My bank started a vesting schedule for bonuses which impacts most people, including analysts. It ranges from 10% - 70%, meaning that amount is held back and not given to you immediately, rather over several years and if you leave, you forfeit the money.
Seems like a never ending cycle where you’ll always lose out. And if they fire you, any amount they still hold, they get to keep / don’t have to payout.
I can’t imagine working up to MD only to have 70%! of my bonus not given to me. Is this common at other banks? (Asking for BB’s / balance sheet MMs / EBs, not small, regional shops).
Yes usually some portion held back and given 1/3 over three years let’s say
Is the % scale normal? 70% surely seems excessive, no?
Edit, should add I’m aware this becomes more common as a senior. However, trying to understand if this is now common practice for juniors too (Analyst -> VP) + if the % holdback at D / MD is normal (70%).
70% seems really high but also not an MD so who knows
At my EB it's been (% of bonus only, not including salary), vests over 4 years (1/4 each year)
Associate 15-20%
VP 20-30%
Director 30-35%
Luckily I work for a French Bank. Since this only applies to bonuses from 100k onwards I am not confronted with vesting periods, even in exceptional years.
Don’t think my VPs are either.
Congrats on BNP!
At my bank (EB) it’s about 10% of all in comp is deferred
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