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master of science in finance, CWRU or UMD? Hi, I'm accepted by the msf program in both university of maryland and case western reserve university, but its hard to make a choice between them. could anyone give me some suggestions?
If you don't know what deferred comp is, then it probably doesn't affect you. But what's so difficult to understand? It's compensation which payment is deferred to future years as an incentive to stay with a company and also to create long term value.
Deferred Compensation - Been working at the same fund for years (Originally Posted: 01/23/2013)
I've been working at the same fund for a few years and my compensation is really starting to ramp up now. However, 20-30% of my bonus is now deferred over multiple years. It is vested in part over the course of that time. Is this normal course for most funds? Just curious how comp for other analysts and PMs works across the street. I know SAC does 25% deferred comp for their analyst curious to get more data points.
Thanks.
I believe this is relatively standard - in some form or another.
Deferred Compensation - Which banks are deferring bonuses (Originally Posted: 01/20/2011)
Which banks are deferring bonuses? Obviously CS is because it's been well publicized recently. Does anyone know exactly which banks are deferring bonuses and what the details of the deferrals are? Are the deferrals going to be standard policy or are they just a short-term aftermath from the recession?
From DB / FT: " Morgan Stanley has sought to pre-empt new rules capping cash pay-outs on Wall Street, deferring 60 per cent of employees’ 2010 bonuses. The announcement came as the bank reported a higher-than-expected 88 per cent jump in fourth-quarter profits in spite of a fall in fixed income trading revenues.
Morgan Stanley did not disclose the precise form 2010’s deferred pay-outs would take. In 2009, the bank gave out restricted options that vest after three years and cash that is held by Morgan Stanley for a similar period and is subject to “clawbacks” if the employee underperforms."deferred comp is the new reality (Originally Posted: 01/23/2011)
I am surprised nobody on this forum is talking about deferred compensation.. several BB banks have announced that Associates will be getting only a fraction of their bonus now, the rest will be paid/vested over a period of time (varies from 18 mos to 48 mos depending on the bank)
From what I know, Associates aren't exactly pillars of the firm, their decisions don't exactly make or break shareholder and client value, so their incentive should purely be a recognition of the work performed and not some sort of stick around incentive. This should seriously affect people's decision to go into banking..
Would this practice lower their tax bracket?
What happens if you decide to leave? Do you lose the bonus?
you'd only get the vested portion of that bonus when you leave. Golden handcuffs for sure.
For post-mba associates, this is kind of it. There are no real 'exit opps" out of banking so why wouldn't you stick around? That being said, if you were to leave, you might be able to negotiate for a 'keep whole' arrangement for the unvested share with the firm you're hopping to.
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