Final Reviews And Bonuses - Teams Have Differing Opinions
Currently an An2 at a reputable MM shop (think William Blair, HL, etc). I just had my performance review and was interested to hear that one team I worked with thought I was excellent across the board, whereas another one thought I was slightly below average.
After seeing this, I was curious - how are analyst bonuses decided? I know seniors will go to bat for those they like, but do seniors also try to lower a bonus for someone they don’t like? Just not sure how this works entirely and whether or not I’ll get a decent bonus or a bad one.
Based on the most helpful WSO content, analyst bonuses are influenced by several factors, and your situation highlights some of the nuances:
Performance Reviews and Team Opinions: Bonuses are often tied to performance reviews, which can vary depending on the teams you worked with. If one team rates you highly and another rates you below average, it could create a mixed perception. This variability might impact your bonus, especially if the decision-makers weigh one team's feedback more heavily.
Senior Advocacy: Senior bankers play a significant role in determining bonuses. They often advocate for analysts they value and believe contribute significantly. Conversely, if a senior dislikes an analyst or perceives them as underperforming, they might not push for a higher bonus—or, in some cases, could indirectly influence a lower one.
Group and Firm Performance: Bonuses are also tied to the overall performance of your group and the firm. Even if you perform well, a weaker group or firm performance could limit the bonus pool available.
Discretionary Component: Bonuses often include a discretionary element, meaning management has some flexibility in allocating funds. This is where senior advocacy or lack thereof can make a difference.
Bucket System: Many firms use a "bucket" system to categorize analysts (e.g., top, middle, bottom). Your placement in these buckets, influenced by reviews and senior input, will largely determine your bonus range.
In your case, the mixed feedback could place you in a middle bucket, but it ultimately depends on how much weight is given to the positive versus negative reviews and whether a senior is willing to advocate for you. If you're concerned, consider having a conversation with a trusted senior to understand where you stand and how you can improve perceptions moving forward.
Sources: Three Things You Didn't Know About Becoming A Rock-Star Analyst, 2022 Analyst Bonus Thread, How do bonuses work for Analyst 1? Does it depend on the firm/how it does that year?, Fired as 1st year analyst?, What is a Reasonable HF Analyst Bonus in a Bad Year?
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