.
lol
Yep... happens sooooo often...
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