Centerview $200K Retention Bonuses?!

Apparently Centerview is giving $200k retention bonuses to new Associates (via Litquidity). Not surprising given its Centerview, but still crazy given their pay is already #1. Are current associates or analysts getting anything? 
 

Would be surprised if EVR/PJT don’t follow suit now...

 

Wondering if other EBs will try and follow with either a permanent salary increase or one time bonus. I feel like if other banks have already raised base salaries the most efficient thing to do would be to raise salaries instead of a spot bonus but what do I know. Doesn't matter for CVP as they are already #1 in comp as you mentioned. 

 

Can MBB/tier 2 consultants move laterally to CVP? And do you know base/bonus for analyst/associates in European offices? Is it in line with US office? 

 

I don't think they have a rougher culture than any other EB honestly. If anything, it's better than Moelis and probably some others at least in terms of "lifestyle." I guess the catch is that it's really really tough to get a spot at Centerview versus anywhere else in banking. I think if you network, come from a target, and are a decent interviewer you have a very good shot at any shop, but I've heard CVP is a bit different in that their interviews are very rigorous and outside of the box unlike anywhere else in banking.

 

Can confirm this that firm cultures pretty unmatched from anywhere else and nice perks like free breakfast, lunch, din cafeteria and in-house barista plus daily $ spending credit if you want delivery 

 

Analyst at CVP now. There isn’t really a catch. They say they their goal is to attract, train and retain the best talent in the industry and quite literally put their money where their mouths are. Obviously people will leave for the buy side, and partners are fine / supportive but want to make 100% certain that they’re doing it for the right reasons vs. the wrong ones (i.e. not financial reasons)

Culture is actually pretty good. Seniors are generally understanding and don’t create extra work, staffing program is designed to give you the experience you want and people respect your free time when you have it. We work hard but so does everyone in banking.

Even though the timing corresponded with the slew of spot bonuses / salary increases at other banks driven by covid related turnover, this was messaged pretty differently and was made to address the A2A retention issue as opposed to the recent premature departures among the junior ranks (since we admittedly haven’t had significant attrition beyond the normal levels). 

 

Pretty good and meaningful point in your last sentence first para.

Lots of people leave for PE mainly under the pretenses they will get rich quick and are generally quickly sobered to reality unless they are going to a MF/UMM. Incentivizing people with comp could actually help them reevaluate why they want to go to the buyside and potentially stick around in banking, though I could also argue why stick with the money-chasing guy who is only following dollars instead of what he/she actually wants to do?

 

The $200K sounds great but EOD Associate recruiting market is super tight right now. CenterView senior management knows if they can do one deal with $10-15mm in fees, it’ll pay back for all these guys 5x over. Much easier to keep A2A vs trying to go recruit new guys who are likely not going to pan out and deal volume is very high right now to make a whole bunch of money. Tbh those who take it are giving up long term much higher upside in PE/HF while MDs make the fee. Nobody going to retire with Associate / Principal money 

 

Exactly. Not even MF PE will pay that much cash as a 1st yr associate. Most exits won't be MF PE or MM HFs either so you're already dealing with a lower baseline off the bat. If you're not super into the investing game and are in it for the comp, then staying in something like the CV role is arguably much better, especially for the risk-averse folks (which is more of the population than care to admit it)

 

This was a one-off bonus - only for this year - for internal A2As only with a clawback condition to stay for 3 years. Don't expect other banks to match this. Basically they are paying 2021 A2As 3 years worth of associate sign-on bonuses. Company P&L wise, no different

 

This was a one-time bonus only for A2As with of course clawback conditions There aren't that many 3rd year analysts still hanging around anyway so very few who are even eligible. Doubt that any other bank would match it.

source: I work at CVP Palo Alto

 

I don’t think this bonus changes anything. It may make the marginal Analyst that might be exiting to a small PE / HF stay, but if you get an offer from MF PE or some tiger cub, you are leaving without a doubt.

 

yeah but very few Centerview analysts are leaving for anything other than MF PE or top HF's. I really think this is them attempting to compete with MF PE on total comp

 

I was given the sentiment that the hours at the Associate level are much lighter at CVP. Might be the reason they expect people to stay on. 

 

CV hardly recruits at MBA level—typically diversity candidates at mostly Wharton. I’ll avoid specifics but the signing bonus is similarly insane compared to peers for their small class

 

Oh my word. I’m at MBB, I’ll move to analyst level if they gave me an interview!

 

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