Credit Suisse Bonus
Anyone else catch the dealbreaker article on them paying no bonuses to junior bankers and freezing base pay levels (in the case of associates, lowering base pay by $25k)?
Is this for real (as in actual IBD analysts and not the fixed income traders)? This past summer bonuses were not down nearly as drastically, so is this an omen of things to come for those who get paid this coming summer?
80k all in first year, 85 hours a week, 51 weeks the first year comes out to $18.50 an hour before taxes.
Scary.
If true, I'm surprised this isn't getting as much attention as it should
From Dealbreaker:
“Word is that second year Credit Suisse analysts will receive no base increase from 80k and no bonus this year (as for first years, it would seem unlikely that they’d get bumped from 70k to be making the same as second years). Third years getting promoted to associate are HOPING for 100k base. Last year first year associates made 125k base so this is a huge reduction of 25k. Much unrest and most expect huge drains as people find other jobs.”
No increase for first year analysts, probable 25k decrease in base for 1st year associates. Shit.
Unreal.
I'm interested in possible implications of this move.
wow this is unreal. I would be shocked if this was to happen. on a side note, do u by any chance know how have the bonuses this year been across Citi and ML for analysts?
I thought CS IBD pays analyst bonus in July/August - so that can't be the case for 2nd years to get 0 bonus...
Citi does pay in june/july.
My question is this:
For the analysts who get paid in June/July, wouldn't these bonuses come out of 1H earnings and not 2011s? I'm under the impression that it's really going to be these next 6 months that make the difference for us. Anyone with knowledge know the answer to this?
It doesn't surprise me at all. The correction of misallocation of human resource is normal after the bubble bust. The pay will slowly improve as people adjust for a more realistic earning expectation and as economy slowly improves, although it probably will not reach the previous high.
What I want to know is if CS will pay out the bonuses in their "tied derivative investment vehicle" with a multiyear vest on it. Personally, I think it's a rather brilliant way to work to align interests, but that's just me.
The comments were gold.
The sht they paid out in 2008 (the CMO pools) have almost doubled ... much better than getting stock and vest right about now ...
It's like getting assets at a 40% discount ....
Asf for the base freeze - its impossible since CS is on the July cycle ...
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