Boutique Regional Salary
I am in the process of interviewing for an analyst role with a 15 man shop in the mid west, what should I expect for salary/bonus?
Started in 2017, 50 transactions, 1.1B total transaction value since then.
Would also appreciate any details about working at a small bank like this.
Thanks!
Very tough to know the answer without some more details (sector-specific bank? median deal size similar to average $22mm? how many senior bankers of the 15?). There are some that are paying street base and others that are wildly under. Bonus is just as variable.
5 analysts/interns, the rest are vp or above.
Well it’s hard to know without the actual revenue they generate given that dictates what the comp is based on a standard ~40% comp ratio for a firm that size. That being said assuming it’s A1 and you’re in the Midwest, it’s fair to assume something like 60-80K base with bonus being far too dark given the lack of info. I base that on a discount credited to the fact that it’s in a low CoL market and that as a smaller shop they’d pay a discount to the standard 110K Y1 analysts get these days.
Those numbers definitely seem more realistic. I’m trying to not be majorly disappointed with the number. Regardless I’m taking the offer if I get it. Thank you!
Comp ratio of 40% of revenue i.e. total employee compensation is 40% of revenue? I must be misreading because that seems low
Yes it's off of revenue. For IB, the comp ratio is calc'd off of the fees earned which is spread ratably depending on the MDs and product groups involved. Then there is the firm comp ratio, which takes into account all comp inclusive of juniors / back office etc which is typically reported in earnings. But to your point, the 40% is actually pretty high and usually just for M&A. Products within cap mkts such as equity and debt financings have a lower attributable comp ratio given they are lower margin.
You should be getting at a minimum $90-100k base. But I’d be skeptical of a firm paying under $100 these days.
I would bet there are a lot of firms this size paying lower
Just got an offer the other day, LMM associate position 85K and 40%-100% bonus, sticking with Corp Dev if that’s the market lol
At very similar firm in Midwest (not this one based on # of analysts) started a couple years ago, 10-15 man shop, generally product & industry agnostic, consider ourselves MM as clients are typically in the revenue range of MM and deal size varies from $20 - $400 (mean lower than the median) and as an associate I’m expecting $150-200 all in. Yes, it sucks now, but it’s better than not doing IB at all. The only caveat to this is that there is an understanding we’re in ‘start-up mode’ and comp will incrementally progress toward market as we start closing more deals / hiring MDs from very well known/large MM shops (multiple verbal commitments after this bonus season).
I will say if you’re interviewing with firms such as these, it would be logical to assume you’re not a strong candidate for an established MM firm (nor was I) and if you have a strong desire for IB, then this is likely your one and only chance. You’re catching a break with extreme luck and timing. WLB is strong comparatively (prob 70 hour weeks) with the same nature of work (yes this will increase as firm grows). You will build the right skills, learn the industry / process at a normal pace, then be able to leverage that in 1-2 years to lateral for essentially the same role at a more established firm and almost double your comp. Or if you’re lucky, the firm progresses toward market comp and you maintain a great culture and are at some place you can build a career at.
Regardless, this is your one opportunity, if you pass now, you likely will not get another. This is your fastest path to ‘market IB comp’, if that’s what your goal is? You can always go to any corp dev dept., regardless of what IB shop you’re at (excluding blue-chip tech).
This is exactly what I needed to hear. It’s become more about banking and less about comp for me. Just trying to make it happen with less than ideal circumstances. Thank you!
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